I am taking Question No. 108 on behalf of Deputy Louise O'Reilly.
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We wish to ask the Minister for Climate, Energy and the Environment if he intends to implement a socially just phase-out action plan for the replacement of fossil fuels by sustainable energy sources, and if he would make a statement on the matter please.
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It is really important we get a just transition. The Minister of State will recall how Sinn Féin tried to get a proper definition of that when we were working on the 2021 climate Act and he and I were on the climate committee. As we move away from fossil fuels and transition to a greener economy, we have to ensure we do not leave anybody behind. The SEAI grants have been made available to people for them to retrofit their homes but it has been shown that tenants and the Travelling community cannot do so. It is not working for them or for people living in older homes. Clare O'Connor from Friends of the Earth was before the climate committee last week. She said those living in the least efficient homes cannot afford to upgrade them. What specific accommodation will the Government make to ensure households such as these are not left behind as we transition to a sustainable economy?
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The European Commission's 2025 country specific report stated that energy poverty has increased in Ireland and we now have the third highest household or consumer electricity prices in the EU when the add-ons are included. Much of that is down to our reliance on fossil fuels, which makes us susceptible to global price shocks beyond our control. Some 300,000 people are in energy arrears at the moment, with price hikes coming down the road with the PR6. The Minister of State mentioned carbon taxes. It was shown at the Committee of Public Accounts that carbon taxes are not being ring-fenced as was promised. We are meant to be climate neutral by 2050. The Climate Change Advisory Council said that by 2039 we should not be reliant on fossil fuels. How does the Government envision a complete phase-out of fossil fuels in Ireland? We are not getting there.
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There he goes again.
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Has the Minister of State conducted an analysis of the impact of the introduction of the carbon border adjustment mechanism, CBAM, on the price of energy?
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I thank the Minister of State for his reply. It is really important that this analysis is conducted. We import 70% of our energy. The EU average is 58%, so we are importing a lot more than normal countries. We are also importing more energy from Britain. The introduction of the CBAM will affect the prices that households, consumers and families are paying. The Government said that energy emissions will fall by up to 68% between 2026 and 2030 when compared with 2018, but that figure is misleading because we are relying more and more on imported energy. We do not know where that energy is produced so we cannot pretend the emissions have disappeared. It is a bit of a distortion. For the families who might be listening in, this is not about climate targets; it is about energy bills. Will the Minister of State tell us clearly whether CBAM will push up energy prices? If he cannot answer that question for me today, will he commit to doing an analysis on how CBAM will affect prices for struggling households?
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He has chanced his arm.
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I want to talk about price review 6. Households in Ireland are paying much higher prices - some of the highest prices in Europe - and more and more families are falling into energy poverty and falling behind on their bills. Under price review 6, households and small businesses will be asked to pay even more while the large data centres will be paying less. Household charges could rise by 28% while data centres, which use the most energy, will see their energy prices reduced by 20%. It is just not fair. It is actually egregious. At the same time that energy credits have been taken away from people who are struggling, energy companies that are making huge profits are getting a reduction. One way to ease this pressure would be to change the PSO levy and the network charges so that data centres pay their fair share. Will the Minister of State commit to a restructure of the PSO levy? Will he show that he is full of the Christmas spirit, as I was when I shared my question?
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