| Three significant packages of climate change measures were published by the European Commission on 23 January 2008. The Commission intends that the package of proposals on climate change policy will lead to a model of sustainable economic development powered from renewable sources. The key proposals include a proposal seeking to share the 20-30 per cent. emissions reduction target (on 1999 levels by 2020) between member states. It was further proposed that a legally binding target for renewables of 20 per cent. of EU level energy consumption by 2020 be established. In March 2007 the UK published the Climate Change Bill. Under the Kyoto Protocol, the UK has committed to reduce greenhouse emissions by 12.5 per cent. from 1990 levels. The Government has set a further target of reduction in emissions of 20 per cent. by 2010. Approximately 25 per cent. of all the UK’s emissions of carbon-dioxide or CO2 comes from household use of fossil fuels, consequently the Directors believe that renewable energy heating technologies are high on the Government’s agenda. In June 2008, a consultation paper on the UK Renewable Energy Strategy was published by the Department for Business, Enterprise and Regulatory Reform (‘BERR’) in the UK. The paper stated that renewable energy is key to a low carbon energy future and that there is a need radically to reduce greenhouse gases as well as diversify energy sources. In early 2008, the UK agreed with other Member States to an EU wide target of 20 per cent. renewable energy by 2020. The UK’s proposed share would be to achieve 15 per cent. of the UK’s energy from renewables. The Renewables Obligation (“RO”) scheme requires licensed electricity suppliers to source a specific and annually increasing percentage of the electricity they supply from renewable sources. The current target is 5.5 per cent. for 2005/06 rising to 15.4 per cent. by 2015/16. Under the current scheme, for each megawatt hour of renewable energy generated, a tradable certificate called a Renewables Obligation Certificate (“ROC”) is issued. Suppliers can meet their obligation by acquiring ROCs, paying a buy-out price, or a combination of ROCs and paying a buy-out price. When a supplier chooses to pay the buy-out price, the money they pay into the buy-out fund. At the end of the 12-month obligation period, the buy-out fund is recycled to ROC holders as a payment. The Government is currently revising the RO scheme with their response of January 2008 to the May 2007 consultation “Reform of the Renewables Obligation” confirming the intention to introduce a banded scheme from 1 April 2009. Pursuant to this response, advanced conversion technologies (including gasification, anaerobic digestion and pyrolysis) and dedicated biomass burning of energy crops (with or without CHP), dedicated regular biomass with CHP will qualify for 2 ROCs per megawatt hour. In June 2008, the Government published a statutory consultation setting out detailed proposals on implementing the banding including details of the qualifying technologies/installations. Pursuant to the Irish National Development Plan 2007-2013, the Irish Government has committed to invest €8.5 billion in Ireland’s Energy Programme. The key components of the Government’s approach is set out in a number of plans seeking to promote renewable energy. In January 2008, the European Commission proposed that Ireland should ensure that 16 per cent. of all energy consumed comes from renewable sources by 2020. On 1 May 2006 the Irish Government announced a new renewable energy grant scheme. Under the scheme, businesses, schools and hospitals can receive grants from Sustainable Energy Ireland for the installation of biomass-fuelled and anaerobic digestion CHP units. The Government announcement stated that the scheme is designed to encourage industry and commercial users to generate their own heat. In addition, the Government also announced a new renewable energy feed-in-tariff (ReFIT) or guaranteed price for the production of electricity from biomass CHP and anaerobic digestion. Under the ReFIT programme, such electricity will receive a guaranteed price of €120 per MWh. | 
