Members of the Oireachtas had already returned to spend Christmas in their constituencies when Government launched the latest iteration of the Climate Action Plan and so it did not face a great deal of scrutiny, but I feel compelled to highlight the stark misalignment between ambition and practicality. Ireland stands at a climate crossroads and our decisions now will shape our social, economic and environmental destiny.

 ‘Ideological Purity’

 The Government’s climate targets are commendable, but the urgent need is for practical, impactful, real-world action – not targets. Unfortunately, the Climate Action Plan 2024, while ambitious, often falls into the trap of what I term as “ideological purity.” While targets are set consistently, what’s lacking is the pragmatism required for immediate carbon emission reductions.

Our approach to decarbonising transport is a great example. The Government keeps setting targets for the number of electric vehicles on Irish roads, and when those targets are missed, they just set a new one. Even now, the Minister still refers to a situation in 2030 where close to a million EVs will be registered in the State, despite the fact that one would struggle to find anyone in the motor-trade, the Department of Transport or any other body with skin-in-the-game who truly believes this will transpire.

Minister’s Silence

Contrast this with the Minister’s silence when we moved to E10. In a matter of weeks, we reduced emissions from the transport sector by more than all the EVs on Irish roads today. Eamon Ryan didn’t want to discuss this. Didn’t want to acknowledge the fuel industry’s contribution to addressing the climate emergency to date – or to allow us to have the maximum positive impact that we can in the transitions to net-zero and beyond.

He will argue that supporting low carbon liquid fuels encourages using traditional cars with combustion engines, when he just wants us all to switch to EVs. I advocate for a nuanced approach where advanced, synthetic and biofuels work in tandem with EVs to reduce transport emissions. Placing all bets on electric vehicles while ignoring other sustainable energy sources for transport actually makes meeting our 2030 targets even harder.

Government focus

The Government focus is on electrifying the entire private transport fleet. While this sounds neat, electrifying every single vehicle is simply not realistic. This is particularly true for heavy goods vehicles where the weight of batteries poses significant challenges in fully transitioning the vehicle to an EV. Even if we envision a future with all cars and light-duty vehicles electrified, the timeline for such a transition is long. The question then becomes whether we accept current pollution levels or proactively reduce them as we transition? This is where a technology-neutral approach becomes imperative, focusing not on predefined targets for specific technologies, but on an overall reduction in emissions.

Carbon emissions

In 2022, Ireland’s transport sector, a notable source of carbon emissions, saw a dramatic increase in activity and sales in petrol and diesel, but not a proportional rise in emissions – indicating lower emissions per litre.

This discrepancy is attributed to the growing use of low carbon liquid fuels. Data from the National Oil Reserves Agency revealed petrol sales rose from 820 million to 920 million litres, and diesel sales increased from 3.3 billion to 3.6 billion litres in 2022.

Therefore, contrary to the significantly higher fuel usage by the transport sector in 2022, the reported 6% emission increase suggests lower emissions per litre, highlighting the potential environmental impact mitigation through increased use of low carbon liquid fuels.

Advanced biofuels

In my discussions as CEO of Fuels for Ireland, I’ve highlighted the potential of advanced biofuels, such as Hydrotreated Vegetable Oil (HVO), as a practical bridge to reduce carbon emissions in the short term. Yet, the Government’s reluctance to embrace a technology-neutral approach hampers progress. It’s not about pitting biofuels against electric vehicles; it’s about employing all available tools in the arsenal to combat climate change and get to net zero.

Effective collaboration

One success story stands out – Fuels for Ireland’s members last year quietly facilitated a switch to E10 petrol with government coordination. This move yielded more carbon emissions savings than all the EVs on Irish roads combined. It exemplifies what can be achieved when industry and government collaborate effectively. Why not replicate this success across the broader spectrum of sustainable fuel options?

Ireland’s first 50-million-litre biofuel storage terminal, and the announcement of biofuel plant to open in Derry signals a step in the right direction. However, for biofuels to truly make an impact, the Government must make them financially viable for consumers. The current scenario, where consumers pay more for HVO than traditional diesel, is untenable.

Future energy mix

The conversation extends to the unpredictability of the future energy mix. My reservation about predicting the market for liquid fuels a decade from now stems from the dynamic nature of the industry. The fuels my members will be selling in the future may not even be on the market today. Embracing a technology-neutral stance allows for flexibility in adapting to evolving technological landscapes, ensuring that our strategies align with the changing contributors to emission reduction.

Efficacy over ideological purity

My plea is for efficacy over ideological purity. If we truly seek tangible results in decarbonising transport, a holistic, technology-neutral approach is the key. The focus should be on reducing emissions by a specified percentage, allowing for adaptability in the face of evolving technologies and market dynamics. Only through a collaborative and open-minded strategy can we address the immediate challenges and lay the groundwork for a sustainable, low-carbon future.

This Government’s fixation on heat pumps as the sole solution for domestic heating is similarly problematic. While heat pumps are undoubtedly a valuable technology, insisting on a one-size-fits-all approach disregards the reality that 200,000 to 400,000 oil boilers will still be in operation by 2030. A technology-neutral stance would allow for a diversified strategy, acknowledging the unique challenges posed by older homes and the varying needs of our citizens.

Significant hurdles

The recent emphasis on achieving 400,000 energy upgrade retrofits by 2030 faces significant hurdles. The shortage of skilled tradesmen and the structural limitations of older houses make this target another uphill battle. Heat pumps cannot be the exclusive solution; alternatives, including advanced biofuels, must be explored and incentivised.

In the realm of taxation, the Government’s use of excise duties on all fuels, regardless of their carbon emissions, is a blunt instrument. Biofuels, with their lower emissions, deserve differentiated treatment. I commend the pledge to introduce a Renewable Heat Obligation (RHO) by 2024.

Critical juncture

Ireland now faces a critical juncture where the decisions made today will reverberate for generations. The Government’s commitment to decarbonisation is worthy, but it requires a pragmatic re-evaluation. It’s time to acknowledge that a perfect fuel or solution may not exist today, and that’s okay. The pursuit of ideological purity should not impede practical policy changes that can make an immediate impact on our carbon footprint.

Fuels for Ireland members have also proposed a comprehensive review of fiscal policies related to energy for transport and heating. We need innovative taxation strategies that encourage the transition to low-carbon liquid fuels to power vehicles and homes without burdening consumers. Biofuel certificates and similar mechanisms can put advanced fuels on the map, providing a tangible pathway to sustainability.

A greener tomorrow

The road to a sustainable future is winding, but by leveraging all available tools and fostering collaboration between industry and government, we can navigate Ireland toward a greener tomorrow.

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“Things have calmed down and prices have begun to drop. There’s a new normal in play. Suppliers and supply routes, shipping routes and all sorts of things have been bedded in the last 4-5 months since the start of the war in Ukraine,” he says.

“The strength of the dollar is still having a fairly significant impact on fuel prices, but things have begun to calm down and we’re hoping that we’re coming into a period of greater stability.

“But of course there’s no guarantees on anything – we don’t know but we’re hoping that that’s the case.”

Successful pivot

Fuel companies have pivoted successfully to new supply chains since the start of the war on Ukraine and those supply relationships have now bedded in, Kevin says.

“People know who they’re dealing with, they know their ways of doing business, the new shipping routes – all are now well established. It’s not to say that we had to replace great quantities of our suppliers, but there have been some new suppliers, or more business done with some suppliers and more shipping or whatever,” he says.

“It’s pretty stable and what it means is, as of today we have very, very strong commercial stocks, we have no cause for concern on our delivery pipeline going forward – and of course if there were to be any issue we have the NORA supplies that are held by the government anyway. So we’re pretty comfortable.”

Threat from switch

He does have one caveat, however – if further supply disruption prompts other countries to switch to oil for electricity generation.

“The one thing that you have to say for the sake of completeness would be that if there were to be some other very significant disruption to market, we may have to make other changes or have to look again at how things are done. But that’s a normal part of doing business,” he says.

“We’re used to dealing with the unexpected, we’re used to dealing with things not going quite to plan and we’ve always successfully managed that.

“The one thing that we and government and anybody in the industry throughout the world will be cautious about is that if the supply of natural gas to Europe is very severely compromised, then you may see some European states switching to oil for their electricity generation. So you could see a scenario in which those gas powered power stations might decide to start using oil, which would put a very significant extra demand.

“But we can only deal with what’s in front of us and as we stand at the moment we’re pretty comfortable with our preparedness to deal with the winter in the context of the horrible situation in Ukraine.”

Legal action

Over the summer Fuels for Ireland has warned the government that it’s willing to take legal action if they attempt to implement the new Energy Efficiency Obligation Scheme in the way they intend.

“Essentially, under a revised Energy Efficiency Obligation Scheme, the government is attempting to make the fuel industry responsible for delivering 50% of the energy consumption reduction in the transport sector,” Kevin says.

“The problem with that is the way that you reduce energy consumption in the transport sector is to provide more public transport, to provide more active transport options and to have more energy efficient vehicles, none of which are in the gift of Fuels for Ireland and its members.

“What this will mean is that if they were to implement this plan, it’s likely to have an impact of a number of cents per litre of fuel which our consumers would be forced to pay if the government doesn’t manage to provide the efficient, reliable, regular, safe public transport plan that it says it’s going to deliver to reduce the need for private vehicles and so on.”

“It’s an action that we will take very reluctantly because we think the far more sensible thing will be to sit down with the department and work this stuff out, but they have shown little enough appetite to do that.”

Strong prospects

Fuels for Ireland has received opinion from senior counsel that this legal action’s prospect of success is very strong.

“We’re still hoping that the government will sit down with us and work out a way to go forward and look again. Nobody is denying the need to reduce energy consumption and to make sure that the energy we do consume is derived increasingly from renewable, sustainable, low and no carbon sources,” Kevin says.

“We also have to recognise where we are right now, and that is we’re in a country where 50% of the entire energy needs are being met by oil. If we were to shut off the taps at midnight tonight, ambulances would be left without fuel, homes would be left without heating, all this sort of thing. You would have a massive catastrophic impact on society and the economy instantly.

“So that’s absurd, we’re not going to shut off the taps, but let’s be frank, it’s equally absurd to think that we just carry on as we are. Forecourt business people know that they are not going to be running their business along the same lines as they are now in 10, 20 and 30 years’ time. If you’re going to depend on selling petrol, diesel and kerosene, you will not be in business.

“So we’re all looking at the alternatives, we’re all looking at how we increase EV charging facilities but also looking at advanced, synthetic and biofuels, we’re looking at the options for hydrogen, and all of these things need to be discussed. But we have to have a sensible approach and I think sometimes that’s missing in the government’s policy making but also in some of the public debate on the subject and the political debate on the subject. We need to get real.”

To read the full feature in Ireland’s Forecourt & Convenience Retailer, click HERE.

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His remarks follow a meeting of Ireland’s emergency energy group on Tuesday to discuss contingency plans if oil and gas supplies reach crisis point, which could see certain essential workers getting access to petrol and diesel.However, speaking in Cork, Micheál Martin says he can’t see it happening:

“We don’t anticipate that at all at this stage, but in the budget, that will be towards the end of September, we will be looking at measures,” he said.

“First of all, to deal with the more medium to longer term issues around costs for people, but also in terms of the cost of living package that will be parallel with the budget, that we can do something immediately for people to alleviate pressures in this calendar year and before the end of the year.”

Fianna Fail leader was in East Cork to officially open a new Stryker facility in Carrigtwohill which will deliver 600 jobs.

The Taoiseach said the Government was closely monitoring the situation on the international energy markets and supplies in Europe.

Ireland currently gets gas from both the UK and Norway following the decommissioning of the Kinsale Gas Field, which had supplied much of Ireland’s domestic and business needs, but Mr Martin pointed out that Ireland does have strategic oil and gas reserves.

On Tuesday, the chief executive of Fuels for Ireland, Kevin McPartland described Government plans for fuel rationing as a fire drill “so we will know what to do in the worst case scenario.”

Mr McPartland told Newstalk’s Pat Kenny show that the Government had plans in place for many years for potential fuel rationing in case there was ever a threat to fuel supplies.

The Government has an energy security group of which there are sub committees and he was part of the oil sub group, he explained. Meetings of the group were held on an infrequent basis, but had been held more frequently recently with the possibility of fuel shortages because of the war in Ukraine.

“We have to be prudent and plan,” he said.

Plans are in place for fuel rationing with access on a priority basis such as ambulances, fire services, gardaí. There are “tiers” of priority, he said, which could change depending on the duration of the threat to supplies.

However, the measures were designed to reduce consumption of oil. It was still an “unlikely scenario”, he said.

This plan had been “worked up” over many years, with a clear list of essential workers which covered more than “just doctors and nurses”. Under the plan there would be dedicated service stations for the exclusive use of those who had been prioritised.

“Normal” motorists would be limited to 15 to 20 litres which would mean that people would have to change their driving habits. There could also be an order for people to work from home where possible, he added.

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Motorists were reporting surging petrol prices at many forecourts across Dublin over the weekend, with petrol on average 4c more expensive per litre than diesel.

However, Fuels for Ireland CEO Kevin McPartlan says the petrol price typically surges at this time every year and it’s American motorists who are behind the phenomenon.

“In the last few days petrol has become more expensive then diesel again and a lot of people are wondering why that is,” Mr McPartlan said.

“And the answer is almost bizarre – in America the holiday driving season starts with Memorial Week which was last weekend. According to the AAA, the American automobile association, about 40,000 Americans drove more than 80km last weekend.

“It didn’t just happen this year – every year there is a massive spike in the price of gasoline on a global level, so that caused an increase in the price of petrol over the last few days.

“While we were saying that the impact on the price of diesel has been greater than on petrol in terms of the Ukraine situation, it seems like the markets believe there was a bit of an over correction in terms of the difference between diesel and gasoline, and that has been addressed a little bit. So it has meant that there has been a change, and we’ve gone back to diesel being slightly less expensive than petrol.”

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The CEO of Fuels for Ireland says it was untrue and hurtful when TDs accused fuel companies of profiteering on petrol and diesel prices.

As fuel prices rocketed in the wake of the Russian invasion of Ukraine, Mr McPartlan said the government made a “shocking error” in raising customers’ expectations that the excise duty cut would have an immediate impact on pump prices, and this led to some dark days as staff at filling stations were singled out for abuse.

“We already had high prices in Ireland, and then there was this huge increase in international wholesale prices for diesel, petrol and kerosene. In addition to that, there was a huge challenge in actually getting stock,” he says.

Careful messaging

“At the time we were very careful in the messaging. We didn’t want to suggest that there was any threat to the stock, because the quickest way to start panic buying was to tell people there was no need to be panic buying, so we were really careful about the messaging around that.

“But we managed stock quite aggressively and that meant there were certain bulk customers for whom we limited volumes that we were prepared to sell.”

As fuel prices rose rapidly in the wake of the Russian invasion of Ukraine, many home heating customers were warned that the maximum delivery would be 500 litres, while some hauliers and farmers were limited in how much they could buy at a time.

“That was in response to the fact that prices were increasing so rapidly that they in and of themselves were creating a spike in demand,” he says.

Febrile days

Mr McPartlan recalls the “febrile days” when petrol could have risen by 10c within 24 hours, putting pressure on customers to fill up quickly in case prices rose any further.

“People were doing that, but it was driving demand yet further. So that was a time of stress throughout the industry, including down to forecourt level where individual forecourt operators were trying to manage their pricing in a way to not prompt spikes in demand,” he says.

“Then we had a situation where there were a number of calls on government to make an intervention, and they reduced the excise duty.

“But they made a fairly shocking error, in my opinion, because they told people on the day that the announcement was made that they could expect to see pump prices drop at midnight that night. This completely ignored or didn’t recognise the fact that all stock on the forecourt at midnight had already had the duty paid at the higher level and that caused huge problems because people were coming in the next morning expecting to see a 15c or 20c decrease in the price of their fuel.

Forecourt staff threatened

“You also have to recognise that wholesale prices for diesel had gone up 20c in the 48 hours before that anyway and that meant you had forecourt staff being abused and threatened. We were accused of profiteering on the backs of the tragic situation of Ukraine which is not only untrue, but it’s not overstating it to say that it’s hurtful.

“The fuel industry had been trying to keep the country on the road. Margins are tight at the best of times and I know a number of people have gone on the record that they were selling at a loss on some days during that week – and to be criticised and attacked was, I think, a dark few days.”

Following that challenging week, Fuels for Ireland set up a meeting with four ministers, led by Michael McGrath, to clarify what was happening within the industry.

“I think the government began to recognise what was actually happening and recognise that very far from profiteering, people had made very significant sacrifices and had taken remarkable steps to make sure that at a time when there was a global challenge to supply, we kept homes warm and we kept vehicles on the road and supermarket shelves stocked. I think there has been a little more recognition since that point of what the industry has actually done during this crisis period,” Mr McPartlan says.

Superb response

However, the government’s response to the industry’s supply challenges was superb, he says.

Because Russia had historically focused on building diesel refineries, the EU had become a net exporter of petrol and net importer of diesel, and much of that diesel was coming from Russia.

After the invasion, there was a lot of consumer and political pressure not to trade with Russia, while many companies also decided to cut ties, Mr McPartlan says.

“That meant that the supply that was open to us and to the European market was dramatically reduced. Also, the demand was increasing because there were a number of countries that had been using Russian gas to generate their electricity and they commonly switched to using oil and therefore demand increased.

“You don’t need to be a Nobel laureate to recognise that if you have an increase in demand and a decrease in supply, it drives the prices higher and higher.”

Key challenges

The industry in Ireland now faces two major challenges – supply and demand.

“The government response to the supply challenge has been remarkable – it really has been superb,” Mr McPartlan says.

“We are having very regular, very engaged conversations with DECC, DoT, National Oil Reserve Agency at the most senior levels, and I’d have to compliment them at how responsive they have been and how engaged they have been in looking at that part of the challenge.”

Since the excise cut, wholesale prices have risen, and another excise cut came on April 1 which had originally been flagged in November to reduce the impact of the Biofuels Obligation Scheme.

NORA levy

However, Mr McPartlan said the industry was still waiting for government to deliver on its promise to cut the NORA levy by 1c, which was due to happen on April 1, but the primary legislation wasn’t ready.

“We’re waiting to see what they’re going to do on VAT – the government says they need to go to Europe,” he says.

“We have to recognise that fuel, no more than any other real energy cost, is not discretionary. People are not buying petrol and diesel for the craic, they’re buying it because they need to get to work, they need to get the kids to school, businesses need to be able to deliver their products. This is not something that people can say, oh well if the price goes up, I’ll just use less of it.

“When you hear some of the commentary about it – use the car once a week, which was Eamon Ryan’s suggestion. That’s fine if you live in suburban Dublin with the Luas at the end of the road and Dublin bikes and taxis and bus lanes and all the pedestrian infrastructure.

“But if you live in Ballyhaunis or if you live in Doneraile, none of those options are really available to them. There needs to be a little bit of reality in how the government is addressing this crisis and it needs to be recognised that very, very little fuel is being used for non-essential purposes.”

Fuel imports

Mr McPartlan is critical of the Leave It In The Ground campaign which he says hasn’t reduced emissions and has left Ireland having to import fuel.

“We were importing from countries on which we would rather not have dependence and that has been the policy of successive governments, not just in this country and the UK and Europe and the US.

He also targets the policies of climate taxing fossil fuels, saying this has done little to disincentivise the buying of fuels.

“There’s no evidence to show that when you increase the price of fuel, demand reduces – it just doesn’t happen.

“So you’ve reduced those capacities to produce in this and many other western countries, we have this stated policy to increase the price and then we have this huge market shock that has happened in the last five or six weeks – and we’re scrabbling to actually access fuel and we have to be alert to the fact that this could easily be taken out of our hands.

Russian gas

“The question is not just whether we impose oil and gas sanctions on Russia, the question has to be whether Putin decides that the best way for him to hurt Europe instantly is to just shut off supply – that would have a huge impact on global energy supplies but particularly Europe.

“So we’re reaping what we sow in some senses by eliminating any energy independence, by creating reliance on those on whom we would rather not have a reliance and by increasing prices over many years, and we now have a situation where when the shock happened its impact is massive and unavoidable on great swathes of the Irish population.”

New relationships

Since the invasion, all of the major companies have begun to change their fuel suppliers, along with shipping companies and routes, he says.

“I think it is pretty much inevitable that the Russian fuel that was coming into Europe, whether that be oil or gas, will be diverted to other countries because Europe doesn’t want to support Putin’s regime and doesn’t want a reliance on Russia any more.

“Russia will sell to whoever will buy their product, so China and India have already done big deals. That means that the people who were supplying China and India are now looking to put their fuel onto the market internationally and looking for new places to sell, so Fuels for Ireland members are buying from those members now.

Settling down

“What that means is that the existing relationships and routes are no longer in play and they all have to be rejigged. That will settle down in a couple of months, one would hope – and therefore the huge volatility should reduce.

“But those new routes tend to mean that fuel is travelling further, all the existing contracts have gone so you negotiate new contracts, and we can’t yet say what the impact on price will be.”

As for fuel retailers facing an uncertain future, there is little he can suggest for now, as the rules on predicting price changes are strict.

“They need to have a good relationship with their fuel supplier so that they get as much information as they can, as early as they can, so they can inform their strategy,” he advises.

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