CO2 emissions targets set by the EU will add €2.6 billion a year to Ireland's energy bill, the Irish Exporters Association (IEA) said today.

According to the Association, targets set by the EU Commission for greenhouse gas emissions and use of renewable energy will add significantly to the cost base of the Irish manufacturing sector and that many companies exposed to competition from outside the EU will not survive.

John Whelan, Chief Executive of the IEA, the European Commission estimates that the additional costs of meeting the renewable energy targets could amount to €2.6bn per annum for Ireland. "Inevitably, that extra expense will be too much of a burden for some manufacturing companies, especially those who must compete against non-EU companies," he said.

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He noted that under the EU proposals, by 2020 Ireland will be required to cut greenhouse gas emissions by 20%, derive 20% of its energy from renewable sources and improve energy efficiency by 20%.

Only two other EU member states have the same level of improvement to make to achieve the 2020 Targets, as those imposed on Ireland. Mr Whelan said that this was despite the peripheral location of Ireland which meant that transport energy usage was higher than in most countries.

Mr Whelan also instanced the problem of using hydro power which is not available to any great extent here and solar panels that are not as efficient here as they are in most continental countries because of the low level of sun in Ireland.

"Newer technologies such as tidal barrages could be relevant in Ireland, but they are still at an early stage of development and will require massive R&D investment before viable systems can be introduced," he said.

In relation to wind power he noted this was the main new technology sector where Ireland had a natural advantage and could become effective market suppliers. However, he stated: "Much more aggressive funding, planning facilitation and network planning is needed in order for it to have any significant impact on electricity demand."

The Council of the Irish Exporters Association calls on the Irish Government to begin immediately to negotiate for a lower target level for Ireland and clarity on the 1990 base line of GDP/GNP, which is the root cause of the high targets set by Brussels for Ireland.

(VB/JM)