Robert Troy
Question:127. Deputy Robert Troy asked the Minister for Finance his plans to reduce carbon tax on Bord na Móna products to ensure future sustainability. [30191/15]
View answerThursday, 16 July 2015
Questions (127)
Written answers
The introduction of Carbon Tax was about sending a price signal that there is a cost associated with the consumption of fossil fuels to the detriment of the environment. It should be noted that as solid fuels have the highest carbon content of all fossil fuels they are considered the dirtiest fuels and given the environmental impact it is important that they are taxed.
While tax increases are unpopular, it makes sense to increase taxes in areas where some benefits can arise, in this instance a carbon tax promotes energy efficiency, reduces emissions and reduces our dependence on imported fossil fuels.
The Public Service Obligation (PSO) is the support mechanism for the generation of electricity using specific products including peat. It is designed to compensate electricity suppliers for the additional costs they incur by purchasing electricity generated by these producers. The PSO levy is vital to enable Ireland to meet its 40% target for electricity generated from renewable sources by 2020, which in turn is important for the achievement of Ireland's 16% EU 2020 target for renewable energy.
Carbon tax is deemed to be the most cost effective way of reducing overall emissions and reaching our EU 2020 emission targets of a reduction of greenhouse gases by 20% on 2005 levels. Accordingly, I do not intend to reduce the rate of carbon tax on Bord Na Móna products.