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Departmental Strategies

Dáil Éireann Debate, Tuesday - 27 November 2018

Tuesday, 27 November 2018

Questions (181)

Timmy Dooley

Question:

181. Deputy Timmy Dooley asked the Minister for Finance if he will provide a timeline for the development of his Department's specific climate change targets; and if he will make a statement on the matter. [49568/18]

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Written answers

The first National Mitigation Plan represents an initial step to set us on a pathway to achieve the level of decarbonisation required. It is a whole-of-Government Plan, reflecting in particular the central roles of the key Ministers responsible for the sectors covered by the Plan – Electricity Generation, the Built Environment, Transport and Agriculture, as well as drawing on the perspectives and responsibilities of a range of other Government Departments.

The measures that we implement through this first Plan will lay the foundations for transitioning Ireland to a low carbon, climate resilient and environmentally sustainable economy by 2050. To support this ongoing work, the Plan also includes over 100 individual actions for various Ministers and public bodies to take forward. Importantly, the Government recognises that this first Plan does not provide a complete roadmap to achieve the 2050 objective, but began the process of development of medium- to long-term mitigation choices for the next and future decades. Furthermore, it is a ‘living document’, which is being updated on an on-going basis.

As Minister for Finance I am leading on five National Mitigation Plan actions as follows:

No. 3 Examination of impact of carbon tax and future tax rate.

Current Status: ESRI study published in October 2018. Further ESRI study in progress which seeks to incorporate multi-annual impacts of carbon tax increases.

No. 55 Maintain under continuous review the use of the VRT/Motor Tax system in incentivising the uptake of lower emission technologies. (Leading with Minister for HPCLG)

Current Status: Kept under continuous review and, in view of the introduction of a new EU wide emissions system known as the WLTP, new approaches were discussed in this year’s Environmental Tax Strategy paper.

No. 56 Continue to encourage the adoption of natural gas as a cleaner transport fuel by maintaining the excise rate applied at the minimum rate allowable under the Energy Tax Directive.

Current Status: The excise rate for natural gas is maintained at the minimum allowable under the Energy Tax Directive while the Accelerated Capital Allowances Scheme provides tax incentives for the investment in and installation of infrastructure necessary to support the adoption of natural gas as a transportation fuel.

No. 71 Examine the expansion of existing support schemes.

Current Status: Existing tax expenditures to encourage the uptake of lower pollutant vehicles were reviewed this year and the 0% BIK rate for electric vehicles is being extended for a further 3 years while the VRT relief for hybrid electric vehicles is being extended for 1 year.

No. 74 Conduct a review of vehicle and fuel taxation measures within the context of evolving technology development and need to chart a sustainable pathway to the decarbonisation of transport by 2050.

Current Status: This is being achieved through measure 55 and also through work being undertaken by the Low Emission Vehicles (LEV) Taskforce which my officials participate in.

I understand that the Minister for Communications, Climate Action and the Environment shall revert to government with proposals for an ambitious multi-annual, all-of-government plan to set out the actions which must be taken in every government department and body to make Ireland a leader in responding to climate change. This Plan will build on the previous actions taken by government, including in the National Mitigation Plan and the National Development Plan. In this regard I will fully play my part as Minister for Finance to ensure significant progress is made.

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