Wednesday, 11 December 2019

Questions (119)

Jack Chambers

Question:

119. Deputy Jack Chambers asked the Minister for Finance the legislative steps he is taking to ensure hypothecation of carbon tax revenues and ongoing allocation to climate-related expenditure; if his attention has been drawn to commitments set out in sections 6.6.3 and 6.8.3 of the 2019 report of the Joint Oireachtas Committee on Climate Action regarding the hypothecation of such revenues through legislation; and if he will make a statement on the matter. [52077/19]

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Written answers (Question to Finance)

In Budget 2020 I announced that the revenues from the increase in the carbon tax from €20 to €26 per tonne CO2 would be ring fenced and the funds used to:

- Protect the most vulnerable in society;

- A Just Transition; and

- Investing in low carbon transition

To this end, on 9 October 2019, the Department of Public Expenditure and Reform published "The carbon tax increase - what it will be spent on", which sets out specific details in relation to where the ringfenced monies will be going. This can be accessed at: https://assets.gov.ie/35942/a72c67a62786496686fa9257b3f6fa64.pdf.

These are increases that would not have taken place in the absence of an increase to the carbon tax and the increased funding is additional to that provided by the National Development Plan. All funds are ring-fenced for these schemes only. Departments will not be allowed to use the carbon tax revenues for any other purpose. This guarantees that all funds raised by the carbon tax will go towards climate action.

I am satisfied that this approach will enable the continued ringfencing of additional carbon tax revenues to just transition and climate mitigation areas in future years.