Dáil Éireann Debate, Tuesday - 7 July 2020
219. Deputy Ged Nash asked the Minister for Finance his plans to increase and hypothecate all additional carbon tax revenue as outlined in the programme for Government; and if he will make a statement on the matter. [14616/20]
View answerAs stated in the Programme for Government, it is the Government’s intention to increase the carbon tax to 100 euro per tonne by 2030. This increase is to be achieved by an annual increase of €7.50 per annum to 2029 and €6.50 in 2030.
The Programme for Government also plans to legislate for the hypothecation of all additional carbon tax revenue into a Climate Action Fund, raising an estimated €9.5 billion over the next ten years. This Fund will be utilised over that period to:
1. Ensure that the increases in the carbon tax are progressive by spending €3 billion on targeted social welfare and other initiatives to prevent fuel poverty and ensure a just transition
2. Provide €5 billion to part fund a socially progressive national retrofitting programme targeting all homes but with a particular emphasis on the Midlands region and on social and low-income tenancies.
3. Allocate €1.5 billion to a REPS-2 (Rural Environment Protection Scheme) programme to encourage and incentivise farmers to farm in a greener and more sustainable way. This funding will be additional to funding from the Common Agriculture Policy. It will include incentives to plant native forestry and to enhance and support biodiversity.
