The Department was allocated €23m of carbon tax funding in Budget 2021. This funding was allocated to pilot projects to prepare for the new programme to encourage and incentivise farmers to farm in a greener and more sustainable way. An amount of €20m was provided for the new REAP project, a results-based agri-environment pilot project that aims to test the feasibility of scaling up lessons learned from the current Rural Development Programme. This project rewards farmers for good agricultural practices and includes a results-based payment system with higher rates paid to those achieving higher environmental outcomes. This two-year pilot project was approved by the European Commission in May 2021, and payments will commence later in 2021.
The remaining €3m, which is the capital element of the allocation, is being utilised to increase the knowledge base and baseline data for climate and environment, identifying our carbon rich soils through a peat mapping project, a soil moisture monitoring network, and the monitoring of greenhouse gas emissions on farmed lands.
I am committed to bringing a scheme that will support farmers and help the environment.