Dáil Éireann Debate, Tuesday - 16 November 2021
215. Deputy Darren O'Rourke asked the Minister for Finance if the estimated carbon tax income of €9.5 billion to 2030 factors in the EU Fit for 55 proposals for carbon tax changes on transport and buildings; the estimated impact these changes would have on Irish carbon tax income; and if he will make a statement on the matter. [55598/21]
View answerAs the Deputy will be aware, the Department of Finance provided a point-in-time estimate of potential revenue arising from incremental increases in the rate of carbon tax out to 2030 to assist with the Programme for Government in 2020. This estimate, therefore, predates the European Commission Proposal on the extension of the EU ETS to the road transport and building sector.
The proposed extension of the EU ETS to the road transport and building sector would impact carbon pricing and could therefore necessitate examination of carbon taxation in these areas. However, the negotiation of the ETS proposal is ongoing with all aspects of the file under discussion. Until such time as there is agreement on the file and we have a clear picture as to whether this extension will occur and in what specific manner that should occur, I cannot comment on the specific hypothetical impact on carbon tax yield estimates.
Ireland is engaging constructively with our EU colleagues on the Fit for 55 package negotiations, and will continue to stress the importance of our domestic carbon tax commitments.
