Dáil Éireann Debate, Tuesday - 22 February 2022
159. Deputy Eoin Ó Broin asked the Minister for the Environment, Climate and Communications if he will address the proposed extension of the EU emissions trading system to energy and household energy production and its impacts on customers; and if he will make a statement on the matter. [9857/22]
View answerAs part of its 'Fit for 55' package, the European Commission has presented a legislative proposal to review the EU Emissions Trading System (ETS). The aim of the review is to align the EU ETS Directive with the target set out in the European Climate Law to reduce net greenhouse gas emissions by 55% by 2030 (compared to 1990 levels). The proposal makes provision for an extension of the existing ETS 'cap and trade' system to a new separate emissions trading system that would apply at the point at which fuels for the buildings and road transport sectors are placed on the market.
The proposal to extend the emissions trading system is of significant importance to Ireland, as the greenhouse gas emissions associated with fuel used in these sectors are currently subject to the domestic carbon tax. Changes to our existing carbon tax would affect the expected revenues from scheduled annual increases to 2030, as provided for in the Finance Acts. The Government intends to ring-fence these revenues for a range of climate action programmes including residential retrofit, targeted increases in social welfare payments and other initiatives to prevent fuel poverty, and funding to encourage and incentivise farmers to farm in a greener and more sustainable way.
Ireland is now in the process of engaging, through negotiations in the Environment Council of Ministers, on all aspects of the ‘Fit for 55’ package of proposals, to ensure that the ambitions of the package can be delivered collectively by the EU in the most cost-effective manner possible, balancing considerations of fairness and solidarity between and within Member States.
