Dáil Éireann Debate, Tuesday - 12 July 2022
246. Deputy Matt Carthy asked the Minister for the Environment, Climate and Communications the schemes, areas and projects to which carbon tax funds were allocated by the Government and subsequently re-allocated; the amount allocated and re-allocated; the schemes or projects to which they were allocated and re-allocated; and if he will make a statement on the matter. [37945/22]
View answerThe carbon tax is one of many policies in place that is aimed at reducing greenhouse gas emissions. The Oireachtas has legislated, through the 2020 Finance Act, to progressively increase the rate of carbon tax each year so that it will reach a rate of €100 per tonne of carbon dioxide emissions by 2030.
As set out in the National Development Plan, over the period 2021 to 2030 the planned carbon tax increases may allow for €9.5 billion in additional revenue.
€5 billion of the expected €9.5 billion in additional carbon tax receipts will be invested in energy efficiency, including the National Residential Retrofit Plan. Grant supports available under the National Home Energy Upgrade Scheme were announced by the Government in February of this year, and these will be financed by carbon tax revenue. €1.5 billion of additional current funding will be made available for new schemes that will assist farmers in the decarbonisation of the agricultural sector. The remaining €3 billion in funding will be used to ensure that increases in the carbon tax are progressive by tackling fuel poverty and providing for a just transition
Decisions on the allocation of carbon tax revenue are taken each year by the Government in the context of the Budget and Estimates processes. The projected carbon tax revenue available for investment in 2022 amounts to €412 million. Full details on the allocation of this projected revenue is set out in the publication, ‘The use of carbon tax funds 2022,’ published by the Department of Public Expenditure and Reform, and available on www.gov.ie/budget.
