Following an examination of the carbon tax proposal, including an extensive public consultation, the Government concluded that such a tax was not an appropriate policy option for the purpose of achieving greenhouse gas emissions reductions. A carbon tax was one option only in the Government's overall response to Ireland's commitment under the Kyoto Protocol to limit emissions of greenhouse gases to 13% above 1990 levels. It was estimated that a carbon tax would have contributed just over 0.5 million tonnes of emissions reductions towards a total reduction requirement of 9.2 million tonnes per annum during the first commitment period under the protocol of 2008 to 2012. Alternative policy options, focusing on non-tax measures in the national climate change strategy, are being examined with a view to achieving the necessary emissions reductions and ensuring compliance with the Kyoto Protocol.
Preliminary figures released by the Environmental Protection Agency in July 2004 indicate that emissions in 2003 were 24.7% above 1990 levels, down from approximately 29% in 2002 and 31% in 2001. Those figures indicate that significant progress is being made towards the target of 13% above 1990 levels. The national climate change strategy will continue to underpin the Government's approach to achieving the further reductions required.
