Michael Healy-Rae
Ceist:62. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding changes in carbon tax; and if he will make a statement on the matter. [32349/16]
Amharc ar fhreagraThursday, 27 October 2016
Ceisteanna (62)
Freagraí scríofa
In Budget 2017, I announced the exemption from carbon tax for fuel used to create high efficiency electricity in combined heat an power plants. The dual process of using energy to create usable heat and power is regarded as a highly efficient energy process and makes use of the heat produced in the electricity generation instead of releasing it into the atmosphere. The rationale for providing a full relief from carbon tax for the fuel inputs is to incentivise the use and development of this highly efficient technology, thereby contributing to reducing Ireland's emissions particularly in the context of our binding 2020 emission targets in both the heat and energy sectors. This measure is also designed to facilitate the use of biomass CHP as a renewable power source, further building on the Renewable Energy Feed-in Tariff which has been in place since 2012. The relief will be based on certification by the Commission for Energy Regulation that the fuel used has been to generate high-efficiency electricity.
I also announced in Budget 2017 the commencement of the carbon tax relief for biomass content of solid fuel which was legislated for in Finance (No. 2) Act 2013. The measure is designed to incentivise alternatives to fossil fuel and stimulate the market for low carbon fuel. The introduction of two thresholds provides an incentive to develop blended solid fuels with a higher biomass content. To further the environmental rationale, this relief is available only for low smoke solid fuels.