Dáil Éireann Debate, Tuesday - 9 April 2024
292. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue generated annually by carbon tax increases in each of the years 2025 to 2030 respectively, with respect to the carbon tax increases in each of those years and on a cumulative basis. [14119/24]
Amharc ar fhreagraIn July 2023 my Department published a paper examining the Potential Fiscal Impacts of the Transition to a Lower Carbon Economy in Ireland. The paper examined the potential fiscal impacts of current domestic climate action policies including commitments in the Climate Action Plan 2023 and the Programme for Government and is available online : www.gov.ie/en/publication/dd671-potential-fiscal-impacts-of-the-transition-to-a-lower-carbon-economy-in-ireland/.
The analysis provides an overview of the potential exchequer revenue which may be impacted either negatively or positively by current domestic climate action policies. The paper builds on previous work on green budgeting published in 2022 and uses a scenario analysis of policy measures on exchequer revenues between 2023 and 2030. Forecasted carbon tax revenue is included in this analysis and overall annual carbon tax revenue between 2025 and 2030 is estimated to be approximately €7.1 billion as set out below :
|
Projected Carbon Tax Annual Revenue (€millions) |
|||||
|
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
|
1,087.4 |
1,153.6 |
1,202.7 |
1,238.0 |
1,245.7 |
1,186.0 |
It should be noted that this analysis is a point in time exercise and forecasted revenue is estimated using forward projected estimates of energy use from the Environmental Protection Agency (EPA) and the Sustainable Energy Authority of Ireland (SEAI). It is anticipated that updated energy use data will be available from the SEAI in the coming months and the Department will use this data for further updated analysis on potential fiscal impacts arising from the climate transition.
