Carbon tax set to quadruple under Climate Action Plan
The carbon tax is expected to quadruple under the Government’s Climate Action Plan, to be announced by Minister for Communications, Climate Action and the Environment Richard Bruton this afternoon, Monday, June 17.
Such an action is anticipated to cost taxpayers €2.3 billion over the course of the next decade, sources have indicated to AgriLand.
The tax increases are expected to hit: auto diesel; petrol; kerosene; marked gas oil (green diesel); fuel oil; natural gas; peat briquettes; and coal – measures that will undoubtedly have a huge impact on agricultural and farm practices.
It is also understood that recommendations outlined under the Teagasc Climate Roadmap will be central to the long-awaited strategy, to be unveiled in a matter of hours.
Sources believe that the package includes an increase in the carbon tax incrementally from €20/t to €80/t – or possibly even €100/t – over the next number of years, which would also tally with the Government’s previously stated tax strategy.
It is understood that the much-anticipated plan will include radical measures to tackle congestion rates in cities and urban areas.
Such measures are expected to include: low-emission zones (where only low-emission vehicles can enter); additional grants for the transition to electric vehicles; and the wide-scale roll-out of extra chargers for such machines in a move to reduce the number of diesel and petrol vehicles on Irish roads.
The plan is aimed at facilitating the transition of all Irish electricity to a stated target of 70% renewable sources by 2030.
Sources have also indicated that a green property tax for the retrofitting of homes is in the pipeline – with the midlands earmarked for a specific retrofitting programme.
It is understood that regulation on this will be enacted at some stage this year.
Stay tuned to AgriLand for further updates…