Dáil Éireann Debate, Monday - 11 September 2023
500. Deputy Jennifer Whitmore asked the Minister for Finance the amount of carbon tax accrued on a year-by-year basis since 2015; the amount of carbon tax revenues ring-fenced for climate action measures; and if he will make a statement on the matter. [39326/23]
View answerI am advised by Revenue that a breakdown of excise receipts for 2022 and prior years is available on the Revenue website at www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/receipts-volume-and-price/excise-receipts-commodity.aspx
I am advised by my colleague, the Minister for Public Expenditure, NDP Delivery and Reform that In line with the Programme for Government commitment to hypothecate all additional carbon tax revenue for use in climate action and just transitionary measures, each year, his Department issues a publication on the use of carbon tax funds for the forthcoming year alongside the Budget. This paper details the specific allocation of carbon tax funds in line with the Programme for Government commitments and provides details of the areas that will receive funding.
In 2023, the carbon tax revenue available for investment was €623m. This was comprised of the additional revenue made available in 2022 (€174m), 2021 (€148m), 2020 (€90m) and an additional €211m in 2023.
• €291 million of this carbon tax revenue was allocated to residential and community energy efficiency in 2023, an additional €89m on 2022. This funding permitted the continuation of a range of expanded supports for energy efficiency, including 80% grants for attic and cavity wall insulation, and grant support of up to 50% for deep efficiency measures. Almost half of these funds were allocated to provide free of charge energy efficiency upgrades to households in, or at risk of, energy poverty.
• €81m of this revenue has been provided to the Department of Agriculture, Food and the Marine to fund the new Agri-Climate Rural Environment Scheme (ACRES) detailed in Ireland’s Common Agricultural Policy (CAP) Strategic Plan 2023. The purpose of this scheme is to support up to 50,000 farmers when fully operational who undertake actions that will be beneficial for the environment. This will support improved outcomes on biodiversity, climate, air and water quality.
• €218m was allocated to targeted social protection measures, an additional €44m on the 2022 allocation, which allowed for increases in the fuel allowance, the living alone allowance, and the qualified child payment. Analysis conducted in support of Budget 2023 has found that households in the bottom five income deciles are better off as a result of the increased spending on social protection made possible by the increases to the carbon tax. So, the lowest income half of all households in Ireland are net beneficiaries from this increase in the carbon tax.
• The remaining revenues (€33m) were allocated to fund the continuation of the 2020 - 2022 Carbon Tax Investment Programme. The specific programme allocations are detailed on the Department's website and include support for the Just Transition Fund, peatlands rehabilitation, the Greenway and Urban Cycling programmes, grants for Electric Vehicle purchase and infrastructure, green agricultural pilot schemes and a contribution to the Green Climate Fund, which provides financial support to reduce greenhouse gas emissions in developing countries and to help vulnerable societies adapt to the unavoidable impacts of climate change.
A table with the breakdown of the allocation of all carbon tax revenues to date is included below. This includes detail on the 2023 allocations for the Carbon Tax, which totals €623m, comprising continuation of the 2020 - 2022 Carbon Tax Investment Programme as mentioned above, as well as major increases in incentives for farming in a greener and more sustainable way, residential and community energy efficiency, and targeted social protection measures, such as increases in the fuel allowance, the living alone allowance, and the qualified child payment.
Table 1 - Carbon Tax Allocation 2020-2023
|
Programme/Scheme |
Department |
2020 €m |
2021 €m |
2022 €m |
2023 €m |
|
Investment in Residential Energy Efficiency & Community Energy Efficiency |
DECC |
13 |
113 |
202 |
291 |
|
Targeted Social Protection Interventions |
DSP |
21 |
69 |
174 |
218 |
|
Incentivising farming in a greener and more sustainable way |
DAFM |
- |
- |
3 |
81 |
|
Continuation of 2020 Carbon Tax Investment Programmes in Other Departments |
Various |
56 |
56 |
33 |
33 |
|
Total |
90 |
238 |
412 |
623 |
Full details on the allocation of carbon tax revenues are available in the Departmental paper "The Use of Carbon Tax Funds 2023", which is available from assets.gov.ie/235732/93f95f31-bc1e-4823-993f-af16492fe628.pdf. Additional carbon tax revenues for allocation in Budget 2024 will be outlined in a similar publication this year.
