Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The section provides for the application of the carbon tax to solid fuels. The purpose of introducing carbon tax was to send a price signal that there was a cost associated with the consumption of fossil fuels to the detriment of the environment. It should also be noted that solid fuels have the highest carbon content of all fossil fuels and are considered the dirtiest fuels. Given the environmental impact it is important that they are taxed.

The tax is introduced in two phases, the first of which will apply from 1 May 2013 at a rate of €10 per tonne of CO2 emissions. The second phase will apply from 1 May 2014, at which time the rate will increase by €10 per tonne of CO2 emissions, thus bringing the carbon tax on solid fuels into line with that on other fossil fuels at a total rate of €20 per tonne of CO2 emissions. The net effect of the €10 tax from 1 May this year will be an increase of €1.20 on a 40 kg bag of coal and 26 cent on a bale of briquettes. I know the Deputies are opposing it, but it stays.