Mr. Derek Moran:

Climate policy generally is a matter for our colleagues in the relevant Department. The analysis of carbon investment is probably a matter for the Department of Public Expenditure and Reform. From the point of view of the Department of Finance, the key issue will be pricing carbon. This is the controversial and ongoing difficult issue of carbon taxation. There is broad consensus that one of the biggest contributors to reduction of emissions is by pricing carbon and putting a cost on it, but that is not simple. It is genuinely not simple. It would have distributive effects. It may affect those people on lower incomes more heavily and, therefore, we have to address those things. There is an urban-rural question in terms of the impact on farming and so on.

As recently as Monday or Tuesday this week, we put out a public consultation document at the request of the Joint Committee on Climate Action around the phasing in of carbon taxation, the hypothecation of those revenues and what might be done to support climate change efforts. Climate change is one of those issues. It is seldom that a Secretary General of the Department of Finance comes before the committee to say that hypothecating revenues towards something is a good thing. The underlying problem of the environment is one area where any revenues from a carbon tax should go towards carbon reduction.