Dr. Karina Doorley:

We should view the carbon tax from a long-term perspective. There is a commitment to increase the carbon tax by a certain amount every year for very good reasons, namely, because we want to invoke behavioural change to help with the climate crisis. The purpose of the carbon tax is to increase the price of carbon in certain fuels, diesel and petrol in order to invoke this behavioural response. What we are seeing currently is a bit different from that. Obviously, we have supply-side pressures driving fuel price growth. With the two of these together, it is unfortunate there is a carbon price increase and then these other supply-side effects at the same time. However, the European Commission has come out with a sort of toolbox to help with what it perceives to be transitory changes to fuel prices at the moment. The steps policymakers can take to help with the current pressures involve allowing bill deferments, perhaps increasing some social welfare payments temporarily and other measures like that. The Commission does not advocate rolling back on carbon taxes because that is a long-term policy with well-stated objectives. I suppose the issue is how to deal with the current inflationary pressures that come on top of the increased carbon taxes. Perhaps Dr. Farrell will say something on that.