Oireachtas Joint and Select Committees

Tuesday, 18 June 2019

Committee on Budgetary Oversight

Budgetary and Fiscal Implications of Climate Change: Discussion

Mr. Frank Maughan:

I thank the Deputy. I did not have an opportunity to respond to her first two questions but I will also address them.

I wish to clarify the point I was trying to make about dwelling on the additional revenue. I was picking up on a question in the committee's invitation about the amount of additional revenue that could be raised in increasing the carbon tax. It is a matter of public record in the Tax Strategy Group papers. The figure I provided in my opening statement was €100 million for each additional €500 million raised.

I was asked about the potential use of additional revenue from the carbon tax. As I mentioned, the Department of Finance has issued a consultation paper on this issue. The Department has explicitly picked up on the recommendations of the Joint Committee on Climate Action on the potential options for recycling the revenue, either in terms of a dividend to individuals and households or using the additional revenue to fund specific schemes that could be directed at people at risk of energy poverty, etc. The Department is considering several options and has invited submissions on the matter. I expect that they will be considered as part of the budgetary process in due course and that decisions will be taken on the best approach to adopt to address the recycling of revenue.

I was asked a question about the cost of implementing the plan. It presents the most cost-effective way of reaching our targets for 2030 across all sectors from which there are greenhouse gas emissions.