Oireachtas Joint and Select Committees
Tuesday, 18 June 2019
Committee on Budgetary Oversight
Budgetary and Fiscal Implications of Climate Change: Discussion
Pearse Doherty (Donegal, Sinn Fein)
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That was my comment. My last question relates to carbon taxes. My question is addressed to Professor FitzGerald. I understand the issue of taxes. One is to raise revenue and the other is to change behaviour. If we want to change behaviour we need to have the option. That is why we argued for the levy on sugar-sweetened drinks to be at a level that would change behaviour. I have several questions. The first is that the trajectory set out in respect of the report is for carbon taxes to increase to €80 per tonne over a ten-year period. That would allow for a €6 increase per annum. The Climate Change Advisory Council has called for a €15 increase this year. Does the council believe we need to have sharp rises to change behaviour?
The second point is the €20 per tonne levy already brings in approximately €486 million. Is the money in the pot to be redistributed under the hypothecation model to those who want to invest themselves or to help those on low incomes, as the ESRI has pointed out?
Third, I subscribe to many of the points raised by Deputy Boyd Barrett. There is an issue of justice. People need to buy in to not only this part but to every part of the plan and other plans. Sinn Féin has proposals, like Powering Ireland 2030, which are far more ambitious than what the Government has in terms of renewable energy. It proposes a level of 80% rather than 70%. Other proposals need to feed into this mix. Where is the equivalent carbon tax increases on the big polluters and on industry?
The last question I have is for Professor FitzGerald in particular. Can he explain the impact in Sweden, which has the highest carbon tax in the world at €120 per tonne? Sweden introduced that in 1991. Yet, Sweden has only 0.6% of electric vehicles on the roads. While there are high levels of renewable energy, most is hydro-powered energy and that has been in place for decades. There is high reliance on nuclear energy. The figure is 40%. If we want to move people or, as the Government has put it, nudge people along the road, how come high carbon taxes have not resulted in more electric vehicles in Sweden?