John Gormley (Dublin South East, Green Party)

While the national climate change strategy proposed a levy on low efficiency bulbs, a more direct approach is necessary. The standard I will introduce will see an end to incandescent bulbs and will have to be met by all lightbulbs on the Irish market from January 2009. A national standard will create certainty for manufacturers and suppliers about the lamps that can be supplied and will stimulate the development of alternative lighting technologies in Ireland. It will also provide the greatest assurance as to effectiveness of the desired environmental outcome, both in terms of reduced greenhouse gas emissions and reduced energy consumption. This measure will deliver emissions savings of up to 700,000 tonnes per year from residential lighting alone when incandescent bulbs are fully replaced in all domestic light fittings. It could also save consumers an estimated €185 million in electricity costs per annum.

Next week I will join the world's environment Ministers as we begin the process that must lead to an international agreement on reducing emissions in the post-Kyoto Protocol period. Europe is showing real leadership on what is required and we must be part of it. The need to look to 2020 and beyond and contemplate the scale of the required emission reductions clearly shows that the annual carbon budgeting process must be an integral feature of the Government's policy-making and annual budgetary process. I will be providing more detail on the information contained in the carbon budget when I present the first annual status report on the implementation of the national climate change strategy to the Oireachtas in the spring.

I wish to deal with motor tax measures. Following a review earlier this year of its strategy to reduce carbon dioxide or CO2 emissions from new cars, the European Commission concluded that only limited progress had been made. In the light of this review, the Commission announced the framework of a new strategy that sets out an integrated approach towards achieving this overall objective. The new approach proposed a combination of legislative measures encouraging member states to levy car taxes based on CO2 emissions; promoting improvements in vehicle technology through enhanced research efforts, and promoting the purchase of fuel efficient vehicles.

Road transport generates about one fifth of the European Union's CO2 emissions, with passenger cars responsible for around 12%. Although recent years have seen improvements in vehicle technology — particularly in fuel efficiency which translates into lower CO2 emissions — this has not been enough to stem the growth in emissions due mainly to increased car ownership and increased size. While the European Union reduced overall emissions of greenhouse gases by almost 5% between 1990 and 2004, CO2 emissions from road transport rose by 26%. This was despite a reduction of over 12% in average new-car CO2 emissions between 1995 and 2004.

The situation in Ireland is even more stark. While road transport accounts for a similar portion of total emissions, we have seen an increase in emissions from road transport of around 180% between 1990 and 2006. This reflects growth from relatively low car ownership levels in 1990 but unfortunately the growth is expected to continue.

Currently, 12 EU member states, including Austria, Belgium, Cyprus, Denmark, France, Germany, Italy, Luxembourg, The Netherlands and the United Kingdom, levy or propose to levy car taxes that are totally or partially based on a car's CO2 emissions or fuel consumption, or both.

In tandem with the Tánaiste's announcement yesterday on vehicle registration tax, I am introducing a fundamental change in the manner in which motor tax is to be charged for all new cars and newly imported cars. It will come into effect on 1 July 2008, from which date motor tax on such cars will be determined solely on the basis of their CO2 emissions. Thus, motor tax will be re-balanced in favour of cars with lower emissions. The public consultation undertaken on the greening of motor taxation following last year's budget proposed a system based on a combination of CO2 emissions and engine size. If we are serious about addressing emissions from cars, we need to move to a system based solely on CO2 emission levels. I am very pleased we are introducing this today. It reflects the views of many contributors to the public consultation exercise.

Turning to the detail of the new motor tax system, there will be a number of CO2 bands, commonly referred to as the seven white labels ranging from A to G. These are the same bands announced by the Tánaiste yesterday in respect of vehicle registration tax, and thus there will be a common approach in the motor tax and vehicle registration tax systems. Motor tax rates will be graduated as one moves up the CO2 bands. Band A corresponds to CO2 emissions of under 120g/km — the motor tax rate will be €100. Band B corresponds to CO2 emissions of between 121g/km and 140g/km — the rate will be €150. Band C corresponds to CO2 emissions of between 141g/km and 155g/km — the rate will be €290. Band D corresponds to CO2 emissions of between 156g/km and 170g/km — the rate will be €430. Band E corresponds to CO2 emissions of between 171g/km and 190g/km — the rate will be €600. Band F corresponds to CO2 emissions of between 191g/km and 225g/km — the rate will be €1,000. Band G will be the top band and the rate will be €2,000, reflecting CO2 emissions of over 225g/km.

See this speech in context