John Gormley (Dublin South East, Green Party)

As announced in the 2008 carbon budget and confirmed more recently as part of the supplementary budget in April 2009, there is an unequivocal commitment that a carbon levy will be introduced in 2010. This commitment is reflected in the renewed programme for Government. The recent recommendations of the Commission on Taxation of course must be considered in formulating the carbon levy.

The principle of carbon pricing is accepted by virtually all economists and analysts as the most effective way to secure emission reductions. It is the basis of the EU's emission trading scheme, which applies to the bigger emitters such as power generators and industrial plants. The carbon levy will enable us to harness its benefits in the rest of the economy and will deliver a further reduction in emissions, which will be reflected in the forthcoming carbon budget projections. In accordance with the two previous carbon budgets, this year's carbon budget will demonstrate that climate change considerations now are integrated into the Government's budgetary policy and the decision-making process across all sectors. It also will demonstrate that decisions on expenditure and taxation are informed as much by the climate impact as by the financial and economic impacts.

The carbon budget will outline the preliminary emissions figures for 2008; the projected emissions for the 2008 to 2012 Kyoto Protocol period, taking account of the measures already adopted through the National Climate Change Strategy 2007-2012 and in the two previous carbon budgets; the effects of additional measures being put in place; and the projected emissions to take account of these measures. Essentially the carbon budget will demonstrate Ireland's progress towards meeting its targets for emission reductions.

See this speech in context