Darren O'Rourke (Meath East, Sinn Fein) | Oireachtas source

I welcome the opportunity to speak on this motion. I will deal with the issue of the carbon tax as a mechanism for delivering on our climate obligations. Listening to Government spokespersons, we would be led to believe that the carbon tax is the be-all and end-all; no carbon tax, no climate action. However, we have had carbon taxes for 13 years now and emissions have increased year on year. Sinn Féin is firmly of the opinion that tinkering with markets or creating new ones will not deliver the type of systemic change that is needed.

The Government will say that in Ireland the carbon tax is ring-fenced for climate action but that is not really true. In 2021, €652 million was raised in carbon taxes while just €130 million was ring-fenced. Some €77 million of that was for residential and community energy efficiency, about 50% of which is going to retrofit the homes of the better off. It also included €15 million for the agriculture programme which is not being spent yet. There was €37 million spent on social protection but that is not climate action, it is climate mitigation, giving people money to buy fossil fuels because the Government is increasing the price of fossil fuels. Out of every €100 raised in carbon taxes, about €14 is going on actual climate action.

The Government will say carbon taxes are redistributed to protect those on the lowest incomes. In saying this, they very selectively cite an ESRI report from 2020. In fact, the calculations in that report are based solely on increases in carbon tax, nothing beyond that. They do not, for example, take the increased price of oil and gas on the international markets into account. The report does not support the Government's claim. The Government will also say it is a long-term commitment over ten years that will raise €9.5 billion for climate. That is very questionable. Just today at the Oireachtas Joint Committee on Environment and Climate Action we had a response to our reasoned opinion on the EU's Fit for 55 package. The Commission remains absolutely intent on introducing a new emissions trading system for fuels used in transport and buildings. That would equate to around 80% of carbon tax revenue possibly lost. We cannot and should not depend on carbon tax to deliver climate action. The evidence shows it does not work. In the context of rising energy costs and a failure to provide an alternative, it is punitive and unfair.

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