Lynn Ruane (Independent) | Oireachtas source

I move recommendation No. 32:

In page 302, between lines 32 and 33, to insert the following: "Report on diesel and kerosene subsidies

100.The Minister shall within six months of the passing of this Act publish a report outlining the amount of fossil fuel subsidies provided by the State, through tax relief or revenue forgone, in respect of—

(a) diesel for agricultural vehicles,

(b) diesel for HGVs and other Haulage Vehicles, and

(c) jet kerosene.".

This recommendation calls for a report outlining the amount in fossil fuel subsidies provided by the State through tax relief or revenue forgone in respect of diesel for agricultural vehicles, HGVs and other haulage vehicles, and jet kerosene.

According to the Central Statistics Office, the Government provided €2.4 billion in subsidies to the fossil fuel industry in 2019. This was 1% higher than in the previous year and nearly 70% higher than in 2000, when the subsidies totalled €1.4 billion. Fossil fuel subsidies can support either production or consumption activities. The CSO figures show that indirect subsidies arising from revenue forgone due to the tax abatement accounted for nearly 20% of the €2.4 billion total. The single biggest subsidy was the excise duty exemption for jet kerosene used for domestic and international commercial aviation. The revenue forgone from this measure in 2019 was €634 million. Revenue forgone from the lower excise duty on diesel fuel was estimated at €400 million.

There have been several calls for these measures to be unwound given the higher rate of nitrous oxide and particulate matter, PM, emitted from diesel fumes, both of which have been linked to premature death and strokes in humans. The Government continued to subsidise peat-fired electricity in 2019, which is one of the most polluting ways of producing electricity, through the public service obligation levy on electricity consumers. This amounted to €25 million, although that was down substantially on the €66 million subsidy the previous year. Peat is still burned at Bord na Móna's Edenderry power station, which has applied for planning permission to burn biomass instead of peat.

Globally, it is estimated that the chances of staying in any kind of safe zone regarding climate change are 33% or less. We are increasingly looking at a catastrophic crisis globally. The countries that have contributed the least to the crisis, that is, those that have not contributed the greatest volume of carbon emissions, are already bearing some of the most devastating impacts. As the Minister is aware, COP28 is ongoing. Quite frankly, we are running out of time.Subsidising fossil fuels is not the answer. We need a rapid, just transition that will protect the most vulnerable. I might suggest that the money we use to subsidise fossil fuels should be used for the urgent transformation we need.