Seanad debates
Wednesday, 14 June 2023
Nithe i dtosach suíonna - Commencement Matters
Greenhouse Gas Emissions
10:30 am
Lynn Boylan (Sinn Fein)
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Cuirim fáilte roimh an Aire Stáit. I want to raise the need for Government policy to incorporate the contributions that people on different incomes make to the climate crisis. In order to do that, good quality data is essential. The climate justice question is often framed as the difference between wealthy countries in the global north like Ireland and America that have high average emissions per capitaand global south countries like India or Mozambique that have low average emissions per capita. It is also important to reflect the fact that climate justice also applies within country borders. Country level averages often mask the contributions of different groups within society. The Climate Inequality Report 2023 makes the point forcefully that there are vast historical inequalities in emissions between regions but also that there are significant inequalities between individuals, both within regions and at a global level.
In the Irish context, research commissioned by Oxfam revealed, unsurprisingly of course, that the wealthy are much more responsible for the emissions in Ireland. One only needs to look out into Dublin Bay to know how this is so. There can be seen the 110 m. super yacht, Kaos, owned by the billionaire Ms Nancy Walton Laurie, of the family that owns Walmart. In addition to yachts, private jets, helicopters, fleets of luxury vehicles all contribute massively to the billionaires' carbon footprint.
Inequality is not just about the elite billionaire and the rest, either. The top 10% of the Irish population, by income levels, emits as much as the bottom 50% of earners. It is not just consumption emissions. It is also where those very wealthy individuals invest their money. We know that many people in this country do not have any money to invest. The level of inequality in the country has a direct impact on the emissions that are produced by the individual. Sinn Féin wants to bring down our carbon emissions, which we have to do. We also need to tackle the wealth-associated emissions. Over the years, we have repeatedly called for a wealth tax. We have called for a private jet tax. We have called for the removal of tax credits on a tapered basis from individual incomes greater that €100,000. We have called for a second home levy.
We need more data if we are going to be able to develop the policies that will actually go after the emissions of the wealthy. This is so important because it would be more effective in taking climate action and bringing down those emissions that we know the wealthy are responsible for. It would also help to demonstrate that "a just transition" is not just a slogan. It is actually essential to the decarbonisation process. If we want to achieve our 2030 climate emissions targets and our 2050 net zero target, we have to bring people with us. Bringing people with us means going after those who have the luxuries of the wealthy. It is easier to achieve those emissions reductions if we cut back on the superfluous luxuries of the wealthy than on the low income and low emissions groups whose emissions are largely tied to necessities like heating and commuting. In these areas there is very little scope for people to make changes in their day to day lives. This is a theory referred to by economists as the marginal effort. In short, the emissions of the rich are the low hanging fruit. Current climate policies are not paying sufficient attention to who emits what, rich or poor. It is all based on the lowest cost approach. The recent report of the Environmental Protection Authority, EPA, exemplified that again. We need the EPA and the Central Statistics Office, CSO, to produce the data so that we can develop policy that will target the emissions of the wealthy but also bring about a real, just transition.
Victor Boyhan (Independent)
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I would like to welcome the people, young and old, who are visiting here today. You are very welcome and I hope you enjoy your stay. We are debating Commencement matters now. This is where Senators raise particular topics with the relevant Minister. I hope you enjoy your day here in Leinster House.
Seán Fleming (Laois-Offaly, Fianna Fail)
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I am taking this Commencement matter on behalf of my colleague the Minister for Environment, Climate and Communications, Deputy Eamon Ryan. I thank Senator Lynn Boylan for raising this topic.
The EPA is responsible for compiling the inventories of greenhouse gas emissions for Ireland and for reporting data to the relevant European and international institutions. As such, Ireland's legal reporting obligations require that the agency submits data to the European Commission and the United Nations Framework Convention on Climate Change.The emissions data are compiled using methodologies in accordance with UNFCCC reporting guidelines and are disaggregated on a sectoral basis in alignment with the classification used by it for reporting at UN level, although some adjustments are made for ease of comparison with national policies in different countries.
The EPA's greenhouse gas emissions reporting also plays an essential role in the reporting and delivery processes that guide our climate action by informing our progress against a number of key emission reduction targets, specifically those set out by the Climate Action and Low Carbon Development (Amendment) Act 2021, the carbon budgets and the sectoral emission ceilings, as well as against our emission reduction commitments under the EU's effort sharing regulation. The EPA's reporting also provides valuable information regarding the source of our emissions and how various factors impact the emissions across different sectors of our economy.
Providing a breakdown of Ireland's greenhouse gas emissions by income decile or some other wealth metric is not available from the data collated and published by the EPA. That is fundamental to the issue being raised here today. However, there is significant work being undertaken to assess the economic, distributional and socioeconomic impacts of climate change in Ireland, including research and analysis from the EPA. We will continue to support and encourage research and analysis that helps to inform our understanding of Ireland's emissions and their impacts on different sectors of our society and assists in the development of climate action policies that address these impacts.
Moreover, the Government has adopted, through the Climate Action Plan 2023, a framework for a just transition to support and inform climate action policy and implementation. The framework comprises four principles: an integrated, structured, and evidence-based approach to identify and plan our response to just climate transition requirements; people being equipped with the right skills to be able to participate in and benefit from the future net-zero economy; the costs being shared so that the impact is equitable and existing inequalities are not exacerbated; and social dialogue to ensure impacted citizens and communities are empowered and are core to the transition process.
As set out in the plan, all relevant Ministers should consider this framework in the process of climate action policy formulation and implementation so policies are informed by the need to ensure a just transition. This includes creating sustainable employment opportunities, providing reskilling and retraining opportunities and providing appropriate supports for those most vulnerable as part of Ireland's transition to a climate-neutral economy.
It should be noted that the carbon tax is one of many policies in place aimed at reducing greenhouse gas emissions. Over the period 2021-30, planned carbon tax increases may allow for €9.5 billion in additional revenue which will support €5 billion for the national residential retrofit plan, which is a socially progressive programme with specific schemes for low-income households and local authority homes; €1.5 billion for new schemes that will encourage greener and more sustainable farming practices; and €3 billion in funding to ensure that increases in carbon tax are progressive by supporting targeted social welfare payment increases to address fuel poverty and provide for a just transition.
Lynn Boylan (Sinn Fein)
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I thank the Minister of State for the response but we are conflating two different things. He spoke about the impact of climate action on different income groups. That is important to assess what the impact is but what I am asking about is assessing the contribution various groups within society make towards climate change. The facts are that high net-worth individuals contribute far more to the emissions profile than low-income households. It is important to understand what the impact of climate action is on different socioeconomic groups but I am asking that the CSO start to collect data on how wealth contributes to people's emissions. To give one example, the Minister of State says retrofitting is socially progressive. We do not know that because the Department of Public Expenditure, National Development Plan Delivery and Reform has said it does not have the data to see how it reduces energy poverty. Looking at wealthy individuals, people who earn over €100,000 are able to avail of the grants. They are able to put solar panels on their roofs and get paid for the electricity they provide. They are able to get grants for their electric vehicles. That frees up more income for them to take more holidays and to buy more carbon-intensive products. We need to be looking at how high net-worth individuals are contributing to climate change, as well as looking at the socioeconomic impact of climate measures.
Seán Fleming (Laois-Offaly, Fianna Fail)
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I understand the point the Senator is making relates to the wealth of the people who are contributing to emissions rather than how the tax take is distributed. In fairness, every local authority is doing retrofitting schemes for its tenants - well, they should be and most of the ones I know are doing it. If a local authority is not doing it, that needs to be tackled and the chief executive should be contacted. A lot of the retrofitting, whether through attic insulation or other schemes, was for people of an older generation and people on social protection. Some of the benefits of funds raised by way of carbon tax have been specifically targeted at people on low incomes. The Senator made a point about collecting information on the contribution to emissions and income. Industry, agriculture and transport are all major sources of emissions and it is very hard to disaggregate that down to the wealth of the people working in the individual sectors. That information is not being compiled. I take the point of view but what is important is that all funds are directed at the people who need them most.