Carol Nolan (Offaly, Sinn Fein)
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158. To ask the Minister for Finance if he will consider introducing a derogation from carbon tax; and if he will make a statement on the matter. [16192/17]

Michael Noonan (Limerick City, Fine Gael)
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The carbon tax is designed to treat all carbon emissions the same in order to ensure that it is fair and its application is as broad as possible to make certain its efficacy. The introduction of Carbon Tax was to send a price signal that there is a cost associated with the combustion of fossil fuels to the detriment of the environment.

Ireland is legally bound to reduce emissions by 20% on 2005 levels in 2020 and 30% on 2005 levels by 2030, as part of the European Commission's Climate and Energy Package to tackle climate change. The carbon tax was introduced as part of an overarching energy strategy and is a key tool to reduce emissions towards meeting these and other climate change commitments.

As a matter of principle the reliefs from the carbon tax are limited to ensure as wide an application as possible.  Placing a carbon tax on fuels also offers an opportunity to develop cleaner more efficient and environmentally friendly alternative fuels.  The carbon tax is, and will continue to be, a fundamental pillar of the transition towards a decarbonised economy and society by 2050.  

Accordingly, I do not intend introducing a derogation from carbon tax.