Tommy Broughan (Dublin Bay North, Independent)
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184. To ask the Minister for Finance his views on the OECD report entitled, Taxing Energy Use 2018, on the role of carbon taxes here and throughout the OECD. [11010/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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Climate change is a great global challenge and imposing carbon taxation on pollutant fossil fuels, as part of a broader strategy involving both taxation and non-taxation measures, incentivises the uptake of cleaner and more sustainable fuel sources.

The OECD report, Taxing Energy Use 2018, brings together statistical data from 42 OECD and G20 countries and allows for comparison of effective energy tax rates on energy use.  The report recommends the imposition of carbon tax as an important measure to address climate change and provides food for thought as to how this should be done.

The OECD also recommends complementary policies, such as grants to improve energy efficiency, in place of tax exemptions or reliefs.  This has been the long standing practice in Ireland with over 207,000 homes receiving in excess of €220m through the Better Energy Homes Scheme and over 134,000 low income households receiving free energy efficiency upgrades at a cost of €198m.

A review of the carbon tax in Ireland is underway as part of the joint research programme between the ESRI and the Department of Finance.  It is expected that this review will inform decisions for Budget 2019.