Joan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

34. To ask the Minister for Public Expenditure and Reform if an evaluation has been carried out of the cost to the Exchequer of failure to meet the Paris Agreement's targets in respect of climate change; his plans to reform the tax system in line with the Paris Agreement; if there will be plans in budget 2019 to reduce carbon use; and if he will make a statement on the matter. [28992/18]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The primary aim of the Paris Climate Agreement is to hold the increase in the global average temperature to well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels. The agreement does not specify any emissions reduction targets for individual parties to the agreement.

However Ireland, in common with all EU Member States, has signed up to deliver its contribution to the Paris Agreement through the EU’s Intended Nationally Determined Contribution. This commits the EU to collectively delivering a reduction in emissions of at least 40% by 2030 against 1990 levels. Ireland’s share of this overall EU target has been set at a 30% reduction in national emissions by 2030 against 2005 levels.

Co-ordination of the national approach to achieving this target is, in the first instance, a matter for my colleague the Minister for Communications, Climate Action and Environment. However, my Department remains in close contact with the Minister’s Department in relation to any Exchequer implications arising out of compliance with this target. 

It is the long standing practice not to comment on measures which may or may not be included in the upcoming Budget. However, in relation to taxation I can say that as part of the joint research programme between the Department of Finance and the ESRI, the ESRI has carried out an analysis which examines the impacts of increasing the carbon tax rate in Ireland.  This paper analyses the economic, environmental and households impacts of increasing the carbon tax rate using an Energy Social Accounting Matrix.  The findings of the paper together with a number of other policy options in respect of energy and environmental taxation are due to be presented to the Tax Strategy Group in July. 

On expenditure, the Deputy will note that the Government recently demonstrated its commitment to addressing climate change with an unprecedented €22 billion capital funding allocation for climate initiatives over the next decade as part of the National Development Plan (NDP). This will be complemented by a further €8.6 billion investment in sustainable mobility measures. This commitment marks a step change in public investment on climate action and will demonstrate that Ireland is serious about meeting our climate commitments.