Denis Naughten (Roscommon-Galway, Independent)
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97. To ask the Minister for Finance the degree to which he expects to be in a position to incentivise alternatives to fossil fuels in the short and medium terms; and if he will make a statement on the matter. [38843/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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The 2019 Climate Action Plan charts an ambitious pathway to reduced carbon emissions by 2030 which includes a series of measures to phase out fossil fuel usage across all sectors while the Programme for Government augments the Climate Action Plan by committing to reduce emissions by an average of 7 per cent per annum throughout the next 10 years.

As set out in the Programme for Government, energy will play a central role in the creation of a strong and sustainable economy over the next decade. The reliable supply of safe, secure and clean energy is essential in order to deliver a phase-out of fossil fuels. The Programme for Government details several initiatives which will promote development of alternative fuels and technologies which include :

- Supporting the clustering of regional and sectoral centres of excellence in the development of low-carbon technologies.

- Investing in research and development in ‘green’ hydrogen (generated using excess renewable energy) as a fuel for power generation, manufacturing, energy storage and transport.

The Programme for Government also aims to decarbonise road transport through a range of measures including:

- Incentivising use of electric vehicles (EVs) and encouraging a shift away from petrol/diesel vehicles. Some measures already in place include lower VRT and motor tax rates, VRT reliefs, a 0% BIK scheme, and a suite of SEAI grants.

- Legislating to ban the registration of new fossil-fuelled cars and light vehicles from 2030 onwards and phase out diesel and petrol cars from Irish cities from 2030.

Other fiscal based initiatives to incentivise the provision and uptake of renewable energy include:

- Relief from electricity tax for electricity generated from renewable energy sources and from environmentally friendly heat and power cogeneration

- Relief from the carbon component of mineral oil tax on the biofuel portion of auto diesel and petrol.

- A partial relief from Solid Fuel Carbon Tax (SFCT) applying to biomass products.

- Relief from SFCT for solid fuel used in environmentally friendly High Efficiency Combined Heat and Power Cogeneration (HE CHP)

- Relief from NGCT for natural gas used in environmentally friendly HE CHP.

Further detail on the application of specific reliefs is available from the website of the Office of the Revenue Commissioners ().