Darren O'Rourke (Meath East, Sinn Fein)
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157. To ask the Minister for Public Expenditure and Reform the amount of the €652,287,332 that was raised in carbon tax revenue in 2021 that was ring-fenced for expenditure on climate action measures; and if he will make a statement on the matter. [21764/22]

Michael McGrath (Cork South Central, Fianna Fail)
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The Programme for Government commits to gradually increasing the carbon tax over the next decade to reach €100 a tonne by 2030. The funds raised by these increases in the carbon tax will allow for an additional €9.5bn of Government spending over the decade.

€3bn is to be allocated to targeted social welfare and other initiatives to ensure a Just Transition, €5 billion is to be allocated to energy efficiency, and the remaining €1.5bn is to be allocated to green agricultural measures.

Regarding expenditure in 2021, the Department of Finance estimated that the €6 portion of the carbon tax increase announced in Budget 2020 would raise €90m in 2020 and €130m in 2021 (i.e. over the course of a full year). To this €130m was added the sums available from the increase in the carbon tax in Budget 2021. Department of Finance estimates suggested that a €7.50 increase in the carbon tax in Budget 2021 would lead to increased carbon tax revenues in 2021 of €108m and €147m in a full year. This means that the combined proceeds of the 2020 and 2021 increases in the carbon tax were estimated at €238m in 2021.

Of these additional funds, €100m was allocated to investment in residential and community energy efficiency, €48m was allocated to fund targeted social protection measures, €20m was allocated to pilot environmental programmes in agriculture, and €70m was allocated to the continuation of the measures allocated funds under the 2020 Carbon Tax Investment Programme.

The measures that received allocations under the 2020 Carbon Tax Investment Programme include:

- The fuel allowance

- Energy poverty efficiency upgrades

- Peatlands rehabilitation

- The Just Transition Fund

- Greenways/urban cycling

- Grants for electric vehicles

- Investment in electric vehicle charging infrastructure

- Green agriculture pilots

- The Overseas Development Aid Green Climate Fund.

A breakdown of the additional carbon tax revenue allocations to each of these measures can be found in the Use of Carbon Tax Funds 2021 paper - assets.gov.ie/90878/b97737a2-a8d7-41e3-9b1a-53fc0822c20f.pdf 

From Budget 2022 onwards, the Department of Public Expenditure is allocating carbon tax funding based on an even annual allocation of the €9.5bn over the course of the decade. Thus carbon tax financed spending increased by €174m in 2022, reaching €412m in total carbon tax financed expenditure. Again, details of this allocation was published by the Department, alongside Budget 2022, in the Use of Carbon Tax Funds 2022 - assets.gov.ie/201264/5c96e5cd-b663-4887-bf2e-e13a393ffc50.pdf