Matt Carthy (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

104. To ask the Minister for Public Expenditure and Reform the amount of funding that has been allocated from the carbon tax to the agricultural sector to date; and if he will make a statement on the matter. [48263/22]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Programme for Government recognises the special economic and social role that agriculture plays in Ireland, but also commits to the creation of schemes that will encourage and incentivise farmers to farm in a greener and more sustainable way. This is with the aim of developing a sustainable Irish agricultural sector that protects the environment and aligns with emerging consumer sentiment, while benefiting farmers and rural communities. The Programme for Government commits to the allocation of €1.5bn in projected carbon tax receipts over the next ten years for this purpose.

In Budget 2020 €3m in carbon tax funding was allocated to the Department of Agriculture, Food and the Marine for Green Agricultural Pilots. This additional funding was allocated to enable the establishment of pilot, locally-led schemes targeting climate action on peat soils under agricultural management.

In Budget 2021 €20m in additional funding was allocated for the creation of pilot environmental programmes. This was supplemented with the continuation of the €3m in funding that was provided for agricultural programmes from carbon tax receipts in 2020, bringing the total funding for carbon tax supported measures in the agricultural sector to €23m in 2021.

In 2022 the Department of Agriculture, Food and the Marine deferred their carbon tax allocation, save the continuation of the 2020 funding of €3m for green agricultural pilots. This funding was deferred on the basis that it would form part of the suite of programmes under the new Common Agricultural Policy, commencing in 2023.

For 2023, €81m has been allocated to the Department of Agriculture, Food and the Marine. This figure represents the €49m that was foregone in 2022, plus an additional allocation of €29m for 2023. Again, €3m in funding will be provided to continue the 2020 Green Agricultural Pilot programme.

This brings the total funding that has been allocated from the carbon tax to the agricultural sector to date up to €110m.

The funding in 2023 will be used for the new Agri-Climate Rural Environment Scheme (ACRES) which will support farmers who undertake actions which are beneficial for the environment. This will include measures that support mitigating carbon emissions, protecting water quality, improving soil fertility, protecting biodiversity, adapting to climate change, and reducing chemical fertiliser usage. Beyond ACRES, the remaining €3m of the 2023 Carbon Tax funds will support other initiatives, including a demonstration anaerobic digestion project

The use of carbon funds in 2023 was detailed in the Budget Day publication "The Use of Carbon Tax Funds 2023" which continues to be available on the budget.gov.ie website.

Questions regarding the operational details of the schemes should be directed to the Minister for Agriculture, Food and Marine.