Matt Carthy (Cavan-Monaghan, Sinn Fein)
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225. To ask the Minister for Agriculture, Food and the Marine further to Parliamentary Question No. 104 of 4 October 2022, if the referenced programme for Government commitment which commits the Government to the allocation of €1.5 billion in projected carbon receipts over the next ten years is inclusive or exclusive of schemes which fall under the Common Agricultural Policy; and if he will make a statement on the matter. [50580/22]

Charlie McConalogue (Donegal, Fianna Fail)
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The Common Agriculture Policy Strategic Plan (CSP), for the period 2023 to 2027, is the primary vehicle for disbursing the expected carbon tax to farmers and rural communities.

The projected carbon receipts for the period 2022-2027 are, in the main, included in the indicative budget of €9.8bn for the CSP. The budget includes EU funding of €5.97bn for Pillar I and €1.56bn for Pillar 2 with indicative national funding of €2.3bn including projected carbon receipts. This significant increase in national co-financing for Pillar II.

It brings the national co-financing rate to 60%, which is a significant increase on the previous co-financing rate of 47% for the Rural Development Programme for the period 2014-2020. Even when the carbon tax funding is excluded, the national co-financing rate remains higher than that in the previous Programme, at just above 50%.

The carbon tax funding will be used primarily to support the Agri-Climate Rural Environment Scheme (ACRES), which is included in Ireland's CAP Strategic Plan for the period 2023-2027. However, beyond ACRES, it is proposed that some €3m of the 2023 Carbon Tax funds will support other initiatives, including a demonstration anaerobic digestion project specifically in 2023.

The utilisation of carbon tax funding for the period 2028-2030 and the most appropriate mechanism for doing so will be considered at the appropriate time.