Paschal Donohoe (Dublin Central, Fine Gael)
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As per Sections 27, 28 & 29 of the Finance Act 2020, the carbon tax increased by €7.50 a tonne as part of Budget 2024. The increase on transport fuels was effective from 11 October 2023, while the increase on home heating fuels will not take place until 1 May 2024.

In the Programme for Government - Our Shared Future, the Government committed to ring-fence all revenues raised from the increase in carbon tax rates for the period out to 2030, estimated to be €9.5 billion, and to allocate these amounts to:

• Ensure that the increases in the carbon tax are progressiveby spending €3 billion ontargeted social welfare and other initiatives to prevent fuel poverty andensure a just transition;
• Provide €5 billion to part fund a socially progressive national retrofittingprogramme;
• Allocate €1.5bn of funding to encourage and incentivise farmers to farm in agreener and more sustainable way.
• From Budget 2021 to date, all additional funding estimated to have been raised from the increases in the carbon tax has been allocated in full to Departments in line with these commitments on an annual basis. €788 million was allocated as part of Budget 2024 to climate action measures, to sustainable farming, and to ensure the most vulnerable are protected from unintended impacts of the tax increase. This represents an increase of €165 million on the amount funded from the Carbon Tax increases in 2023.
• Further details of these allocations are provided in ‘The Use of Carbon Tax Funds’ papers published annually on Budget Day, which are available to download on www.gov.ie.
• The Revised Estimates for the Public Service (REV) 2024 will contain further detail on the subhead level allocations to relevant programmes at Appendix 9. This is available at www.gov.ie/en/collection/e20037-revised-estimates/