Written answers
Wednesday, 9 October 2024
Department of Public Expenditure and Reform
Public Expenditure Policy
Darren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source
78. To ask the Minister for Public Expenditure and Reform the amount of carbon tax revenue allocated to each Department, in each year from 2020 to 2024; the amount unspent in each Department, in each year from 2020 to 2024; the proportion of the revenue spent on climate action measures per Department, in each of the years from 2020 to 2024; the amount revenue spent on climate action measures per Department, in each of the years from 2020 to 2024, in tabular form; and if he will make a statement on the matter. [40385/24]
Darren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source
79. To ask the Minister for Public Expenditure and Reform to outline the ringfenced measures that carbon tax revenue may be spent on, in each department, in tabular form; and if he will make a statement on the matter. [40386/24]
Darren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source
80. To ask the Minister for Public Expenditure and Reform if he is aware of any instances when carbon tax revenue was not spent on agreed upon ring-fenced measures; and if he will make a statement on the matter. [40387/24]
Darren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source
81. To ask the Minister for Public Expenditure and Reform to outline how his Department tracks the way carbon tax revenue is spent; and if he will make a statement on the matter. [40388/24]
Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source
I propose to take Questions Nos. 78 to 81, inclusive, together.
The response below provides a composite answer to Questions 40385/24, 40386/24, 40387/24, and 40388/24.
In Budget 2020, the Minister for Finance announced that the projected revenue raised by a €6 increase of the carbon tax in 2020 would be ring-fenced to protect those most exposed to higher fuel and energy costs, to support a just transition for displaced workers, and to invest in new climate action. The Revenue Commissioners estimated the total additional tax take would be €90m, which this Department allocated to 10 specific measures across 6 Departments. Details on these allocations are outlined in a Staff Paper published by my Department and available on gov.ie.
With the exception of one such programme (a once-off €20m DHLGH pilot Housing Regeneration programme), these measures continue to be funded from the carbon tax funds on an annual basis (€70m of the overall projected increases). This annual €70m now forms part of the allocations for delivery of existing levels of service on these programmes.
In the Programme for Government - Our Shared Future, the Government committed to increasing the carbon tax to €100 per tonne by 2030, and ring-fencing all resulting revenues raised from the increase in carbon tax rates, estimated to be €9.5 billion, to be spent on 3 objectives:
- Ensure that the increases in the carbon tax are progressive by spending €3 billion on targeted social welfare and other initiatives to prevent fuel poverty and ensure a just transition;
- Provide €5 billion to part fund a socially progressive national retrofitting programme;
- Allocate €1.5bn of funding to encourage and incentivise farmers to farm in a greener and more sustainable way.
| Department | 2020€m | 2021€m | 2022€m | 2023€m | 2024€m |
|---|---|---|---|---|---|
| DECC | 30.5 | 121 | 210 | 299 | 388 |
| DSP | 21 | 69 | 174 | 218 | 262 |
| DAFM | 3 | 23 | 3 | 81 | 113 |
| DTransport | 10.5 | 20 | 20 | 20 | 20 |
| DHLGH | 25 | 5 | 5 | 5 | 5 |
| Total | 90 | 238 | 412 | 623 | 788 |
The climate action and just transitionary measures to which these funds have been allocated is outlined in an annual Budget publication. These are available for download from the gov.ie website:
- Budget 2020: www.gov.ie/pdf/?file=
- Budget 2021: www.gov.ie/pdf/?file=
- Budget 2022: www.gov.ie/pdf/?file=
- Budget 2023: www.gov.ie/pdf/?file=
- Budget 2024: www.gov.ie/pdf/?file=
In total, €951 million has been allocated as part of Budget 2025 to climate action measures and to ensure the most vulnerable are protected from unintended impacts of the tax increase. This represents an increase of €163 million on the amount allocated from carbon tax increases in 2024. Measures, relevant Departments, and the proportional allocation for each is outlined in tabular form below.
Department | Measure Funded | 2025 Allocation (€m) | 2025Additional (€m) | 2024 Allocation (€m) |
|---|---|---|---|---|
DECC | Residential & Community Energy Efficiency | 469 | +89 | 308 |
DECC | Green Climate Fund | 2 | - | 2 |
DECC | Just Transition Fund | 6 | - | 6 |
DSP | Targeted Social Protection Interventions | 306 | +44 | 262 |
DAFM | Incentivising Green & Sustainable Farming | 140 | +30 | 110 |
DAFM | Green Agricultural Pilots | 3 | - | 3 |
D/Transport | Greenways/Urban Cycling | 9 | - | 9 |
D/Transport | EV charging infrastructure | 3 | - | 3 |
D/Transport | Providing Grants for EVs | 8 | - | 8 |
DHLGH | Peatlands Rehabilitation | 5 | - | 5 |
Total | 951 | +163 | 788 |
As in previous years, a number of measures included in the allocation in Budget 2025 represent the continuation of funding for specific measures put in place in Budget 2020, with the revenue raised by the initial €6 increase in the carbon tax from €20 to €26 in that year. Funding for these programmes, totalling €70 million, is included in the total outlined above.
Further details of these allocations are provided in the Budget 2025 ‘The Use of Carbon Tax Funds’ paper published on 1 October 2024, which is available at www.gov.ie/pdf/?file=. The Revised Estimates for the Public Service (REV) 2025 will contain further detail on the subhead level allocations to relevant programmes, and will also be available at gov.ie once published.
Monitoring and oversight of expenditure on programmes in receipt of carbon tax funding takes place through the standard expenditure policies and procedures that are applied to all Government expenditures. As such, all subheads in receipt of funding as a result of increases in the carbon tax are subject to the usual mechanisms which apply to the agreement. This involves the monitoring and reporting of voted allocations as set out in the Public Financial Procedures, which seeks to ensure administrative efficiency and accuracy in public expenditure. It is ultimately the responsibility of the Accounting Officer to ensure funds under their control are spent appropriately. This includes the responsibility for accounting for any underspends against allocations.
No comments