Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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65. To ask the Minister for Public Expenditure and Reform the percentage of carbon tax revenue that was allocated to agriculturally based programs in 2024 and to date in 2025; and if he will make a statement on the matter. [30796/25]

Jack Chambers (Dublin West, Fianna Fail)
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In both 2024 and in 2025, as per Sections 27, 28 & 29 of the Finance Act 2020, the carbon tax increased by €7.50 per tonne. These increases are phased, with auto fuel changes being introduced annually in October, and changes for all other fuels the following May to allow for a lower rate on home heating fuels during the winter heating season.

The Programme for Government commits to maintaining this schedule of annual increases to 2030 and using the resulting revenues raised to support climate action measures and to ensure the most vulnerable are protected from unintended impacts of the tax increase. This includes funding for retrofitting and agri-environmental schemes, alongside targeted social welfare and other initiatives to prevent fuel poverty and ensure a just transition. These measures are designed to be progressive. Analysis at each budget has shown that households in the lowest five income deciles are better off due to the measures funded from additional carbon tax revenues.

In 2024, €788 million was allocated from carbon tax revenues in total, and in 2025, this allocation grew to €951 million. This represented an annual increase of €163 million on the amounts funded from the Carbon Tax increases in 2023 and 2024.

In line with the Government’s commitment to allocate funding over this decade to encourage and incentivise farmers to farm in a greener and more sustainable way, at Budget 2024, the Department of Agriculture, Food and the Marine was allocated €113 million funded from increases in the Carbon Tax, 14% of the total annual allocation. At Budget 2025, this amount was increased to €143 million, 15% of the total annual allocation.

The amounts part-fund the Agri-Climate Rural Environment Scheme (ACRES) and to continue prior commitments on green agriculture pilot projects. These allocations support farmers as they undertake a range of actions which will result in improved outcomes on biodiversity, climate, air and water quality.

From 2020 to date, the Department of Agriculture, Food and the Marine has been allocated a total of €366 million in carbon tax funding for these measures, including as part of Budget 2025.

My Department issues an annual publication on Budget Day titled The Use of Carbon Tax Funds, which contains further detail on these allocations, and includes information on the programmes funded from these amounts. All previous versions of this report are available on my Departments website.