skip to main content

Green Party express shock over carbon tax reversal

Eamon Ryan said putting off the day when we take action on climate change was going to cost us dearly
Eamon Ryan said putting off the day when we take action on climate change was going to cost us dearly

The leader of the Green Party has said there is shock within the environmental community over the Government's decision to row back on plans to increase the carbon tax.

Speaking in the Dáil, Eamon Ryan said more than anything people are shocked by the "signal that went out today as to this Government's attitude to climate change."

"It was the story around this carbon tax being pulled because the Independent Alliance were unhappy with it, and Fine Gael took the political calculation that they would gain electorally rather than lose, that they pulled it," he said.

"I think that was a shocking decision"

Mr Ryan said while the carbon tax was not the key measure to take action on climate, "the fact that it was dumped sends a signal which seems a symbol of the Government's entire outlook and approach to the whole climate change issue."

He said putting off the day when we take action was going to cost us dearly and was "a terrible mistake".

The decision comes a day after the release of a report from the world's leading climate scientists who said that countries must take "unprecedented" action to slash carbon emissions to zero by 2050 and limit dangerous global warming.

A coalition representing environmental organisations has also said it is shocked by the Government's decision to row back on plans to increase the carbon tax. 

In a statement, the Environmental Pillar said it was "deeply concerned by this last minute u-turn". 

It said an increase in the carbon tax is vital in order to tackle out of control emissions, protect health and environment, and bring in additional revenue.

"The decision sends a very clear message to the world and Ireland's people about the government's lack of commitment to tackle out of control emissions and "preserve our planet for future generations to come," the pillar said.

Friends of the Irish Environment has also criticised the Government for not increasing the carbon tax. 

Its spokesperson Sadhbh O'Neill said fiscal instruments are vital tools in effective climate policy.

She said the minister "was myopic in calling Brexit the 'political challenge of a generation'. That role is reserved for climate change".

Following the news that the carbon tax would not be increased, the decision was called a "giant two-fingers" to the Paris Agreement.

Oisin Coghlan, Friends of Earth Ireland director, said: "The Government's u-turn on the carbon tax is a giant two-fingers to younger generations who will face climate chaos unless we act to drastically cut pollution.

"A two-fingers to everyone under 35, a two-fingers to the Paris Agreement and a two-fingers to the hundreds of millions of people already living with the devastating impacts of climate change in Africa, Asia and Latin America," he said.

"The carbon tax is not a silver bullet. It is essential but not sufficient. But it does incentivise every other investment decision towards cleaner, less polluting options. And it can be done without penalising rural households or lower income families," added Mr Coghlan.

Chair of the advisory council, Professor John FitzGerald, said that carbon tax in Ireland was insufficient to achieve the national climate change objectives.

"Any increase in carbon taxation should be accompanied by measures to address negative impacts on poorer households," he said.

"Carbon tax is a key component of transition to a low-carbon, climate-resilient and environmentally sustainable economy.

"Budget 2019 is a missed opportunity to implement the necessary price signal for Ireland's transition," he added.

But OFTEC Ireland, the organisation that represents the liquid fuel heating industry, has welcomed the news that there is to be no increase in carbon tax. Kerosene is used by around 800,000 homes in Ireland as the main fuel source, they said.

In today's Budget speech, the Minister for Finance said he would introduce a new accelerated capital allowance scheme for gas-propelled vehicles and refuelling equipment.

Paschal Donohoe said this was designed to encourage the take-up of these vehicles as an "economic and environmentally friendly alternative to diesel".

The minister also said the country will no longer buy diesel-only buses for the urban public service obligation bus fleets after next July.

He also said VRT relief for hybrid vehicles was being extended until the end of 2019. 

According to the Minister, one in every €5 in the National Development Plan will be devoted to addressing climate change, which is aimed at cutting carbon emissions up to 2030.

The Department of Communication, Climate Action and Environment will invest over €164m in targeted measures to achieve the country's energy efficiency and renewable energy objectives, the minister said.

Mr Donohoe said the country will join the Paris Collaborative on Green Budgeting.

This will see the development of new and innovative ways of embedding climate change in the budgetary process. 

He also noted that the National Treasury Management Agency will shortly issue the country's first Green Bond, which will broaden the funding base for the country's debt.