ESRI says carbon tax is cheapest way to cut emissions

The Economic and Social Research Institute says introducing a carbon tax is the cheapest way to meet EU targets on climate change.

However, two senior professors from the economic think-tank have told the Oireachtas Climate Change Committee today that Ireland could suffer if it goes it alone on so-called green taxes.

The ESRI says an EU-wide tax on CO2 emissions would ensure that Irish industries, like farming, would not be at a disadvantage compared to other European countries.

The committee heard that cutting emissions would be a long-term process with no quick-fix solution, but action needed to get underway immediately.