Carbon tax will fund climate action

All additional money collected from carbon taxes is to be ring-fenced for climate action and a just transition, the Taoiseach is due to tell the UN Climate Summit. The Government has already indicted that carbon taxes will be increased by as much as €10 in next month’s budget.

However, Finance Minister Paschal Donohoe had been mulling over a rebate system or the option of pumping the funds back into environmental measures. The second option had been favoured by Fianna Fáil, which has called for specific legislation to ring-fence revenue collected through carbon taxes.