FG: One third of money raised from carbon taxes to be ringfenced for insulating old homes

Fine Gael have promised that a third of money raised from carbon taxes will be ringfenced for insulating old homes.

Outlining their climate change policies for the general election, the party said the €2bn would be put aside specifically for retrofitting houses.

“This builds on what we have done, particularly in Budget 2020. We will ring-fence one third of the €6bn carbon tax revenue for retrofitting, meaning a total investment in retrofitting homes to €5.8bn,” explained Climate Minister Richard Bruton.

“This will not only reduce the country’s emissions by one third by 2030 but also upgrade 500,000 homes,” he added.

With the election shaping up to be about climate concerns and the environment, parties are battling for the so-called 'green' vote.

A number of parties have agreed to raise carbon taxes incrementally, moving towards €80 a tonne by 2030.

Fine Gael are also pledging to use some of the carbon tax funds to support cycling facilities and lanes.

Finance Minister Paschal Donohoe explained:

“Cycling will be central to transport with €600m of the carbon tax ring-fenced for it.”

Mr Donohoe also attacked other party's proposals on climate change, highlighting how the Green Party were split on the issue of carbon taxes while Sinn Féin were avoiding the levies altogether.

Data courtesy of The Irish Times

However, parties running candidates also agree that some areas which have relied on carbon-heavy industries need extra supports.

This includes areas of the midlands, which are reliant on peat production for employment.

Fine Gael's Laois Offaly Candidate Marcella Corocoran-Kennedy outlined details of plans to support workers impacted by de-carbonisation of the economy.

“Fine Gael will use the proceeds of the carbon tax to invest an additional €244 million to support the transition away from peat burning in the Midlands over the next five years. This is on top of €116 million which we have already committed.”