Petrol and diesel prices to increase as carbon taxes rise

A €5,000 relief for the purchase of new electric vehicles will be extended to the end of 2023, with higher taxes set to be levied on higher polluting cars.

From January, VRT on cars from bands 9 to 12 will go up 1%, cars in bands 13-15 will go up 2%, and those in the heaviest polluting range will go up 4%, with band 20 vehicles up to 41%.

Car owners will also feel a pinch when they next go to the pumps as petrol and diesel prices are due to a rise in carbon tax.

Diesel will rise by 2.4c per litre, while petrol will go up by 2.1c per litre, averaging at €1.48 and €1.28 for a full tank respectively.

In total, the Environment, Climate and Communications budget for 2022 will be €867m, with four strategic goals laid out.

The first of these is titled "Be a recognised leader in climate action", which will come at a cost of €26m. Under this heading, the department says that it will aim to support projects in the areas most affected by a just climate transition. 

These include the Bord na Mona Peatlands Rehabilitation Scheme. 

The money will also be used to strengthen air quality rules and enforcement, including the first-ever clean air strategy.

Under the goal of transforming Ireland's energy system, €202m of carbon tax revenue will be used to implement the national retrofitting plan, with €10m used for solar panel schemes. 

These schemes will fund energy upgrades for 22,000 home energy upgrades, getting 6,000 homes to a BER of B2. 

There will also be the introduction of a new low-cost loan scheme for retrofitting, the first Offshore Renewable Electricity Support Scheme to advance the offshore electricity generation of the country.

There will also be €40m for supports of the circular economy, including plans for the remediation of landfills and a policy framework for mining and minerals exploration and €18 million for connectivity and communications. 

The latter will see high-speed internet delivered to 700 primary schools and more than doubling the staff in the National Cyber Security Centre from 20 to 45.