State agency’s alternative to carbon tax

INDUSTRY commitments to reduce carbon emissions in return for tax relief could be more effective than levying a carbon tax, according to the State agency which advises on environmentally-friendly energy policies.

Sustainable Energy Ireland claimed yesterday negotiated energy agreements could reduce carbon emissions by twice that achieved by a tax.

Finance Minister Charlie McCreevy plans to introduce a carbon tax by the end of next year to raise revenue and allow Ireland to meet its commitments under the Kyoto protocols.