Delay in carbon tax gives Government chance to make it fair

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Carbon tax rise welcome, but one small piece of the jigsaw

  • Ringfencing must be put into law, and should be all carbon tax revenue not just the increase
  • Rate increases to 2030 must be guaranteed by legislation
  • Delay to application on home heating fuels welcome, due to lack of preparation to protect those vulnerable to the change
  • Minister must now sit down with SVP and other groups to figure out how best to protect those most affected and enable them to reduce their dependence on fossil fuels.
  • 10% increase in Fuel Allowance welcome - should be rebranded as Carbon Tax Cashback in 2020

Appointment of a Just Transition Commissioner welcome but ...

  • Commissioner needs to have authority and resources to negotiate a deal between the companies and the workers
  • All stakeholders, including local communities and environmental groups need to be involved in the process
  • The funds for retrofitting and community schemes in the midlands not enough yet to offset job losses in peat

Commenting, Oisin Coghlan, Director of Friends of the Earth said

"The delay in applying the carbon tax increase to home-heating gives Government chance to make it fair.

"Moreover, carbon tax is just one small piece of the climate action jigsaw. The Government needs to do more work to paint the big picture of a Just Transition to zero pollution.

"Like all complex jigsaws it is best done in collaboration. The Government needs to sit down with the Society of the Vincent De Paul and other stakeholders to discuss how those most affected by incremental carbon tax increases are protected and enabled to reduce their dependence on fossil fuels.

"The new Just Transition Commissioner must sit down with all stakeholders to chart a path away from peat to sustainable jobs in the midlands as fast as possible.

"The promise to ringfence carbon tax revenue has to put into law and should include the whole €500 million not just this year's increase.

"The plan for incremental increases in the carbon tax from now to 2030 must be underpinned by legislation. Households and businesses can't make long-term spending and investment decisions based on one speech from a minister months before a General Election"

Our pre-Budget briefing is here.

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Climate Change Energy