The Ministry for Finance of Ireland has announced a €6 annual increase in the carbon tax, as part of a government's commitment of raising the carbon tax price from €20/t in 2019 to €80/t by 2030. The increase will apply immediately for transport fuels but will be delayed for the other fuels until May 2020 after the winter heating season.
This price increase is expected to raise €90m in revenues in 2020, which will be redistributed to protect vulnerable energy consumers, to support a "just transition" in the Midlands and to invest in the low carbon transition. Ireland will invest €21m from the carbon tax increase revenues in raising the fuel allowance for vulnerable households +€56/year) and another €13m in the Warmer Homes Scheme (energy poverty efficiency upgrade).
Ireland's Climate Action Plan Rollout also includes grants to support the transition to electric vehicles (€36m allocated for 2020), a €146m allocation to upgrade buildings, a new waste strategy, and financial support to the installation of residential PV systems and alternative fuels in the heating sector. In addition, the existing 1% diesel surcharge introduced in 2018 will be replaced by a NOx emissions-based charge, that will apply to all cars registering for the first time in January 2020.
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