August 25, 2019
News

Householders could be hit with annual €3,000 carbon tax bills

LOCAL householders could face annual carbon tax bills of €3,000 unless the Government introduces a raft of measures to reduce emissions and tackle climate change.

The figures have emerged in a new analysis from the State’s think tank, the Economic and Social Research Institute (ESRI). It outlines how the carbon tax will have to increase from €20 per tonne today to between €300 by 2024 and €470 by 2030 if Ireland is to meet its legally binding reduction targets and avoid massive fines.

If imposed, the changes would mean hard-pressed householders across the county could face significant increases in home heating bills and motoring costs.

The average emissions per household from energy use stands at 9.7 million tonnes. When the tax is levied at €20 per tonne, the total paid by households is €194. However, if this tax rate is increased to €300 it will total €2,910. If it is increased to €470 the total comes to €4,559.

Irish carbon emissions are among the highest in the EU. According to a recent Sustainable Energy Authority of Ireland (SEAI) survey, most energy use in a typical Irish home is for heating, followed by water heating.

Ireland is required to reduce carbon emissions by 20pc over 2005 levels by 2020 to comply with EU rules. It is not expected to reach this target, and the European Commission will likely impose fines or force the State to buy permits to compensate at cost of millions of euro.

The new ESRI analysis, using the ‘Ireland, Environment, Energy and Economy Model’ (I3E) suggests that without new policies, dramatic carbon hikes will be required to avoid fines.

 

 

 

 

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