[article] McCreevy says no to carbon tax.

mike65

This from politics.ie

The Minister for Finance, Mr Charlie McCreevy, T.D., announced today that the Government has concluded its examination of carbon energy tax proposals and has decided not to introduce such a tax.

“After an extensive public consultation process, the Government has concluded that a carbon tax is not an appropriate policy option. Instead, we will intensify action on the non-tax measures under the National Climate Change Strategy”. The Minister added that “the Government is fully committed to the Kyoto Protocol and the international response to combat climate change and that Ireland will meet its greenhouse gas emissions reduction target under the Protocol. The carbon energy tax as proposed had been just one element of the Government’s approach to meeting Ireland’s commitment under the Kyoto Protocol to reduce emissions of CO2 – the overall reduction required is of the order of 9 million tonnes per annum and the direct effect of the carbon tax would have amounted to a possible maximum reduction of just over 0.5 million tonnes. This modest contribution will be replaced by alternative measures, including support for emissions abatement mechanisms such as energy efficiency initiatives and also the purchase of additional carbon emission allowances on the international market. “A lot of work has gone into examining how a carbon energy tax could be implemented and its likely effects in environmental, economic and social terms”, said the Minister.

“We concluded that the environmental benefits would not justify the difficulties that would arise, particularly for households, from the introduction of such a tax. Furthermore we cannot ignore developments in the international oil market. The recent price increases reflect the ongoing supply and demand situation in the oil market. In this situation, the resultant increase in the real price of energy products will, in any event, give an enhanced incentive to energy conservation.” The rationale behind a carbon tax was to change the relative price of fuels based on carbon emission, thereby altering consumption patterns – to encourage energy efficiency and improve environmental quality. A carbon tax would have applied at a relatively low level to all carbon based fuels, including peat, coal, heating oil, diesel, petrol, natural gas and LPG. Revenue raised from the tax would be recycled and used for a range of purposes, including measures to help alleviate the effects on the poorest in society. In the public consultation process over half of those who expressed a view on the carbon tax were against it including a number of significant representative bodies. Even many of those who had no difficulty with a carbon tax in principle sought exemptions for various sectors and purposes. Any such tax, if imposed, would have to take some of these issues on board.

A carbon tax would have involved a range of compensation, recycling and tax abatement measures. Despite these measures, it would be likely to have some adverse economic and social effects that would not be fully dealt with by compensatory measures. In addition, it would impose price increases on many products already suffering sharp increases and would largely raise revenue from products already subject to existing excise duties and where a new tax is not specifically necessary to increase tax rates.

The Government’s National Climate Change Strategy provides a broadly-based framework for achieving greenhouse gas emissions reductions in the most efficient and equitable manner while continuing to support growth and prepare for the more ambitious commitments that will be required after 2012. Among the key measures in the Strategy are switching towards less carbon-intensive fuels, expanding renewable energy, promoting greater energy efficiency in transport, industry and construction and a range of measures to reduce emissions from agriculture. The Strategy will continue to underpin the Government’s approach to meeting its climate change commitments.

Mike.

Typedef

The government are great at the sound bytes "the Government is fully committed to the Kyoto Protocol and the international response to combat climate change and that Ireland will meet its greenhouse gas emissions reduction target under the Protocol".

Hmm, I wonder how the Government is going to do that, since it hasn't done a damn thing in real world terms to encourage it's citizens to produce 'less' carbon.

Mystic vibes? Sound bytes? Last time I checked this country had already far exceeded it's Kyoto protocol carbon limits and rather then face a fine, the rumour mill had it that, the government was considering buying carbon points from Canada or one of our Nordic neighbours.

Sure *buying* carbon credit would avoid a fine... but, it wouldn't live up to our protocol duties.

I think this government is too paralyised by fear of annoying the business community in Ireland and abroad, to take any significant action on environmental issues and instead, I think we will have to wait for a FG/Labour/Green coalition, before we'd see any sort of progressive action taken on the environment.

Another popular soundbyte the Government is fond of is increasing Ireland's Wind Energy production to 13% over the next ten years. 13% is tiny compared to what we should 'already' be producing and, rather then take some good example, as has been set by the German government and enact law, which obliges the State to buy 'Green' energy from anybody who produces it, the Government is resting on it's soundbite laurals and waiting for "Eirtricity" or a similar company to backup the government's lurid foundationless rhetoric.

At least... that's the way I see it.