Carbon Tax (Ireland)

A carbon tax at a rate of €15 per tonne was introduced on fossil fuels in December 2009. The tax applies to petrol and auto-diesel with effect from midnight, 9 December 2009; and from 1 May 2010 to Kerosene, Marked Gas Oil, Liquid Petroleum Gas (LPG), Fuel Oil and Natural Gas. The application of the tax to coal and commercial peat is subject to a Commencement Order. Exemption from the tax applies only to participants in the EU Emissions Trading Scheme (ETS) in respect of fuels so covered. On that basis, electricity is not covered by this tax.

The overall expected effect on households is €2-€3 per week and the tax is estimated to raise €330M per annum. Accompanying measures announced are measures aimed at improving the energy efficiency of low-income households.

References

http://www.budget.gov.ie/Budgets/2010/Summary.aspx

http://www.budget.gov.ie/Budgets/2010/Documents/Annexes%20to%20the%20Summary%20of%20Budget%20Measures%20Final.pdf