Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I essentially outlined that a budget day paper published by the Department of Public Expenditure, National Development Plan Delivery and Reform outlines the hypothecation of carbon tax receipts. That was a commitment we made, as the Deputy knows, when the tax was introduced. Some €788 million is being allocated as part of budget 2024 for climate action measures. We have a detailed paper. In table 2, a breakdown is provided of all the different elements of how the funding is being provided, including for: the green climate fund; just transition; residential and community energy efficiency; targeted social protection interventions to support families to deal with the cost of rising energy prices; incentivising green and sustainable farming; green agricultural pilots; in the Department of Transport, investing in greenways, urban cycling, and improving the electric vehicle charging infrastructure; and, in the Department of Housing, Local Government and Heritage, measures in respect of peatlands rehabilitation. We have set out in a very transparent way how all of the proceeds are going to be used in that €788 million of hypothecation for 2024 and that is an increase of €165 million over the previous year.

The commitment we have given from the very beginning is that the proceeds from the carbon tax would be reallocated for environmental measures and to support people who are having to deal with rising energy prices. We believe it is the right policy to try to change behaviour over time. Of course, it is complemented by grants and financial supports in respect of home energy such as the Sustainable Energy Authority of Ireland, SEAI, grants. All households will benefit from the electricity credits as well. There is consistency in the policy. We believe it is important that we have a consistent trajectory of carbon pricing over the coming years. It is having an impact in terms of changing behaviour. We acknowledge that for some, the challenge is greater than it is for others.

Deputy Doherty has raised the particular issue of home heating oil. That is why the Government has fully funded the SEAI programme for next year. Ultimately, we believe that is the most sustainable way for families to reduce their energy costs in the long term, making homes warmer and more comfortable through investment in retrofitting. We are providing a substantial amount of funding in the budget to provide for that.