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23rd September 2019 | Climate Change, Environment, Press Releases

Government should detail how they will use carbon tax funds – Greens still favour socially progressive carbon dividend

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Responding to comments by the Taoiseach Leo Varadkar that all new revenues raised by carbon tax will be ringfenced to fund climate action initiatives,  Green Party Leader Eamon Ryan said:

“We are asking the government to outline how they intend to use the funds raised from a carbon tax increase.

“Our party has supported a ‘fee and dividend’ model because we know, from ESRI research, it will be socially progressive.

“Fine Gael seem to be changing their position to support ringfencing of the revenues for climate action but have not shown how it will work.

“If they use it for grant supports it will only benefit the better off in our society. We have to make sure this is a just transition where we deliver social justice and ecological justice at the same time.

“Carbon tax is one of the tools that we need to use but it can dominate public debate. The scale and speed of change we need to make requires us to use every tool. Spending carbon tax revenues on climate action can make a substantial contribution but on its own it is not going to be enough. Our whole budget needs to be climate-proofed and not just limited to a debate on how this tax is raised and used.”