Fourfold increase in carbon taxes to see fuel and energy bills soar
A fourfold increase in carbon taxes is “on the table” for the forthcoming budget, Taoiseach Leo Varadkar has declared.
Major spikes in household energy bills and car fuel will have to occur to fund the shift to renewable energy, the Government is warning.
Mr Varadkar confirmed yesterday that increases in carbon taxes are intended in October, while Energy Minister Richard Bruton said bills will have to rise to end the State’s reliance on fossil fuels by 2030.
Mr Varadkar confirmed under questioning that carbon taxes will feature as part of the budget this year, but rejected the increases could reach €1,500 as forecasted by the Economic and Social Research Institute (ESRI).
Instead, he said the increases would be in line with the Oireachtas Climate Action Committee’s recommendation of €80 per tonne, which is four times the current limit.
Having backed away from introducing carbon taxes in last October’s budget because of a backlash from Fine Gael backbenchers, consumers will be bracing themselves for the extent of the increase this year as Ireland seeks to improve its woeful environmental performance.