Louis O'Hara
Ceist:176. Deputy Louis O'Hara asked the Tánaiste and Minister for Finance to outline the amount of carbon tax collected for the years 2024 and 2025; and if he will make a statement on the matter. [9554/26]
Amharc ar fhreagraTuesday, 10 February 2026
Ceisteanna (176)
Freagraí scríofa
I am advised by Revenue that the amount of Carbon Tax collected in 2024 and the provisional amount collected in 2025 are €1,067 million and €1,176 million respectively. The provisional figure for 2025 may be subject to revision.
I am further advised that Carbon Tax receipts for previous years are published on the Revenue website.
As the Deputy will be aware, additional revenue raised by Carbon Tax rate increases is allocated for expenditure on climate action and just transition measures.
Budget 2026 provided for a €1.1 billion allocation toward such measures, an additional €163 million on 2025’s allocation.
As of Budget 2026, the Government has allocated over €4.2 billion in carbon tax revenue for these purposes since 2020. ESRI analysis consistently shows the lower income deciles are better off as a result of the social protection measures funded by the increased carbon tax.
Analysis undertaken using the ESRI tax and benefit model – SWITCH to simulate the impact of the carbon tax increase and the compensatory welfare package estimates that the net impact of the combined measures is progressive. Half of households are better off due to the measures part-funded by additional carbon tax funds, with households in the bottom four income deciles benefitting the most.
This new spending provides grants that help people invest in the energy efficiency of their home. It provides assistance for our farmers to adapt to greener and more sustainable methods. Critically, the spending protects the most vulnerable in society from the impact of the increases in the carbon tax.
Furthermore, to help alleviate energy cost pressures for households, Budget 2026 extended the 9% VAT rate currently applied to gas and electricity until the end of 2030.
The long-term carbon tax trajectory also sends a clear signal to both consumers and production sectors of the Government’s commitment to decarbonisation. This long-term signalling provides certainty on future carbon tax rates and incentivises investment in low carbon technologies.