Under the revised Effort Sharing Regulations (ESR), Ireland’s target to reduce emissions is set at 42% compared to 2005 levels by 2030. This Regulation covers those sectors of the economy that fall outside the scope of the current EU Emissions Trading System (EU ETS) including transport, buildings, agriculture, light industry and waste.
Under the existing compliance arrangements, Member States can meet their targets through direct emissions reductions, as well as through additional compliance options provided for in the framework. This includes the purchase of allowances from other Member States who have overperformed on their targets. The framework does not provide for the imposition of direct fines or penalties. This approach is intended to enable flexibility among Member States to achieve targets as efficiently as possible. Estimating these costs requires working with significant data limitations as, at this point, there is no established cost for purchase of allowances from other Member States.
Government's focus is on achieving the necessary emissions reductions in Ireland by continuing to invest in transformational measures that will decarbonise our economy. For example, the Commission for Regulation of Utilities (CRU) will oversee investment of up to €18 billion over the five-year period to 2030 in the energy network.
In line with the National Climate Objective, the Government is committed to a just transition to a climate neutral economy by no later than 2050. National climate policy is also founded on the principle of a just transition to a climate neutral economy which endeavours, in so far as is practicable, to maximise employment opportunities, and to support people, including those in rural communities and the agriculture sector, that may be negatively affected by the transition.
A just transition builds on the principles of evidence-based approaches, ensuring that people are equipped with the right skills to benefit from the net zero economy, cost-sharing and equity, and social dialogue with impacted people and communities.
Questions in relation to the setting of the carbon tax should be directed to the Minister for Finance.
