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Carbon Tax


Social Justice Ireland 
welcomes progress in Budget 2021on carbon tax, and the commitment to ringfence this revenue for sustainability measures.  However we are still a considerable distance from a Just Transtion and the compensation meausures in Budget 2021 are not as comprehensive as they could have been.  

Budget 2021 must be judged by the degree to which it protects people from poverty, equips people and businesses to confront Covid-19 and Brexit, and addresses the climate and environmental crisis. The challenge for Government is to use the fiscal space available to introduce the necessary measures to support incomes and underpin the public health measures to save lives, preserve our economic capacity and prepare for the impact of a no-deal Brexit.  Its response to this challenge in Budget 2021 has been mixed.

'Building a New Social Contract – Policy Recommendations’ contains more than eighty specific policy recommendations that would go a considerable direction towards a new social contract to improve the quality of life and wellbeing of everyone and ensure that a no-one is left behind as our economy and society recovers from the impact of Covid-19.

As we look towards the future and rebuilding our society and our economy we have the opportunity to ensure that our investment strategy reduces carbon emissions, creates a vibrant society and economy, and supports a just transition. Here we outline investment priorities for Budget 2021.

As we look towards the future and rebuilding our society and our economy the new Government must consider how we can ensure that our recovery package and investment priorities post COVID-19 help us build a sustainable society and economy, and also move us towards a just transition and meeting our climate targets by 2030.

If a government is setting environmental goals, it is important that its taxation system supports these goals. There is great scope in Ireland for shifting the burden of taxation away from productive activity and onto activity which reduces social wellbeing, depletes natural resources and biodiversity, harms the environment, and contributes to climate change. The taxes that people and organisations pay should, to the greatest extent possible, be based on the value they subtract by their use of common resources.

Ireland is one of the highest greenhouse gas emitters in the EU and we have the highest levels of emissions from agriculture.  We are failing in the necessary planning, services and infrastructure to ensure communities, towns and villages across all regions can adapt to changes that required to move to a more sustainable future.  Read Social Justice Ireland's Election Briefing on Sustainability for an outline of a number of key challenges facing Ireland and some policy proposals that should be in the next Programme for Government.

Social Justice Ireland welcomes the Budget 2020 decision to increase the carbon tax from €20 per tonne to €26 per tonne. This is the first significant increase in the tax since it was introduced almost one decade ago, and we also welcome the commitment to ringfence the revenue to deal with the transition to a more carbon neutral economy.