A change being introduced in the coming weeks in line with Budget 2021 will see an increase in charges associated with Carbon tax across the country.
The carbon tax was introduced in Ireland in 2010 and applies to kerosene, marked gas oil, liquid petroleum gas, fuel oil, natural gas and solid fuels.
The rate of carbon tax was based on a charge of €10 per tonne of CO2 emitted from 1 May 2013 to 1 May 2014, however the rate was then increased to €20 per tonne from 1 May 2014.
It was announced in Budget 2021 that the carbon tax on fuel would see a further increase by €7.50 from €26 per tonne to €33.50 per tonne starting in May.
This increase applied to auto fuels from 13 October 2020 and will now also apply to solid fuels from 1 May 2021.
Carbon tax will increase by €7.50 every year until 2029 and then by €6.50 in 2030, bringing carbon tax to €100 per tonne by 2030.
€100 million of the carbon tax revenue collected will be invested in increasing the energy efficiency of Irish homes, including expanding the Warmer Homes Scheme and providing for new energy efficiency schemes such as the National Home Retrofit Scheme.
The Better Energy Warmer Homes Scheme aims to improve the energy efficiency and warmth of homes owned by people on low incomes and is operated by the Sustainable Energy Authority of Ireland (SEAI).
The scheme provides funding for:
Attic insulation
Draught-proofing
Lagging jackets
Low-energy light bulbs
Cavity wall insulation
Energy advice
The increase in carbon tax comes into play from 1 May 2021.
