Green Paper may herald increased taxes on energy use

THE case for new energy taxes will be considerably strengthened with the publication by the Government later today of a Green…

THE case for new energy taxes will be considerably strengthened with the publication by the Government later today of a Green Paper on sustainable energy, which spells out options for reducing energy consumption, particularly in transport and the home.

The Minister of State at the Department of Public Enterprise, Mr Joe Jacob, is due to issue the discussion document.

It focuses on measures to counteract excessive carbon dioxide emissions.

The Republic is showing every indication of failing to meet its obligations under the Kyoto protocol on greenhouse gases, based on current energy usage.

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The State is committed to limiting emissions to 13 per cent above 1990 levels up to 2010. Current growth rates suggest they will be up by as much as 28 per cent.

With a booming economy, consumers are investing more in energy-consuming goods, which is leading to big increases in residential electricity consumption, while more and bigger cars are on the roads, resulting in increased fuel use.

Taken with the Department of the Environment's national greenhouse gas abatement strategy, due to be published shortly and understood to recommend a series of green taxes, notably on petrol and diesel, the Minister for Finance, Mr McCreevy, may be impelled to introduce more penal tax measures to curb energy use in the forthcoming Budget. The Minister for the Environment, Mr Dempsey, has accepted that such measures are necessary.

Mr Jacob, who has responsibility for energy, recently warned: "Ireland's increasing levels of carbon dioxide will only be tackled if consumer energy use can be reduced."

While this includes electricity, much of the document considers methods of curbing petrol and diesel use, as they are such a large source of carbon dioxide, the gas which contributes most to Ireland's greenhouse gas problems.

Kevin O'Sullivan

Kevin O'Sullivan

Kevin O'Sullivan is Environment and Science Editor and former editor of The Irish Times