Carbon tax

Introduction

In 2010 a carbon tax was introduced in Ireland. The carbon tax applies to kerosene, marked gas oil, liquid petroleum gas, fuel oil, natural gas and solid fuels.

The rate of carbon tax from 1 May 2013 to 1 May 2014 was based on a charge of €10 per tonne of CO2 emitted by the fuel concerned. The rate increased to €20 per tonne with effect from 1 May 2014.

The Finance Act 2020 provided for annual increases in carbon tax of €7.50 per tonne, up to 2030.

Budget 2021 included an increase of €7.50 from €26 per tonne to €33.50 per tonne. The increase applied to auto fuels from October 2020 and to solid fuels from May 2021.

Budget 2022

A further increase of €7.50 was announced in Budget 2022, from €33.50 to €41.00 per tonne of carbon dioxide emitted. The increase applies from 13 October 2021 for auto fuels and 1 May 2022 for all other fuels.

Page edited: 12 October 2021