Intense debate is likely over the recommendations of a new report on reducing greenhouse gases. It calls for a new gas-fired station to replace the existing coalfired station at Moneypoint, as well as the phasing out of peat for power generation and the introduction of a range of new energy measures.

Overall, the measures would be likely to cost the exchequer £1£1.5 billion to implement over a 1012-year time period. Rebuilding Moneypoint would be likely to cost £250 million. Other costly measures include the building of a new gas pipeline between Ireland and Britain which would cost over £200 million.

At a time when support from EU funds will be falling, the report, to be published shortly by the Minister for the Environment, Mr Dempsey, will raise the debate about what should be done to meet international commitments to reduce greenhouse gas emissions and who should pay.

The unpublished study, seen by The Irish Times, was carried out by Environmental Resources Management, an Oxford-based consultancy, in association with Byrne O Cleirigh and the Economic and Social Research Institute. It concludes that existing measures to curb the greenhouse gas emissions blamed for causing climate change are inadequate.

It also states that the imposition of carbon taxes would be another "least cost" option which would help Ireland to meet its obligations to curtail CO2 emissions.

The consultants concede that it would impose extra costs on certain sectors of the economy. However, they say these could be mitigated by using the revenue to reduce PRSI. Business lobby groups would be likely strongly to oppose the group and argue that it would deter inward investment.