Green Party leader and Minister for the Environment John Gormley disclosed details of his "carbon budget" yesterday, and then indicated his intention of exerting pressure on his Coalition partners to introduce a carbon levy on fuel supplies in next year's budget.
Mr Gormley accepted that his carbon budget measures, including changes in the motor tax system and the banning of traditional light bulbs, might not be enough to meet the target of reducing Ireland's carbon emissions by 3 per cent a year over the period 2008 and 2012.
"We are not making it easy on ourselves and there is a danger that we may fail because we have set the bar high," he said. Accepting that the targets would be difficult to achieve without a carbon levy, he committed himself to pushing for one in next year's budget.
A levy would involve a tax on fuel with the highest rates applying to fossil fuels like coal, peat briquettes and heavy oil, with lower rates for natural gas and a zero rate for green energy like wind power.
The Greens failed to convince Minister for Finance Brian Cowen to proceed with a levy in this year's Budget, but Mr Gormley predicted that it would be done in the future. "The Minister for Finance is a very cautious individual and he wants to get it right," he said.
One key measure announced was the banning of traditional light bulbs in favour of the energy efficient type from 2009. Mr Gormley said this would save 700,000 tonnes of carbon dioxide emissions every year and save householders some €185 million a year in lower electricity bills.
The other significant move was a change in the system of car tax to encourage people to use more energy efficient vehicles. Under the new system involving seven car tax bands, a charge of €2,000 a year will be levied on "gas guzzlers", while the tax on the most energy efficient cars will be €100 a year.
SUVs and large-engined luxury cars will draw an annual increase of €500 in motor tax, while energy efficient cars will see a €100 cut in tax.
Fine Gael environment spokesman Phil Hogan dismissed the planned changes, saying there was nothing that had not been announced before and very little in the way of radical proposals.
"There is nothing new that hasn't been announced as a Government plan before the general election. There are no detailed practical measures in agriculture, industry or waste set out by the Minister as to how he is going to reduce emissions," said Mr Hogan.
"The Government fudge on VRT in last year's budget has been replicated this year with motor tax. By delaying the introduction of the motor tax measures until July, Minister Gormley has effectively given a green light to buy 'gas guzzlers' within the next six months. His motor tax plan is also a massive stealth tax, as it will penalise cars that are low emitters with an unjustified 9.5 per cent tax."
Labour environment spokeswoman Joanna Tuffy said: "The Minister has confirmed what was predicted in a European Commission report two weeks ago, that our carbon reductions would be largely bought as opposed to achieved. How green is that way of going about meeting our Kyoto?" she asked.
Prof Frank Convery, chairman of Comhar, the Sustainable Development Council, welcomed Mr Gormley's commitment to introduce such a levy in the lifetime of the Government. "However, every year that passes without a levy is a year lost . . . It is imperative that we introduce this levy in the next 12 months," he said.