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Minister for the Environment John Gormley today announced a new system of calculating motor vehicle tax, which he said will give motorists the incentive to buy more environmentally friendly cars from July 1st next year. Gormley presented a "Carbon Budget" in the Dαil, which identifies how the State can reduce harmful CO2 emissions to counteract climate change, to protect the economy and to meet its international obligations. He said climate change "is the greatest challenge facing humanity over the coming century". "The provisional estimates are that total emissions in 2006 were just under 1% lower than in 2005, a welcome reduction following the previous years increase," Gormley said. The Minister announced that with effect from July 1st next year, there will be a "fundamental change" in the manner in which motor tax is charged for all new cars and imported cars. Tax will in future be charged solely on the emissions and the system will be rebalanced in favour of cars with lower emissions, he said. Seven CO2 'bands' from A-G will determine the rate of tax payable on a vehicle. Gormley said there will be a "commonality of approach" between the motor tax and VRT systems. There will be a mandatory labelling system for cars based on their emissions levels. This will be accompanied by a public information campaign which will promote the purchase of fuel efficient cars, the Minister said. "I see the proposed improvements in vehicle labelling as a positive step in enabling Irish motorists to make more informed choices in buying new vehicles and I look forward to support from the motor industry in making its introduction a success." Motor tax rates will be graduated as one moves up the CO2 bands.
"The clear objective of this new motor tax system is to influence the purchasing decisions of consumers by rewarding the buyers of low-emitting cars and charging a premium on less efficient vehicles," Gormley said. Gormley also announced he will develop a national energy efficiency standard for lightbulbs, which will see an end to the use of incandescent bulbs by January 2009. The changes would result in emissions savings of up to 700,000 tonnes of carbon dioxide per year from residential lighting alone. He estimated it would also save consumers about 185 million per year in electricity costs. "The Carbon Budget marks the beginning of a new era. It is an era in which climate change moves to the heart of Government decision-making. It puts our responsibilities to tackle climate change on an equal footing with our responsibilities to manage the economy," he said. "It recognises that the economy and the environment cannot be separated; and that the greatest risk to the economy is climate change." Motor tax was increased in yesterday's budget, for the first time since 2003, by 11% for motor vehicles over 2.5l and 9% for under 2.5l. The Government proposes to produce a carbon budget each year to outline how it will achieve its aim of reducing greenhouse gases by 3% for the following 12 months.
[1] Figures for 1990 and 2005 include revisions compared to the inventory submitted to the EU and UNFCCC by the EPA in 2007. These revisions will be incorporated in the 2008 submission to the EU and UNFCCC. [2] The provisional inventory figures for 2006 may be subject to amendment prior to submission to the EU and UNFCCC. [3] National Climate Change Strategy [4] Adjusted projection less reduction from measures in Column E Summary of new measures The carbon budget table shows a preliminary indicative additional saving of 600,000 tonnes from measures announced since the publication of the National Climate Change Strategy. These savings will be achieved due to:
The overall effect of all of these additional measures is to deliver a total annual saving of 600,000 tonnes on average each year over 2008-2012, bringing projected annual net emissions down to 65.6 million tonnes. This has two important consequences. IBEC welcomes Carbon Budget but measures need to be costed RELATED Finfacts Climate Change Reports - access on right-hand column of home page © Copyright 2007 by Finfacts.com |
