Energy Minister to introduce Carbon Windfall Levy
Energy Minister Eamon Ryan today announced that he will shortly be introducing a Carbon Windfall Levy on electricity generators.
The legislation will be introduced as part of the Biofuels Obligation Bill, currently going through final stages in the Oireachtas.
Under the Kyoto Carbon Trading provisions, electricity generators have been provided free carbon credits in preparation for full carbon-trading post-2012.
Generators have been able to earn a monetary return on these credits, earning excess “windfall” profits at the expense of consumers.
The new levy seeks to recover these gains.
“This is an important step in guaranteeing Ireland’s sustainable future,” said Minister Ryan. “As in any fiscal measures you must be careful to ensure that we do not distort the market, or discourage investment, particularly as our single electricity market has been functioning extremely well to date.
“This levy is essential, if we are to reduce Ireland’s overall energy bill. Having discussed it with those in the industry, I am satisfied that it will function effectively.”
