Ireland's State of the Environment Report 2024

329 Chapter 12: Environment and Energy Legislation was introduced in 2020 setting a 10-year trajectory of carbon tax increases to bring the charge per tonne of CO 2 emissions to €100 by 2030. While carbon tax has continued to increase, reaching €807 million in 2022, energy taxes have reduced overall since 2017, with reductions in duty on light hydrocarbon products and other hydrocarbon products (Figure 12.11). A phased reversal of these cuts has taken place in 2023 and 2024. Figure 12.11  Energy taxes, 2013-2022 0 500 1,000 1,500 2,000 2,500 3,000 3,500  Duty on other hydrocarbon oil products  Duty on light hydrocarbon oil products  Carbon tax  Public Services Obligation levy  National Oil Reserves Agency levy  Carbon credits  Electricity tax Energy taxes in € millions 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: CSO, 2023 11. Conclusions Meeting Ireland’s statutory obligations to remain within carbon budgets to 2030 and achieve climate neutrality by 2050 requires significant and unprecedented changes to the energy system. Large-scale and immediate GHG emission reductions are needed across the whole energy system (electricity, heat and transport). The ICCA report highlights that well-established ‘no-regret options’ can move Ireland’s energy decarbonisation significantly forward and must be implemented now. These include demand reduction, electrification, deployment of market-ready renewables and low-carbon heating options (e.g. district heating). Ireland’s heating and transport systems remain heavily dependent on fossil fuels, and rapid transformational change is needed in how we heat our homes, deliver our goods and services and transport people and goods. Localised environmental issues relating to air quality are integrally linked with the combustion of fossil fuels for home heating and transport. Progressing heating and transport systems towards using zero-carbon fuels will have a significant beneficial impact on air quality. Retrofitting homes and other buildings is key to reducing emissions and brings multiple other benefits relating to air quality and health. Electrification of home heating through the replacement of solid and liquid fuels with heat pumps is also key to reducing building energy- related emissions. Retrofitting the homes of those experiencing energy poverty should be a priority, as it is crucial for a just transition. Renewable electricity generation is projected to reach up to 80% of electricity generation at the end of the decade as a result of a projected rapid expansion in wind energy and solar power. Continuing this substantial progress is a critical element in Ireland achieving net zero.