Minister for Finance Paschal Donohoe said in this Tuesday's Budget announcement that he wanted to put Ireland on "a trajectory to increase the carbon tax until 2030". However, he stopped short of announcing an increase in the tax next year.Amount: €200mThe carbon tax on motor fuels, heating oil and solid fuels such as coal and briquettes will stay at €20/t of CO2 emissions. The Climate Change Advisory Council had recommended a minimum of €30/t, which would have added €200m to the tax take at current consumption levels.The freeze in the carbon tax for another year means fuels, including diesel, won't see a corresponding price increase. It also means that renewable energy, including the potential development of farm-based biogas and solar power, will remain less competitive when compared with fossil fuels.
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