Climate Inaction Could Cost The Irish Taxpayer €26bn
Climate Inaction Could Cost The Irish Taxpayer €26bn
Text: Izzy Copestake
A new report has shown climate inaction is more costly than climate action.
A new report has revealed that climate inaction could be far more expensive for Ireland than proactive climate measures. Two Government advisory councils, the Irish Fiscal Advisory Council and the Climate Change Advisory Council, have warned that Ireland must take urgent action to avoid “staggering” financial penalties for missing its 2030 climate targets.
The European Union has set legally binding targets for member states to reduce greenhouse gas emissions by 2030. Ireland is committed to cutting emissions in key sectors, including transport and agriculture, by 42%. Additionally, Ireland must increase renewable energy generation and improve land and forestry management to absorb carbon emissions. If these targets are not met, Ireland will be required to purchase carbon credits from other EU countries to offset excess emissions. These credits act as a form of compliance mechanism, allowing countries that exceed their targets to sell their surplus to those that fall short.
The report estimates that Ireland could face a bill of between €8 billion and €26 billion to purchase carbon credits from other European Union member states if sufficient climate measures are not taken. Ireland is set to overshoot its 2030 greenhouse gas emissions target for transport, buildings, small industry, waste, and agriculture by around 57%.
However, this is not a completely lost cause. The report suggests that allocating around one-tenth of planned capital spending until 2030 toward climate action could be enough to address the issue. Key measures include upgrading the electricity grid, reducing the cost of 700,000 electric cars to below €15,000, expanding EV charging infrastructure, increasing forestry support, and rewetting wetlands. The report states that these investments would not only cut emissions but also provide long-term benefits for Irish households and businesses.
“We will have to buy credits from other member states, which will cost us an enormous amount of money, Marie Donnelly, Chair of the Climate Change Advisory Council, on RTÉ’s Morning Ireland. “One of the reasons why we have come forward with the report today is to signal this concern and to reinforce the message that we can reduce these costs by spending the money today which will give the benefit to Irish people, society and economy and allow us to make the transition to a sustainable society faster.”
The report makes it clear that while climate action requires significant investment, the cost of inaction is far greater. If Ireland fails to meet its climate commitments, the taxpayer will bear the brunt of huge penalties. However, with action Ireland can avoid these fines, invest in a cleaner future, and strengthen its economy in the process.
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