INPACT: Investigating National Policy Impacts on Atmospheric Climate Targets Back to Main dashboard

Ireland Greenhouse Gas Policy Impact Explorer

Explore greenhouse gas emissions, atmospheric pollutants, climate policies and policy effectiveness across Ireland.

Funded by Funded by the Environmental Protection Agency (EPA)
Ireland Climate Policy Timeline Greenhouse-gas mitigation policies in force 2000–2023

All policies / Industry / IRL_P0005

Carbon Tax

Instrument affecting the Industry sector, using a pricing mechanism; in force since 2010.

Industry Pricing Instrument Source: Both OECD match: Exact Selected as: OECD anchor
2010–start year; still open
0.19policy intensity in 2023
0.19peak intensity, 2000–2023
846 ktreported CO₂e per year (ex-post assessment, 2024), used for selection only

About this policy

The Carbon Tax incorporates a price signal for carbon in the non-ETS sector, specifically fuels used for heating and transport. The tax applies to petrol, diesel, kerosene, marked gas oil (for agricultural use), Liquid Petroleum Gas (LPG), fuel oil, natural gas, coal and commercial peat. This measure reflects an estimate of the reduction in energy consumption resulting from carbon tax using short term price elasticities and energy projections under the With Existing Measures scenario.

Official reference

Key milestones

  1. 2009Carbon tax applied to petrol and diesel at €15 per tonne CO₂ (December).
  2. 2010Extended to other liquid and gaseous fuels (non-transport fuels) at €15 per tonne (1 May).
  3. 2011Rate raised to €20 per tonne on motor fuels (7 December).
  4. 2012Rate raised to €20 per tonne on other fuels (1 May).
  5. 2013Solid fuels (non-transport fuels) brought within the carbon tax, phased in at a lower initial rate.
  6. 2019Rate raised to €26 per tonne on motor fuels (9 October).
  7. 2020Rate raised to €26 per tonne on other fuels (1 May); the Finance Act 2020 legislated annual rises of €7.50 towards €100 per tonne by 2030.
  8. 2021€33.50 per tonne on non-transport fuels (1 May).
  9. 2022€41.00 per tonne on non-transport fuels (1 May).
  10. 2023€48.50 per tonne on non-transport fuels (1 May).

Contextual milestones compiled from official sources. They are not used in the index.

About this type of instrument: carbon pricing: taxes and emissions trading

Emissions impose an external cost that market prices do not reflect. A single carbon price corrects this. Each emitter cuts emissions wherever doing so costs less than the price. So the overall cut is achieved at the lowest total cost. It also rewards continuing innovation.

Strengths
  • Cost-effective allocation of abatement across emitters
  • Continuous incentive to innovate
  • Generates revenue that can offset distributional effects
Limitations
  • Historical price levels were low relative to estimated social costs
  • Exemptions and free allocation weaken the signal
  • Short-run demand for fuels is price-inelastic
  • Regressive effects unless revenue is recycled

Measurement in this dataset. Implementation uses OECD price indicators (carbon-tax rate by sector, ETS price, aviation pricing). Pricing rows are split into those inside the EU ETS and those outside it (covered by the EU Effort Sharing Regulation, ESR). Bindingness is scored 0.75 (price or statutory obligation).

Read the full guide to pricing instruments

Year by year

Filled markers use a matched OECD score; hollow markers use assumed timing. Shaded bands show the policy's status. Select a year on the chart or the slider to see how its intensity is built up.

Source records in the EEA registry

All EEA records linked to this policy. Records under the "with additional measures" scenario describe planned extensions; they are retained for traceability but are not treated as historical policy.

PaMName as reportedStatusScenarioPeriodEx-post kt
5Carbon Tax (With Existing Measures)ImplementedWith existing measures2008846
46Carbon Tax (With Additional Measures)PlannedWith additional measures2025–

Data-quality notes

Methodological notes recorded for this series, grouped by theme.

Selection context

  • A multi-sector reported saving was assigned once, to the primary sector, for ranking only.
  • Policies were selected using recent (2024–2030) assessments, which can introduce retrospective selection bias.
  • An unallocated multi-sector saving was excluded from sector ranking.

Scoring conventions

  • The unweighted equal-weight index remains positive before the policy starts; use the gated version for timing analysis.
  • Bindingness is a normative score from the study rubric, not a measure of observed compliance.
  • Coverage is an ordinal scope score, not a measured share of activity or emissions.

Timing assumptions

  • The policy has no reported end date; its status after the reporting date is reconstructed as continuing.

Source conflicts

  • Sources disagree on a date; the conflict is documented and the selected date is justified.

Sources

  1. European Environment Agency. Reporting on national policies and measures, Ireland (report 1849), PaM 5. https://pam.apps.eea.europa.eu/
  2. OECD. Climate Actions and Policies Measurement Framework (CAPMF) database, Ireland, 1990–2023. https://data-explorer.oecd.org/vis?df[ag]=OECD.ENV.EPI&df[id]=DSD_CAPMF@DF_CAPMF (accessed 25 September 2026)
  3. Houses of the Oireachtas. Ministerial answer on carbon tax commencement. https://www.oireachtas.ie/en/debates/debate/dail/2010-06-03/42/ (accessed 25 September 2026)
  4. Houses of the Oireachtas. Ministerial answer on carbon tax. https://www.oireachtas.ie/en/debates/question/2010-05-25/section/36/ (accessed 25 September 2026)
  5. Revenue Commissioners. Solid Fuel Carbon Tax overview. https://www.revenue.ie/en/companies-and-charities/excise-and-licences/energy-taxes/solid-fuel-carbon-tax/index.aspx (accessed 25 September 2026)