Fresh data released to Aontú TD for Mayo, Paul Lawless, has revealed that currently the Climate Action Fund is in surplus by a quarter of a billion euro, despite the government reducing fuel taxes.
Deputy Lawless said: “The National Oil Reserves Agency (NORA) Levy was established a number of years ago and is supposed to be spent on ensuring Ireland always has a reserve of oil in case of emergency. However, far more money is being generated through that tax than is necessary for the reserve, so the majority of funds generated each year are transferred into the Climate Action Fund.
“What my Parliamentary Question today has exposed is that the Climate Action Fund is still in surplus to the tune of a quarter of a billion despite the income stream to that account having been cut off with the pause of the NORA levy which set in in April”.
Deputy Lawless continued: “The Nora levy adds 2 cent to the cost of each litre of petrol or diesel, but the levy was removed during the fuel crisis. The government plans to restore the NORA Levy, and hike up fuel costs in six weeks time, arguing that they need the fuel taxes to fund climate measures. My data today pours cold water on that entire narrative.”
“The government does not need the levy – they have proven themselves unable to spend the money currently in the account, and despite cutting off the income supply the account is still overflowing with money”.
“I think as we face into the budget we need a degree of honesty from the government – they can’t keep saying ‘we can’t afford X because we’ve reduced the fuel taxes’. They need to be honest with regard to the figures – they are going to take in more in carbon taxes and more in VAT on fuel and energy than last year despite their reductions, and this particular fund into which some of their fuel tax goes is overflowing with money. The government is not running out of money, therefore the rush to increase fuel taxes in the coming weeks is completely unjustified”, concluded Lawless.
Minister Darragh O’Brien said that the Climate Action Fund (CAF) “is a cornerstone of climate action funding in Ireland and, to date, has funded a range of important initiatives, including over 1,500 community-based projects supported through local authorities; Irelands’ first operational district heating system in South Dublin, using “waste heat” to heat public buildings and homes; and the largest nationwide EV charging network (ESB eCars) and the EV scrappage scheme.
“To date, the total amount of funding transferred from the NORA levy to the CAF amounts to €493m,” he said. “That includes: €124m in 2021; €92m in 2022; €80m in 2023; €100m in 2024; and €97m in 2025,” he said.
“As part of recent measures taken by Government to address the affordability of fuel, the NORA levy has been temporarily reduced. While this reduction in levy income is likely to cause a reduction in the funds available in 2026, the exact impact on the income to the fund will only be known at the end of September when NORA can provide details on the exact amounts collected,” he added.
He confirmed that the CAF balance at the end of August is €248m.