Environmentalists criticise free carbon credits

The Government's allocation of free carbon credits to industry has been described as "the ultimate stealth tax" by the Friends of the Earth (FoE) group.

The group has claimed that it will cost taxpayers at least E2 million every week. The Environmental Protection Agency (EPA), which published the national allocation plan on Friday, July 14th, has estimated that Ireland's greenhouse gas emissions from 2008 to 2012 will be double what the Kyoto Protocol allows.

If carbon dioxide prices remain at around E15 a tonne, it would cost Ireland around E15 million a year.

FoE director Oisin Coughlan highlighted what the Government was going to do with taxpayers' money.

“Industry will get their pollution permits for free, but raise consumer prices to reflect their value.

“On the other hand, the Government will use taxpayers' money to buy permits for the rest of our Kyoto overshoot. It's a double whammy for the average household,” he said.

Mr Coughlan is supportive of a carbon charge in the rest of the economy which is not covered by the emissions trading scheme.