83. Deputy Ciarán Ahern asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation if he will give assurances that 100% of revenue collected through the carbon tax will be ringfenced for climate action measures to facilitate a just transition, and that all unspent carbon tax revenue will be carried over to the following year rather than returned to the Exchequer; and if he will make a statement on the matter. [65970/26]

In Budget 2027, and as set out in the Budget Publication "The Use of Carbon Tax Funds", a total of €1,114 million from carbon tax revenue is being allocated to programmes which support climate measures and ensure the most vulnerable are protected from unintended impacts of the tax.

The Programme for Government 2025 – Securing Ireland’s Future commits to using the carbon tax as a key tool to encourage a shift away from fossil fuels and to invest in a sustainable future. It also commits to continue to use carbon tax revenues to fund social welfare measures, agri- environmental schemes and retrofitting.

Between Budget 2020 and Budget 2026, additional carbon tax revenues have been allocated incrementally each year to programmes to insulate the most vulnerable from increases in the carbon tax and to support decarbonisation and energy efficiency programmes across buildings, agriculture and transport.

More recently, in light of the deviation from the previously scheduled increases to the carbon tax rates, carbon tax allocations will remain in line with those made in Budget 2026. While there is no increase in the amount allocated from the carbon tax in 2026, Government is committed to prioritising those key measures which promote a just transition and is increasing the overall expenditure allocations to these measures through wider State funds.

In the situation that capital funding is unspent within the year for just transition purposes, it is generally used to fund Government priorities in the following year through capital carryover within the same Vote.

Budget 2027 ensures that all of the additional revenue raised from increases in the rate of carbon tax since 2020 will be allocated to programmes and measures which align with the aims of the carbon tax policy. Monitoring and reporting on annual carbon tax revenue levels are matters for the Department of Finance.