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Going green is a motto that is gripping the world. Regardless of the reasons, it has become a commercial message. A selling point for services and products. A topic that has generated many conversations. Ireland has been forging ahead with its environmental policy, from non-recycling bin charges to the smoking ban. The shift to a CO2 emissions-based system of tax is appropriate and expected.
Environmental sense As Brian Cowen, Minister for Finance, stated in his Budget speech, “this measure is not about penalising people for their reasonable lifestyle choices - it is about providing them with opportunities and incentives. By explicitly linking VRT rates to carbon emissions on the basis of a new and highly transparent labelling system, we are providing individuals and families with the opportunity to make choices to help the environment and with financial incentives to do so. Of course, the higher emitting cars will pay more, but by making sensible and informed decisions, many families could see their VRT bills reduced.” These sensible and informed decisions are a basic requirement of social responsibility. No longer can the Irish nation, or any nation, ignore the affect they are having on the environment around them. It is important that consumers take note of how they add to global warming and the melting of the ice caps. Climate change is not just an issue for cutting-edge documentaries; it is an issue for every single person on this planet. Kyoto Protocol
On 11th December 1997, the International Framework Conventionon Climate Change agreed to a number of objectives that they recorded as the Kyoto Protocol. These objectives were related to the reduction of greenhouse gas emissions that cause our climate to change. This protocol came into effect on 16 February 2005. The EU ratified this protocol, and Ireland is committed to reducing our national greenhouse gas emissions to 13% above our 1990 levels. This target is to be achieved across the five-year period from 2008 to 2012. Currently, Ireland emits 70 million tonnes of greenhouse gases every year. In order to comply with the Kyoto Protocol, we must reduce this to 63 million tonnes. This change of tax system will directly and financially affect consumers who are responsible for emitting those greenhouse gases through their own lifestyle. This new system calls for action. Government are not passing the buck, they are merely forcing the nation to take responsibility for their own actions. As Oisin Coghlan, Director of Friends of the Earth states, “the changes to VRT and Motor Tax are progressive and welcome. From next July new cars will be taxed solely according to how polluting they are. Cars will be clearly labelled A to G, just like fridges are now, depending on their carbon emissions. The more polluting the car you buy, the more you pay. It is simple, fair and clear. Importantly, the VRT on low-emission cars will actually be less than it is now, demonstrating that environmental tax reform is not about raising more revenue for government, but rather about sending a clear price signal to people that less-polluting choices will be rewarded.”
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