1. Should we put a carbon tax on meat and milk in Ireland?
Paul Deane
ESRI-UCC Workshop
17th May 2018

2. 89% of the Members recommended that there should be a tax on greenhouse gas (GHG) emissions from agriculture. There should be rewards for the farmer for land management that sequesters carbon. Any resulting revenue should be reinvested to support climate friendly agricultural practices
Taxes discourage and subsidies encourage activities.

3. Emissions Context
Policy Context
Market Context
Talking Points

4. Greenhouse Gas Emissions In Ireland
National Policy Position on climate policy: an aggregate reduction in carbon dioxide (CO2) emissions of at least 80% (compared to 1990 levels) and in parallel, an approach to carbon neutrality in the agriculture and land-use sector, including forestry, which does not compromise capacity for sustainable food production.
Livestock contribute 14.5% of human-made GHG emissions

5. Renewable Energy Target
Industrial
Processes
Manufacturing Combustion
Enteric Fermentation
GHG Reduction Target
Electricity Production
Energy
Agriculture
Soils
Liming
Urea
Combustion
Public Services
Landfills
Commercial
Combustion
F-Gases
Ireland is unusual! 30% of GHG Emissions are ETS while 70% are non ETS (EU Average is 55%)
Ireland is unusual again!-45% of Emissions in the Non-ETS are agriculture (EU Average is 10%)
Ireland is unique because the milk we produce is on of the Lowest GHG footprints in Europe
Recent Teagasc data showed that the carbon footprint of Irish produce has been reduced by c. 15% since 1990
National Policy Position on climate policy: an aggregate reduction in carbon dioxide (CO2) emissions of at least 80% (compared to 1990 levels) and in parallel, an approach to carbon neutrality in the agriculture and land-use sector, including forestry, which does not compromise capacity for sustainable food production.
Livestock contribute 14.5% of human-made GHG emissions
Transport
Homes
Homes
Road Transport

6. Elec/Ind Agriculture Transport Homes Enteric Fermentation
Industrial
Processes
Manufacturing Combustion
Enteric Fermentation
Elec/Ind
Electricity Production
Agriculture
Soils 0%
10%
20%
Liming
Urea
Combustion
Ireland is unusual! 25% of Non-ETS Emissions are Enteric Fermentation
Ireland, fertiliser and animal feed are currently subject to a concessionary ‘zero rate’ of VAT
In the 5-year period , dairy cow numbers have increased by 22% and corresponding milk production by 27%.
Transport
Waste
Public Services
Commercial Services
Manufacturing Combustion
F-Gases
Homes
Homes
Road Transport

7. Agriculture Energy Transport Homes Enteric Fermentation
Industrial
Processes
Manufacturing Combustion
Enteric Fermentation
Electricity Production
Energy
Agriculture
Soils 0%
10%
20%
Liming
Urea
Combustion
Ireland is unusual! 25% of Non-ETS Emissions are Enteric Fermentation
Ireland, fertiliser and animal feed are currently subject to a concessionary ‘zero rate’ of VAT
In the 5-year period , dairy cow numbers have increased by 22% and corresponding milk production by 27%.
Transport
Waste
Public Services
Commercial Services
Manufacturing Combustion
F-Gases
Homes
Homes
Road Transport

8. Environmental taxes/levies in Ireland

9. In 2017 environmental taxes are projected to yield €3
In 2017 environmental taxes are projected to yield €3.45bn in 2017 (8% of overall taxation)

11. What does the current carbon tax of €20 look like?

12. 20kg bag of coal you pay €1.05 in carbon tax.

13. 1 litre of petrol you pay just under €0.05 in carbon tax

14. add €0.02 to a litre of milk produced in Ireland

15. add €0.40 to a kg of red meat produced in Ireland

16. …€0.08 to the price of a Big Mac

17. ….€0.02 to a breakfast roll

18. What does the current carbon tax of €20 look like?

19. If applied to all Agricultural production in Ireland ~ 400m€

20. Talking points
Complex logistical challenges (import of products/border adjustment tax, etc)
Risk of carbon leakage?
Carbon tax sends signal to all that activities lead to GHG emissions.
If a sector is given special treatment, other sectors must do more

21. Political feasible and socially acceptable?
Talking points
Political feasible and socially acceptable?
Behavioural Change/eating habits?
A vision for Rural Ireland
IFA farm income survey shows most farmers worries about product prices.

22. Should we put a carbon tax on meat and milk in Ireland?