Department of Finance publishes paper on Green Budgeting in Ireland from a tax perspective

The Department of Finance has issued a paper Green Budgeting in Ireland from a Tax Perspective-update to the Methodology which outlines a methodology update to the Government’s green budgeting analysis from a tax perspective.

According to this paper, the analysis undertaken shows that the tax system in Ireland as a whole can be seen as climate positive in monetary terms and that recent budgetary changes have improved the climate positive contribution of the tax system.

Green budgeting is the process of documenting the impact of budgetary measures and wider fiscal policy on the transition to an environmentally sustainable and climate friendly economy. Green budgeting provides a policy framework which has the potential to induce policy changes that will result in improved environmental outcomes.

The paper outlines that one of the key reasons for undertaking green budgeting in the Department of Finance is to raise awareness and understanding of how taxation is linked to climate and environmental objectives and policies.