Irish Times: "serious about the green economy"

Getting serious on green economy

January 22, 2011 - IT’S NOT every day that a government faced with a gaping budget deficit decides to give away some much-needed tax revenue, so the announcement yesterday that tax relief under section 110 of the Taxes Consolidation Act is to be extended to carbon offsets indicates that the current administration is serious about the green economy.

The announcement coincided with the emergence of details of the much-vaunted “Green IFSC” project. The initiative has been brewing for almost two years, so it is welcome to see some meat on the bones at last.

The primary recommendation is to establish a State-backed voluntary carbon exchange and an International Carbon Standard (ICS). There has been considerable lobbying for the introduction of such a scheme, with supporters arguing that a specific “brand” for carbon standards would set Ireland apart from global competitors.

The initiative as outlined envisages an investment by the State of €6.8 million over three years, with a €1.5 million injection of private money. The relatively low level of private investment required in what is essentially a commercial initiative may raise eyebrows. {continued}