4R100 emission reduction is on the cards for new vehicles, but there are doubts it will do enough to cut greenhouse gas emissions to limit global warming.
It’s also unlikely to make a dent in the country’s crippling budget deficit.
In an attempt to tackle the problem, the government is introducing a new emissions tax.
It will be charged on new vehicles bought after July 1 and the levy will increase by 0.5% a year.
This is the first time that the price has been raised for the first year, and will be increased by 1.5%, for a total of 7.5%.
It will come into effect in October 2019.
The levy will be introduced on new and used cars sold in Ireland from January 1, 2019.
The car tax will apply to new cars from the first week of July, when a new emission limit is imposed on new cars.
The tax will also apply to used cars from January 2, 2019, with the new limit applying to the first two years after that.
The government says that under its new policy, the total value of all vehicles on the road in 2020 will be €1,500.
The value of new vehicles will rise by a further €1 to €3,000.
In order to achieve its targets, the plan relies on reducing CO2 emissions to a level of 20% below 2005 levels by 2020.
The new emissions levy will also affect the value of vehicles that are registered to foreign owners, such as Audi and VW.
Audi is due to unveil a new vehicle in 2021, with its emissions capped to 25% below the 2005 levels.
Volkswagen, which will start charging a new carbon tax in 2019, has said it is also likely to introduce a new tax in 2021.
The country’s finance minister, Michael Noonan, says that the new levy will cost the economy €1.2 billion, and that it will have a major impact on the Irish economy.
The levy will make up almost one-third of all the CO2 that is emitted in the European Union and will add about €1bn to the national economy, he told RTÉ News at One.
“The economy will suffer as a result of this levy.”
But Mr Noonan says that Ireland’s economy has not been hit hard by the rise in CO2.
It has a much smaller budget deficit, he says, and the government has been successful in reducing it in recent years.
“The economic impact on Ireland is not significant,” he said.
“In our view, the cost to the economy is low.
The cost of this measure is in fact low, in the order of less than €1 million per year.”
In his Budget Speech in October, Minister for Finance Paschal Donohoe said that the levy was being designed to make the Irish government’s target of limiting CO2 to a 10% reduction on 2005 levels within five years a reality.
The increase will bring the total amount of CO2 the country emits by 2020 to 1,200 gigatonnes, down from 1,500 gigatonne a year earlier.
Mr Noonan said that Ireland has the world’s highest carbon intensity, but the government will work with the EU to reduce emissions in the future.
“This will be done by an independent and voluntary process,” he added.
“It is important that we maintain the global ambition to reduce CO2 by 80% by 2020.”