The Irish Fiscal Advisory Council have warned that failure to take action on climate change could cost the State up to €13 Billion by 2050.
The State's fiscal watchdog issued this warning, but have said that a credible plan costing €4 billion could still reduce the overall cost of climate change. It also called on the State to invest money in home retrofits, renewable energy, public transport and the electricity grid.
They have also called on the Government to invest domestically in order to lover living costs and protect the economy. They have warned that delaying any action on climate change would put a major strain in public finances.
The council have stated that taxes collected from fossil fuels will decrease as more people shift towards electric cars.
According to the State's watchdog, the onus is on the Government to devise a plan to replace lost revenue through congestion charges and distance based road charges. It also added that replacing these taxes did not mean increasing the overall tax burden, but instead emphasises changing how the taxes are levied on travel.
"We can wait for global action and leave our economy exposed to big budget risks and volatile energy prices", Council chairperson, Seamus Coffey said in a statement according to RTÉ."Or we can take control by investing in our own homes, transport, and energy networks.
"Spending the money here in Ireland would help ensure lower living costs and better health outcomes for citizens, making it the sensible approach".
