What is the carbon tax rate for business customers?

The carbon tax is a government tax introduced in the 2010 Budget, applicable to all CO2 emission sources. The carbon tax has applied to all natural gas customers since 1 May 2010.

From 1 May 2024, the tax for natural gas was derived from the rate of €56 per tonne of carbon dioxide (CO2) emitted and is applied to gas bills at a rate of €0.01013/kWh. This is subject to VAT.

There are some exemptions to the carbon tax:

Fully exempt

Any natural gas which is consumed for the purpose of:

• Electricity generation (this does not include CHP generation)
• Chemical reduction
• Electrolytic or metallurgical processes

Partially exempt

Partial tax relief, where carbon tax will be charged at a rate of €0.00054/kWh, will apply where gas is used:

In an installation that is covered by a greenhouse gas emissions permit issued by the Environmental Protection Agency (EPA); and

For environmentally friendly heat and power cogeneration, other than micro-cogeneration. This relief applies where it is determined that the cogeneration meets the requirements for high-efficiency cogeneration by a competent authority as designated by the Minister for Finance.

Please note: the carbon tax exemption will only be applied from the date the relevant EPA emission permits and carbon tax exemption declaration are sent to Bord Gáis Energy so that we can confirm the relevant rate.