Failing to take action on climate change could cost the State up to €13 billion by 2050, the State’s fiscal watchdog has warned.
The Irish Fiscal Advisory Council said a credible plan costing €4bn could reduce the overall cost of climate change.
It warned that stalling action on climate change poses a major risk to the public finances.
It called on the Government to invest domestically to lower living costs and protect the economy.
It also urged the State to invest in home retrofits, public transport, renewable energy, and the electricity grid.
The organisation has also warned that as more people shift to electric vehicles, the taxes collected from fossil fuels will fall.
It said that the Government must devise a strategy to replace the lost revenue through congestion charges and distance-based road charges.
But it added that replacing these taxes did not mean increasing the overall tax burden but instead urged changing the way taxes are levied on travel.
The Council’s Chairperson, Seamus Coffey, said: “We can wait for global action and leave our economy exposed to big budget risks and volatile energy prices.
“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.”
