The cost of introducing a carbon tax in line with the Kyoto Protocol on climate change has been estimated at about €1 billion by the Minister for the Environment, Mr Martin Cullen.
Mr Cullen said the price of complying with a target of capping greenhouse gas emissions from Ireland at 13 per cent of 1990 levels could be as much as €260 million annually over a five-year period.
The alternative would be a €1.2 billion fine within a decade, he said, adding that he would not be singling out a particular sector to meet the bulk of the cost: "Everybody will have to pay their share - on items like heating oil and petrol".
"If everyone is involved, the cost to everybody will be very, very low," he said.
The Minister said Ireland is currently 23 per cent over the 1990 emissions level, and heading for a level 37 per cent over the 1990 figure.
He also said a tax was only part of the solution, saying wind energy was "another obvious answer".
Mr Cullen added: "In Ireland over the last few months, we have seen a complete change in our weather pattern - deluges, storms, enormous flooding and spring weather over Christmas.
"This is happening because we have not been taking care of the environment. All of the experts are saying this is the greenhouse gases having an effect on the ozone layer, and it is causing major changes in weather".
PA