The proposed carbon tax is just one element of a wider "carrot and stick" approach to encouraging more efficient energy use, the Minister for Communications, Marine and Natural Resources has said.
Mr Dermot Ahern was speaking as he officially opened the Energy Show 2004at the RDS in Dublin today.
Referring to current fears of further oil price rises, Mr Ahern said any increases would increase the market appetite for more sustainable energy.
"Ireland continues to face major environmental challenges," Mr Ahern said. "The EU burden-sharing agreement arising from the Kyoto Protocol has placed a formal obligation on Ireland to play its part in reducing emissions of harmful greenhouse gases, most significantly CO2, from energy production and use."
He said the proposed carbon tax was one element of a wider "carrot and stick" approach to energy management, which also includes a range of other instruments such as emissions trading and negotiated agreements for industry.
"The intention of this approach is to send a clear price signal to all energy users, while informing more responsible and efficient use, allowing penalties to be avoided," the minister added.
"We need to continue to deal with the genuine threat of climate change and the potential harm that it might visit upon many nations around the world. We only have to think of the recent floods and unseasonal weather patterns in Ireland and further afield in Europe to realise how real the threat is. Climate change requires a fulsome response from every country worldwide, and if confronted in a strategic way, will likely yield economic benefits for Ireland."
The theme of this year's energy show, which is attended by 100 exhibitors, is "
Towards a low-carbon economy".