The Government is aiming to cut greenhouse gas emissions 80% by 2050, it was revealed.

Environment Minister and Green Party leader John Gormley said the target was based on 1990 levels and it would begin with cuts of 3% a year.

"We are sending out a message to people here and beyond our shores of our intent, our determination, our sense of purpose in tackling climate change," he said.

Almost 600 million euro will be raised from levies on fuel and power over the next two years under the Carbon Tax.

Mr Gormley said 130m euro has been earmarked to retrofit homes around the country for energy efficiency creating 6,000 construction jobs.

"I believe that it will take time for a Carbon Levy to have its full impact on behaviour, but we now have a very positive starting point," the minister said.

But Fine Gael's environment spokesman Phil Hogan said a more radical approach was needed.

"Pursuing measures such as energy efficiency in the home are laudable but a more radical plan is badly needed," he said.

"It's clear that the Green Party in Government are solely dependant on the economic downturn to reach climate change targets rather than radical initiatives that will result in a low carbon economy and stimulate employment."

Labour's Liz McManus said the Carbon Budget was inadequate for the task ahead and accused the Greens of lacking political leadership.