Ireland commits €1.28bn to climate action and energy upgrades
The Irish government has announced a €1.28 billion budget for climate action and energy affordability, with over €650 million for home and community energy upgrades and more than €150 million for circular economy projects.
Ireland has allocated a record €1.28 billion for climate action and energy affordability in its latest budget. The unprecedented funding, announced on 6 October, aims to help households and businesses cut energy costs while accelerating the green transition. A capital allocation of over €650 million is dedicated to home and community energy upgrades. Households could save up to €1,120 annually on energy bills through whole-home upgrade measures. Savings can vary, with some installations delivering around €878 per year depending on the property.
Circular economy and waste management funding
Significant resources are directed toward developing a circular economy and managing waste. More than €150 million has been allocated for the Circular Economy Development programme. A further €47 million is set aside to address contaminated waste sites. The Maritime Area Regulatory Authority (MARA) will receive over €10 million to support its regulatory role for Ireland’s maritime area.
Targeted climate action and support schemes
Local authorities will receive more than €22 million to accelerate climate action at a community level. To support households facing energy poverty, the budget includes changes to the Fuel Allowance, Living Alone Allowance, Child Support Payment, Cost of Disability Payment, and the Working Family Payment income threshold. Temporary cuts to fuel excise duties have been extended into next year. For businesses, expanded solar PV supports could cut annual energy costs by up to €300,000.
Business and industrial climate support
The total €1.28 billion allocation is broken into major streams for sustainable energy and direct climate action. The funding supports a broad strategy to improve efficiency and develop renewable energy sources.
| Funding Area | Amount Allocated |
|---|---|
| Sustainable and Affordable Energy | €950 million |
| Climate Action | €170 million |
| Total Climate & Energy Budget | €1.28 billion |
Additional measures include a cut to the Carbon Tax on home heating oil and gas for households and businesses. The Road Transporters Support Scheme has been extended for commercial transport operators. Minister Alan Dillon stated that the budget accelerates the transition to a circular economy. The government's longer-term approach is to improve energy efficiency and accelerate the transition to home-grown renewable energy as a way of protecting households and businesses from volatile international energy markets.
