Friday, 10 October 2025
In a major step towards its net-zero future, the Irish Government has announced a commitment of nearly €1.1 billion under Budget 2026 to advance the country’s energy transition, climate resilience, and circular economy initiatives. The investment, led by the Department of the Environment, Climate and Communications, aims to make Ireland’s energy systems more sustainable, secure, […]
In a major step towards its net-zero future, the Irish Government has announced a commitment of nearly €1.1 billion under Budget 2026 to advance the country’s energy transition, climate resilience, and circular economy initiatives. The investment, led by the Department of the Environment, Climate and Communications, aims to make Ireland’s energy systems more sustainable, secure, and affordable, while also helping communities adapt to a changing climate.
Ireland’s €1.1 billion investment in Budget 2026 directly supports its national commitments under international climate frameworks. As a signatory to the Paris Agreement and an active member of the European Union, Ireland is bound by the EU Climate Law, which mandates net-zero greenhouse gas emissions by 2050 and a 55% reduction by 2030.
This budget supports the infrastructure and behavioural shifts needed to meet those targets—particularly in sectors like buildings, energy, and waste, which are among the largest contributors to national emissions.
The €1.1 billion investment supports a range of programmes across energy efficiency, climate action, environmental protection, and renewable energy infrastructure. The allocations include:
Over €558 million, delivered through the Sustainable Energy Authority of Ireland (SEAI), will support energy upgrades in homes and communities. This includes retrofits, solar energy installations, and other improvements designed to reduce energy demand and lower emissions. It represents an €89 million increase over the 2025 allocation.
These upgrades are central to Ireland’s Climate Action Plan and are key to reducing dependence on fossil fuels, improving indoor comfort, and lowering energy bills.
This funding will support adaptation measures to help Ireland prepare for the impacts of climate change, such as flooding, extreme weather, and sea-level rise, with a focus on community-level resilience and infrastructure preparedness.
Through the Infrastructure, Climate and Nature Fund (ICNF), €21 million is allocated for energy efficiency improvements in public buildings, continuing efforts to reduce emissions across government operations.
To support Ireland’s growing offshore renewable energy (ORE) sector, €8 million has been allocated to the Offshore Site Surveying Programme. This funding will help identify and prepare offshore areas for future renewable energy projects, supporting Ireland’s ambition to become a global leader in offshore wind and marine energy.
As part of a broader €169 million national commitment, €82 million will be used to support communities in the Midlands most affected by the move away from peat and fossil fuel-based industries. This includes retraining programmes, enterprise development, and community regeneration.
Ireland is significantly boosting investment in its circular economy through €157 million dedicated to environmental management, resource efficiency, and sustainable production practices. This includes support for waste reduction, circular business models, and product lifecycle extension strategies.
€30 million has been committed to the Landfill Remediation Programme, which addresses historic landfill sites to protect soil, air, and water quality—further advancing environmental protection goals.
This investment builds on Ireland’s Climate Action Plan 2024, and directly supports the targets set under the EU Green Deal, including reducing greenhouse gas emissions by 51% by 2030 and reaching net-zero by 2050.
Minister for Climate, Energy and Environment Darragh O’Brien said the funding ensures the energy system is “secure, sustainable and affordable for all,” and confirmed that the VAT reduction on electricity and gas (from 13.5% to 9%) will be extended to December 2030, helping households manage energy costs.
Minister of State for the Circular Economy, Alan Dillon, emphasised the importance of building “a more circular, sustainable economy—one where waste is designed out, and value is kept in.” The funding supports the implementation of Ireland’s second Whole-of-Government Circular Economy Strategy, promoting reuse, repair, recycling, and low-waste product design.
Budget 2026 represents one of Ireland’s largest ever commitments to energy transition and environmental resilience. From retrofitting homes and preparing for climate impacts, to remediating landfills and enabling offshore renewable energy, the €1.1 billion investment is a clear signal of Ireland’s ambition to build a climate-neutral, nature-positive future.
As this funding is implemented across communities, industries, and the public sector, Ireland continues to position itself at the forefront of a just and sustainable transition, where economic development goes hand-in-hand with environmental stewardship.
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