The Irish government has announced a commitment of close to €1.1 billion in Budget 2026 to accelerate the country’s energy transition and net-zero strategy.
Overall, some €724 million of this will be allocated to measures to ensure Ireland’s energy systems are ‘sustainable, affordable and secure’.
Of this, €558 million will be allocated to residential and community energy upgrades – including solar upgrades – under the Sustainable Energy Authority of Ireland (SEAI), an €89 million increase on the previous year’s allocation.
Some €209 million, meanwhile, will go to accelerating climate action, and to ‘prepare Ireland for the impacts of a changing climate’.
‘Secure and sustainable’
“Budget 2026 underpins our ongoing work to protect the environment, to combat climate change, and to transform our energy system – ensuring that energy is secure, sustainable and affordable for all,” commented Minister for Climate, Energy and Environment Darragh O’Brien, who added that the government has extended the VAT reduction [from 13.5% to 9%] on electricity and gas bills until 31 December 2030.
Some €21 million will be allocated to public sector retrofits under the Infrastructure, Climate and Nature Fund (ICNF), while in parallel, €8 million will be allocated to supporting the Offshore Site Surveying Programme, which seeks to support the development of the Offshore Renewable Energy (ORE) sector.
Elsewhere, around €82 million from the EU Just Transition Fund (part of an overall commitment of €169 million) has been allocated to support communities most negatively affected by the transition to climate neutrality, largely located in the Midlands.
Some €157 million will be allocated to strengthening Ireland’s circular economy and environmental management efforts, while €30 million will go to the Landfill Remediation Programme.
‘Circular, sustainable economy’
“This Budget lays the foundation for a more circular, sustainable economy – one where waste is designed out, and value is kept in,” added Minister of State with responsibility for Circular Economy, Alan Dillon. “With increased investment in landfill remediation and strengthened waste enforcement, we are not only protecting our environment but also driving systemic change.
“The implementation of Ireland’s second Whole-of-Government Circular Economy Strategy will accelerate our shift to a model where products are reused, repaired, and recycled, where circular business models thrive, and where materials are kept in use for as long as possible. This is how we build a resilient, climate-neutral and nature-positive economy for future generations.” Read more here.
