Ireland set to exceed carbon budget allocations for transport, electricity

Ireland's transport and electricity sectors are set to exceed their carbon budget allocation this year, while the residential sector is likely to remain within its carbon budget, new data from the Sustainable Energy Authority of Ireland (SEAI) has found.

Ireland‘s transport and electricity sectors are set to exceed their carbon budget allocations this year, while the residential sector is likely to remain within its carbon budget, new data from the Sustainable Energy Authority of Ireland (SEAI) has found.

According to the SEAI’s Mid-Year Review on Energy and Emission Data, lower heating demands and a growing number of home upgrades mean the residential sector is performing in line with expectations, while the transport sector is exceeding its targets due to a continued reliance on fossil fuel-powered vehicles.

At the same time, demand for road diesel was 3.2% lower in the first half 2025, compared to the corresponding period a year earlier, with transport emissions down 2.0%

In terms of electricity, meanwhile, despite a 2.8% increase in demand, SEAI data showed that electricity sector emissions were ‘largely unchanged’ on the previous year.

Increased electricity demand in the first half of 2025 was largely met by greater use of imported electricity via international interconnectors, with renewable energy generation not seeing a significant increase, year-on-year.

More to do

“We’ve made progress over the last five years, including the blending of biofuels for our road vehicles, scaling up of solar farms and wind generation, home energy upgrades, and EV roll-out, but these figures highlight that we need to do a lot more, and fast to reach our targets,” commented Margie McCarthy, SEAI’s director of research and policy insights.

Additional progress on tackling residential emissions is expected in the coming years following the government’s €568 million allocation for energy efficiency measures under Budget 2026.

‘A decisive moment’

McCarthy added that the SEAI’s report provides “timely updates” on Ireland’s energy and related emissions, as the country approaches the end of its first national carbon budget.

“Taking stock of what’s been achieved and where we have lagged at the end of this first carbon budget should be a decisive moment for both our economy and climate,” she said. “If we achieve net demand reductions and deploy clean energy faster, then Ireland can build an energy system that’s secure, affordable, and healthier for everyone, and gives us a chance to meet our climate obligations.”

“While Ireland’s energy transition presents short term challenges, its long-term benefits will be enormous. From warmer homes and more energy efficient businesses to a more resilient and future-proof economy. We simply cannot afford not to act. Either as individuals or as a society.”

The full report can be viewed on the SEAI’s website.

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