Minister Darragh O’Brien has secured nearly €1.1 billion in Ireland’s Budget 2026 to accelerate the country’s energy transition, support climate action, and underpin its journey to a net-zero future. This investment reflects a strong commitment to sustainability, decarbonization, and environmental protection, while ensuring energy affordability and resilience for all households and communities.
A record €558 million has been allocated for home energy upgrades, including retrofitting and the Solar PV Scheme, an increase of €89 million compared with Budget 2025. The funding will make homes warmer, healthier, and more energy-efficient, while the Home Energy Upgrade Loan Scheme continues to provide low-cost retrofit loans. Public sector building retrofits are also supported, with €21 million allocated under the Infrastructure, Climate and Nature Fund (ICNF).
Budget 2026 includes significant investment in offshore renewable energy data surveying, with €8 million designated to de-risk future projects and strengthen Ireland’s electricity system. This investment is expected to encourage greater market participation, competition, and more affordable electricity prices for households and businesses.
Climate action and a Just Transition are central priorities. Almost €82 million in 2026 under the EU Just Transition Fund will support communities, particularly in the Midlands region, most affected by the move toward climate neutrality. Broader investments include €169 million for the overall Just Transition Programme, funding research, technical modeling, and climate mitigation and adaptation measures.
The Budget also advances Ireland’s Circular Economy ambitions, with €30 million allocated for landfill remediation and a total of €157 million to support waste management, recycling, and environmental protection. Funding will ensure the Maritime Area Regulatory Authority can effectively regulate Ireland’s waters and marine resources.
Energy affordability measures have been extended, including a reduced VAT rate on electricity and gas until 2030 and an increase in the Fuel Allowance from €33 to €38 per week. Households benefiting from microgeneration of electricity will continue to enjoy a €400 income tax exemption through 2028. Investments in the national grid, totaling €3.5 billion over 2026–2030, will strengthen the electricity network and ensure resilience amid a changing climate.
Minister of State Alan Dillon emphasized that the Budget lays the foundation for a circular, sustainable economy where waste is minimized, and materials are reused and recycled, driving systemic change. Minister of State Timmy Dooley highlighted that funding for marine and inland fisheries, along with support for the Maritime Area Regulatory Authority, will help protect Ireland’s rivers, seas, and oceans while promoting sustainable use.
Overall, Budget 2026 combines energy transition, climate action, environmental protection, and social support measures to advance Ireland’s net-zero objectives and build a sustainable, resilient economy for future generations.
