This Government, and I as Minister, are committed to delivering the measures and actions so that Ireland plays its part to address the climate crisis while ensuring long term national competitiveness, affordability and energy security. We are taking action to achieve national and EU objectives and targets with the ultimate aim of achieving climate neutrality no later than 2050, ensuring a just and fair transition and safeguarding Ireland's economic future.
It is important to note the significant progress that is being made, for example:-
• Ireland now has the lowest level of GHG emissions in 35 years, notwithstanding the increase of approximately 1.5 million people, more than one million new homes and over one million extra vehicles on our roads;
• Renewable electricity generation has increased fivefold since 2005, such that more than 40% of Ireland’s electricity in 2024 was generated from renewable sources, with 5.1GW of onshore wind an increase in onshore solar capacity to 2000 MW in 2025;
• Government has approved an unprecedented investment of €18 billion in Grid for the period 2026 – 2030 to be overseen by the Commission for Regulation of Utilities. This investment is fundamental to the electrification of homes, businesses and transport;
• In terms of offshore wind the recent announcement of the results of the second ORESS auction and the commencement of work on the National DMAP are very positive signals;
• The allocation, by the Minister for Enterprise, Tourism and Employment, of €300 million to drive the decarbonisation of Ireland’s manufacturing sectors, represents one of the most efficient available decarbonisation investments on behalf of the Exchequer in CO2 per euro spend terms;
• The surpassing of our ZEVI EV sales target for 2025 in October, shows a significant shift in consumer behaviour towards sustainable forms of transport;
• Passenger numbers across Public Service Obligation (PSO) services reached an all-time high of more than 343 million journeys—an increase of 32 million compared to 2023. This significant growth marks the second consecutive year of record-breaking figures and confirms that public transport usage has not only recovered from the pandemic but now exceeds pre-2019 levels;
• The delivery of 1,000 home retrofits per week in 2024, made energy upgrades accessible to more households, particularly those at risk of fuel poverty and shows the capacity now in the sector; and
• The installation of solar panels in over 2,000 schools, funded by the Climate Action Fund is turning a levy on fossil fuels into sustainable energy with schools showing leadership in their communities.
The Carbon Budgets are the cornerstone of how we transition to a climate neutral economy and the process for the adoption of a Carbon Budget Programme is set out in the Climate and Low Carbon Development Act, 2015 (as amended) and can be broadly said to comprise the following steps:
• The CCAC shall prepare the budget programme and present it to the Minister. This was done in December 2024 following an extensive and extremely detailed programme of work;
• The Minister shall consult with members of the public and any persons he considers appropriate. In this regard, a public consultation was held between 23 April and 4 June 2025;
• The Minister presents the proposal to both Houses of the Oireachtas. This was done on 19 May 2025;
• The Oireachtas may refer the proposals to the Joint Oireachtas Committee. The Dáil referred the proposals to the Committee on 20 May 2025;
• The Joint Oireachtas Committee held its hearings in June, July and September 2025, at which the Minister, the CCAC and a range of people appeared. The Committee provided published its written report in October 2025; and
• The Minister must then consider the consultations before bringing the proposal to Government for approval or amendment before it is brought before the Houses of the Oireachtas. This process is underway.
Due to the formation of the Government and the establishment of the new Oireachtas Committees, the process of parliamentary scrutiny of the proposal took place much later than would normally be the case and, as such, the subsequent steps have unavoidably been delayed.
The aforementioned report of Joint Oireachtas Committee on Climate, Energy and the Environment is extensive, presenting 38 comprehensive recommendations spanning multiple sectors including electricity, transport, just transition, buildings, and agriculture, and extends to policy areas beyond the proposals themselves.
The matters raised in the Committee report and the public consultation require very careful consideration and further work is now being undertaken to ensure that the next carbon budget programme is ambitious, feasible, and aligns with our international commitments to continue Ireland’s transition to a climate neutral economy. I am liaising with the relevant stakeholders and intend to make an announcement in the coming weeks in respect of the Carbon Budget Programme.
