Dáil Éireann Debate, Tuesday - 24 February 2026
190. Deputy Peter Roche asked the Minister for Climate, Energy and the Environment the estimated potential compliance costs to the State arising from a failure to meet legally binding EU climate targets by 2030; the measures being taken to reduce that exposure; and if he will make a statement on the matter. [13281/26]
Amharc ar fhreagraIreland’s target to reduce emissions under the revised Effort Sharing Regulations (ESR) is 42% compared to 2005 levels by 2030. This Regulation covers those sectors of the economy that fall outside the scope of the current EU Emissions Trading System (EU ETS) including transport, buildings, agriculture, light industry and waste.
Under the existing compliance arrangements, Member States can meet their targets through direct emissions reductions, as well as through additional compliance options provided for in the framework.
The framework does not provide for the imposition of direct fines or penalties, or the use of carbon credits or payments to international carbon offset schemes. However, it does allow for the purchasing of surplus allowances from overperforming Member States which could have significant costs. Estimating these costs requires working with significant data limitations as, at this point, there is no established market or set cost for allowances. This was noted by the CCAC and IFAC in their report.
Government's focus is on achieving the necessary emissions reductions in Ireland by continuing to invest in transformational measures that will decarbonise our economy. Work remains ongoing across Government Departments to carry out climate mitigation efforts every day, and the rollout of retrofitting, renewable energy deployment, and more affordable electric vehicles continues at pace.
We are making significant strides toward our target of 80% renewable energy by 2030 and we are now prioritising the development of offshore wind capacity. This Government has approved an unprecedented investment of €18.9 billion in Grid for the period 2026 – 2030 which is fundamental to the electrification of homes, businesses and transport. The 2025 ZEVI target for electrical vehicle sales of 195,000 was surpassed in October 2025 and I have just announced an unprecedented package of new and enhanced grants for homeowners across the country who are looking to benefit from home energy upgrades under the National Residential Retrofit Plan.
In line with our Programme for Government commitment, enhanced implementation governance arrangements to support accelerated climate action delivery, have been put in place in 2025 to streamline structures, ensure key strategic projects are supported and that corrective action is taken quickly where delivery is at risk.
