The National Oil Reserves Agency (NORA) is funded by a levy on the sale of oil products. Its revenue is used to fund the purchase and storage of Ireland’s strategic oil stocks in the event of a supply disruption, and other expenses of the Agency. NORA's Annual Report and Financial Statements for 2024 show that levy income for 2024 was €122,937,000.
The National Oil Reserves Agency (Amendment) and Provision of Central Treasury Services Act 2020 was enacted on 1 August 2020. This legislation facilitates the transfer of NORA Levy funds to the Climate Action Fund and is facilitated by my Department. €100 million was transferred by NORA to the Climate Action Fund in 2024 and received by the fund on 18 December that year.
In the same year, the Climate Action Fund recorded net expenditure of €99.7 million that included funding dedicated to peatland rehabilitation, an expansion of national EV charging infrastructure, the Schools Photovoltaic Programme, and the Community Climate Action Programme, among others.
Section 37B of the National Oil Reserves Agency Act, 2007 (as amended) is prescriptive in terms of what the Climate Action Fund can support. Section 37B of the Act provides that the Climate Action Fund may provide financial support for a broad range of innovative initiatives designed to accelerate Ireland’s transition to a low-carbon economy. Eligible projects include those aimed at reducing greenhouse gas emissions, expanding the production and use of renewable energy, and improving energy efficiency across various sectors. The fund also supports nature-based solutions, alongside research in relation to reducing greenhouse gas emissions or increasing the production, or use of renewable energy.
The Government is deeply aware of the pressures placed on households and businesses by high energy costs. It is taking action to help households and businesses with these costs. In that regard, on 12 April, the Government agreed a €500 million package of fuel supports. This was in addition to the initial €250 million in targeted supports announced in March, which was already among the largest (per capita) intervention of any EU Member State.
Recognising the pressure that high energy prices are placing on Irish consumers and businesses. In the immediate term, Government has introduced a series of measures to reduce fuel prices, and further measures are under consideration by the National Energy Affordability Taskforce. The practical measures introduced by Government on 12 April (and running until 31 July) include:
• a reduction in excise on petrol, diesel and Marked Gas Oil (MGO). When taken with a reduction in the NORA Levy, that means 32 cent off a litre of diesel, 27 cent off a litre of petrol, and 7.4 cent off MGO
• a deferral of the planned increase in carbon tax — scheduled for 1 May — until the Budget
• an increase in the maximum repayment amount available under the Diesel Rebate Scheme for qualifying road haulage and bus transport operators from 7.5 cent to 12 cents per litre for Q1/Q2 2026.
Government has also announced a new €120 million Road Transporters Support Scheme, as well as supports for coach operators providing local link services. A €100 million Fuel Subsidy Support Scheme for farmers, agricultural contractors and fishers has also been announced.
This package of supports is in addition to the measures announced in March, which include:
• an expansion of the diesel rebate scheme, backdated to January
• an extension of the Fuel Allowance season to help the most vulnerable with the cost of home heating. This is in addition to the €5 per week increase and the extension of the eligibility rules announced in Budget 2026. Over 470,000 households are now supported by the Fuel Allowance
In relation to supporting domestic oil and gas exploration, consideration of policy options has due regard to all relevant factors including the wider economic context, global energy market activity, consumer and business impacts, legally binding climate commitments, and energy security including increased security through renewables and reduced dependence on imports.
As outlined in the 2022 Policy Statement on Petroleum Exploration and Production, my Department no longer accepts new applications for petroleum authorisations for the exploration and extraction licences for natural gas or oil. Holders of existing authorisations are not affected by these changes and may apply to progress their authorisations through the usual licensing stages.
