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Government should plan prudently and invest in climate & nature projects in Budget 2026

Budget 2026 must mark a decisive shift and should be the starting point for serious investment in climate and nature projects to meet our legally binding targets and to avoid future costs and pain for the Irish people.

Constantly, we are told that we must prepare for the uncertainties in the current unpredictable and turbulent geopolitical situation. However, we also should be preparing for certainties and for what we know is happening now. We know that the climate is breaking down, we know that nature is in crisis and we know that we face fines if we don’t meet our climate and emissions targets.Just this week, the EU’s State of Europe’s Environment Report found that Ireland’s nature is in a “very poor” state, with the country’s economic growth achieved at the expense of the environment.

We know what we must do and we should be investing and preparing now. Budget 2026 must be a turning point for Climate, Nature, and Communities. Ireland must invest wisely now in climate action, nature restoration, creating a fairer tax system and providing for a just and equal society rather than wasting billions in public money buying carbon credits in the future and dealing with the aftermath of climate and nature destruction.

To meet both our existing obligations and the new demands under EU law, Ireland must dramatically increase funding for nature restoration —across peatlands, farmlands, rivers, woodlands, coastal and marine environments. Budget 2026 presents an opportunity to act decisively.

Oonagh Duggan, Head of Advocacy at BirdWatch Ireland and a member of the Environmental Pillar Steering Committee said: 

“Stakeholders and experts across the country are dedicating their time to help the Government develop an ambitious plan to restore nature and meet our legal obligations. But without a commitment to full funding from the outset, this plan is destined to fail—and those who contributed in good faith will have been failed in the process.”

At a minimum, Government should be spending €463.5 million annually to support nature protection and restoration  at the necessary scale, according to the Financial Needs Assessments commissioned by the National Parks and Wildlife Service (1). This is not just about spending more, but about spending wisely—on long-term, multi-annual programmes that build ecological resilience, create green jobs, and restore public, and landowners trust in environmental governance.

Government must commit to fully funding the forthcoming Nature Restoration Plan. We are also calling on the Government to continue the trajectory of the last number of years and increase funding for the NPWS by 25% in Budget 2026.

The Fiscal Council calculated the Government could reduce our climate bill by €14 billion by urgently implementing what’s promised in the Programme for Government: ‘decisive action’ to radically reduce our reliance on expensive, imported fossil fuels. The Government could save the equivalent of the cost of six children’s hospitals, or 42,000 Dáil bike sheds, just by taking the climate action it’s already promised but has been too slow to implement.

Budget 2026 must mark a decisive shift. It is no longer enough to rely on policy statements, roadmaps, or incremental funding commitments. The urgency and scale of the crises we face demand transformative action—rooted in fairness, guided by science, and focused on delivery.

As the climate and ecological crises intensify, so too will the social inequalities that disproportionately affect our most vulnerable communities—unless deliberate action is taken to prevent this. Lower-income households face the greatest exposure to climate impacts, from extreme weather events to rising energy prices. Yet, these same households often lack the resources or support needed to shift toward cleaner, more affordable energy alternatives. Renters and people living in energy poverty are particularly at risk and continue to be excluded from many existing energy efficiency and retrofit supports.

Jerry Mac Evilly, Campaigns Director in Friends of the Earth and member of the Environmental Pillar Steering Committee said:

“Record numbers of households are falling into arrears, meanwhile energy bills have not reduced in large part due to Ireland’s fossil fuel reliance. Budget 2026 must provide immediate relief for households in crisis, while investing in a clear pathway to get Irish homes off polluting, expensive fossil fuels. Targeted funding and new delivery models are essential to ensure that renters and low-income households are not left behind in the transition. We are calling for an? increase and expansion of the Fuel Allowance, increased investment in retrofitting for the most vulnerable and those in social housing, as well as the development of independent community-based energy advice services.”

Among the proposals contained in the Environmental Pillar pre-budget submission are the following actions:

  • Guarantee multi-annual funding for the Local Authority Energy Efficiency Programme, as recommended by the 2024 Climate Change Advisory Council.
  • Allocate at least €180 million to increase retrofit delivery, expand direct labour capacity, and support zero-carbon public housing and preventative maintenance.
  • Prepare for mandatory Building Energy Ratings (BER) for rental properties with dedicated compliance funding.
  • Pilot a 100% funded retrofit scheme for low-income tenants, including those in Housing Assistance Payment (HAP) accommodation, tied to minimum five-year leases.
  • Commit to retrofitting all social housing and homes at risk of energy poverty by 2030, ensuring no one is left behind.

Despite years of mounting evidence and urgent warnings from scientists, progress on climate and environmental action remains painfully slow—and in some areas, alarmingly regressive. Too often in the past, governments have ignored advice and warnings – the early warnings about financial instability and an overheating economy before the banking crisis is a prime example. And too often, the Irish people have paid a very high price. The Irish people should not suffer from the shortsightedness of Governments today when it comes to addressing the climate and nature crises.