Budget 2026 is a standstill budget which will not deliver the transformational transition needed for climate action, according to the Environmental Pillar.
Karen Ciesielski, Environmental Pillar Coordinator said: “While the Budget makes significant commitments in energy and water infrastructure, this Budget falls far short of delivering the transformative action needed to respond to the climate and biodiversity crises. The Government has failed to invest wisely now in climate action, failed to create a fairer tax system and failed to provide for a just and equal society. Instead it seems hell bent on wasting billions in public money buying carbon credits in the future and then dealing with the aftermath of climate and nature destruction.”
On the taxation side, this budget has provided nothing on fossil fuel subsidies, nothing to tackle gas-guzzling SUVs or congested roads, no charges on aviation and no commitment to introduce circular economy measures to help people and businesses to reduce, reuse and recycle. Overall this is an underwhelming budget from a climate perspective.
While there are some measures such as the €20 million increase for ACRES, an €87 million Just Transition allocation for the midlands and funding for retrofitting, much of this is just running to stand still and is not enough.
Dr. Elaine McGoff, Environmental Pillar spokesperson and Head of Advocacy at An Taisce, said: “It remains to be seen how much the Government will allocate to nature spending. Minister Donohue was deliberately vague on how much the Government will allocate to the Climate and Nature Fund, announcing only combined figures with the Future Ireland Fund. Moreover, the Minister reiterated that the Government plans to raid the Climate and Nature Fund to take €2 billion to finance Metrolink. This is on top of the €22 billion already allocated to transport in the National Development Plan, which was conspicuously silent on nature.
“Ireland’s Nature Restoration Plan has to be underpinned by significant investment. At a minimum, the 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. But today’s Budget did not announce any detail on funding for nature. It’s now up to the line minister to clarify how the state will fund the nature restoration programme required to meet the 2030 goals we have committed to.”
In terms of energy poverty, there are some positive steps forward. Budget 2026 extends Fuel Allowance eligibility to those in receipt of the Working Family Payment. It also increases funding for retrofitting of social housing.
Jerry Mac Evilly, Campaigns Director in Friends of the Earth said: “The Government has at least listened to recommendations from environmental and anti-poverty NGOs to support those most at risk. Extending the Fuel Allowance to those on the Working Family Payment and increasing funding for retrofitting social homes are both positive moves. However, major reforms are still necessary to target retrofitting at those most in need, particularly renters and rural households.”