The Irish government allocated €1.28 billion in its 2027 budget to accelerate climate action, protect the environment and tackle energy poverty. The package was announced on October 6 by Minister for Climate, Energy and the Environment Darragh O’Brien, following a surge in energy prices that pushed affordability high up the political agenda.
The funding includes more than €950 million for more sustainable and affordable energy, as well as €650 million for energy upgrades to homes and communities. It also includes €170 million for climate action and more than €150 million to further develop the circular economy.
O’Brien linked the focus on affordability to rising oil and gas prices in Europe and beyond, which he said had been driven by ongoing tensions in the Middle East. He stressed that the energy price crisis had placed a significant burden on all EU member states and noted that the government had already introduced a €1.4 billion support package to provide relief to households and businesses.
To support those most vulnerable to energy poverty, the 2027 budget provides for an increase in the Fuel Allowance, higher Living Alone Allowance and Child Support Payment, a new Cost of Disability Payment and a change to the income threshold for the Working Family Payment. The government also plans to extend temporary fuel excise duty reductions into next year, reduce carbon tax on heating oil and natural gas for households and businesses, and expand the road haulier support scheme to offset high diesel costs. The interdepartmental National Energy Affordability Taskforce, chaired by O’Brien, helped shape the plan.
On energy efficiency, the government is prioritizing building upgrades through the Sustainable Energy Authority of Ireland (SEAI). These include more energy-efficient windows and doors, building insulation, solar panels and home batteries. According to the government, the new energy upgrade grants could save households €1,120 a year on energy bills, while businesses could reduce their annual energy costs by up to €300,000 through increased support for solar photovoltaics.
Beyond energy, the budget includes funding for other aspects of the green transition: €25 million for the European Union’s Just Transition programme, €22 million to promote climate action in local government and €47 million to address contaminated waste sites. Minister of State responsible for the circular economy Alan Dillon said the 2027 budget provides the resources needed to accelerate Ireland’s transition to a circular economy while protecting the environment and public health. He added that investment in waste inspections, the remediation of old landfill sites, circular economy innovation and public awareness would create the conditions for a more resource-efficient and resilient economy, support businesses, create green jobs and help communities benefit from a cleaner future.
The piece notes, however, that the question remains whether these measures will truly accelerate Ireland’s green transition or simply address existing vulnerabilities, highlighting the tension between immediate relief on affordability and longer-term climate goals.
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