Minister for Climate, Energy and the Environment Darragh O'Brien has secured €1.28 billion in Budget 2027 to speed up Ireland's move to a more secure, sustainable and affordable energy system, while deepening climate action and environmental protection measures.

The plan provides over €950 million for the Department's Energy Transformation programme to reduce reliance on imported fossil fuels; a record capital allocation exceeding €650 million for SEAI home and community energy upgrades, including expanded solar PV supports, a new home battery grant and a fossil-fuel boiler scrappage scheme; more than €170 million for climate action, with €25 million for EU Just Transition programmes and over €22 million to accelerate local authority climate action; and in excess of €150 million to advance the circular economy, including €47 million to remediate waste contamination sites.

Energy affordability sits at the core of the package. Guided by the cross-government National Energy Affordability Taskforce (NEAT), chaired by O'Brien, the Budget includes enhancements to the Fuel Allowance, increases to the Living Alone Allowance and the Child Support Payment, changes to the Working Family Payment income threshold and a new Cost of Disability Payment. Temporary excise cuts are extended into 2027, Carbon Tax on home heating oil and gas is reduced, and the Road Transporters Support Scheme is extended to help commercial operators with high diesel costs.

NEAT is continuing to assess the implications of the conflict in the Middle East, EU measures and wider international developments, and will submit a comprehensive Energy Affordability Action Plan to government later this month. The plan will address protecting households and tackling energy poverty, supporting businesses, enabling active participation, improving markets and funding investment in the electricity grid.

Commenting on the Budget, Darragh O'Brien said: "Energy affordability is a priority for me, and for this government. Last week I welcomed Energy Ministers and delegates from across the EU and beyond to Dublin Castle – to discuss the international energy crisis. It is clear that this crisis has taken a significant toll across all EU Member States. My government colleagues and I have met the challenges before us. We have already introduced a €1.4 billion package of support measures to help ease the cost pressures facing households and businesses across the country – at the fuel pump, by supporting those most at risk of energy poverty, and helping the key sectors that are vital to keeping our economy moving.

"Today, as we present Budget 2027, the focus again is very much on energy – on sustainability, on security and, of course, on affordability. Continued and enhanced energy supports that will help people today and tomorrow, announced by my colleagues today, have been informed by the work of the National Energy Affordability Taskforce, which I chair. For the taskforce, there is a particular focus on those most vulnerable to volatility in the price of imported fossil fuels. And that will be a continued focus.

"We also know that, in the medium to long term, the best way to protect households and businesses from rising energy costs is to make our homes and businesses more energy efficient, while accelerating our transition to home-grown renewable energy. That is why, just last week, I announced a suite of enhanced and new measures through the SEAI – measures designed to help more households and businesses reduce their energy costs, improve energy efficiency, and make the transition to cleaner, more affordable energy. This means that more and more households right across the country will benefit – whether through warmer, more energy-efficient windows and doors; attic and wall insulation; solar PV and home battery storage; or deep retrofits. More than one in every ten homes in Ireland have already benefited from SEAI-supported home energy upgrades. Budget 2027 allows us to accelerate that progress even further – reaching more households, delivering more improvements, and doing so faster. I also very much welcome the increase in the income tax disregard for micro-generation income received by households who sell electricity back to the grid by €200, increasing from €400 to €600. This will encourage even more home solar PV installations.

"Crucially, Budget 2027 also renews our ambitious commitment to climate action – at national and local level – and to environmental protection, not just across our country but also across our substantial maritime area." Ahead of the Budget, and as part of NEAT's work, the Minister introduced enhanced SEAI grants effective 6 October to help households and businesses lower energy costs and reduce exposure to volatile imported fuels. Measures include adding solar PV and batteries as standard under the fully funded Warmer Homes Scheme; more generous grants for solar, attic and cavity insulation for certain Department of Social Protection recipients and properties in HAP, RAS and RASP tenancies; broader eligibility for solar PV and solar thermal; a fossil-fuel boiler scrappage scheme; a home battery storage grant; and strengthened supports for businesses.

Depending on property type and upgrades, households could save up to €878 per year. Existing upgrade supports, including insulation, window and door replacements and heat pumps delivered as part of a whole-home retrofit, can save up to €1,120 annually. Businesses accessing the enhanced solar PV supports could cut energy bills by as much as €300,000 per year, with further gains from improved solar thermal and heat pump grants.

Within Budget 2027, over €950 million is assigned to Energy Transformation, including a record capital allocation above €650 million, with €647 million from Carbon Tax receipts. This represents an €89 million increase on last year's Carbon Tax-funded allocation. Additional financing, such as from the European Regional Development Fund (ERDF), is expected to further boost the 2027 Warmer Homes Scheme and overall programme. The Home Energy Upgrade Loan Scheme—offering low-cost retrofit loans with interest rates from 3%—continues to be supported.

More than €170 million is provided for the Climate Action and Leadership programme, sustaining accelerated local authority climate delivery, technical research and modelling for mitigation and adaptation, and Ireland's national and international climate obligations. Of this, €25 million supports EU Just Transition Programmes in the wider midlands, and over €22 million goes to local authorities. The Environmental Protection Agency receives additional resources as it works to shorten licensing timelines and improve predictability while maintaining environmental standards.

Momentum is building in biomethane, with seven anaerobic digestion plants recently completed or under construction, and a €200 million capital grant scheme opening in the coming days to underpin the sector's growth. District heating also continues to advance: alongside the operational Tallaght scheme, nine projects have received a combined €5 million in pre-construction funding from the Climate Action Fund, which has already allocated over €50 million to district heating. A further €50–€100 million has been set aside via the Infrastructure Climate and Nature Fund, with that scheme due to open in Q1 2027.

On the circular economy, more than €150 million is earmarked for development, including €47 million to tackle waste contamination sites. Over €10 million is allocated to the Maritime Area Regulatory Authority (MARA) to strengthen regulation of the maritime area, more than €39 million goes to Inland Fisheries Ireland, and €15 million to Geological Survey Ireland for the Tellus and INFOMAR programmes, which collect vital data on soils, rocks, water and the seabed to support sustainable development of coastal and offshore areas.

Minister of State with responsibility for Inland Fisheries and Marine Protection Timmy Dooley said: "I am pleased that key priorities in the marine and inland fisheries, that will help us deliver on our climate, energy and environmental protection targets, have secured vital funding in Budget 2027. Our goal is to ensure that our rivers, seas and oceans are clean, healthy, productive and sustainably used; this Budget supports these objectives. In particular, an allocation of €10 million for the Maritime Area Regulatory Authority [MARA] will ensure that this vital body is resourced to deliver on its important remit as a regulator for the maritime area, enabling it to serve its broad group of stakeholders. MARA supports the delivery of projects of strategic importance around our coast – realising new opportunities for economic growth. Importantly, Budget 2027 will enable MARA to focus further on streamlining its processes and decision-making timelines."

Minister of State with responsibility for Circular Economy Alan Dillon said: "Budget 2027 provides the resources needed to accelerate Ireland's transition to a circular economy while safeguarding our environment and public health. Through significant investment in waste enforcement, remediation of legacy landfill sites, circular economy innovation and public engagement, we are creating the conditions for a more resource-efficient and resilient economy.

"The financial envelope for the Circular Economy secured will be supplemented by strategic and targeted allocations from the Circular Economy Fund which is financed through environmental levies on plastic bags, landfill, and waste recovery, and plays a vital role in supporting our transition. This is about protecting our natural resources, supporting businesses, creating green jobs and ensuring communities across Ireland benefit from a cleaner and more sustainable future."