Budget 2026 — Environment, Farming and Climate Measures
Key Environmental, Agricultural and Climate Policy Actions in Ireland
Ireland’s Budget 2026 strengthens national efforts in environmental protection, agricultural sustainability and climate action.
The core focus is meeting 2030 climate targets, supporting farmers, accelerating the transition to a low-carbon economy, restoring natural ecosystems and modernising rural infrastructure.
Below are the main measures under Environment, Farming and Climate.
1. Increase in Carbon Tax
Effective 1 May 2026, the carbon tax will rise to:
€71 per tonne of CO₂
This applies to:
home heating fuels,
transport fuels,
phased annual increases as part of Ireland’s climate plan.
Revenue generated from the carbon tax is allocated to climate funds, energy-efficiency programmes and rural community supports.
2. Expanded Agricultural Support Programmes
Budget 2026 broadens support for farmers through several key initiatives:
— Increased funding under the Common Agricultural Policy (CAP)
Additional funding is directed toward:
sustainable farming practices,
emissions reduction,
soil protection and biodiversity projects.
— Expansion of the Agri-Climate Rural Environment Scheme (ACRES)
Farmers will receive enhanced payments for:
lowering methane emissions,
planting hedgerows and native species,
environmental restoration projects.
— Support for Young Farmers
Funding includes:
grants for modern farming equipment,
low-interest loans,
sustainability and innovation programmes.
3. Energy Efficiency Grants (SEAI Programmes)
Budget 2026 increases funding through the Sustainable Energy Authority of Ireland (SEAI) to support:
home insulation upgrades,
heat pump installations,
energy-efficiency measures for businesses,
upgrades to public buildings.
These measures reduce carbon emissions and lower energy costs for households.
4. Development of Renewable Energy
Funding is allocated to expand renewable energy capacity, including:
wind and solar energy projects,
micro-generation for households (solar PV panels),
offshore wind development,
upgrading national electricity grids.
Priority is placed on integrating renewables into Ireland’s energy system.
5. Nature Protection and Biodiversity
Budget 2026 provides funding for:
restoration of peatlands and wetlands,
forest conservation and afforestation,
protection of rare species,
sustainable grassland and pasture management.
6. Rural Community and Infrastructure Support
Additional investment is directed toward the development of rural areas:
upgrades to transport, water and digital infrastructure,
support for rural industries and SMEs,
grants for local cooperatives and farming groups,
funding under the Rural Regeneration Programme.
7. Green Transport and Climate Initiatives
Key measures include:
grants for electric vehicles (EVs),
expansion of charging networks,
improvements to rural public transport,
investments in sustainable logistics,
incentives for businesses to transition to low-emission fleets.
8. Reform of the National Forestry Programme
Funding supports:
increased afforestation,
improved forest maintenance programmes,
incentives for farmers participating in forestry initiatives,
development of mixed-species and biodiversity-rich forests.
9. Support for Farmers Facing Climate Risks
Additional resources are allocated for:
crop and livestock insurance schemes,
compensation for climate-related losses,
investment in climate-resilient agriculture.
10. Methane Reduction Measures in Agriculture
Farmers will receive support for:
technologies that reduce methane emissions in livestock,
upgraded manure and slurry storage systems,
adoption of alternative feed additives,
gas capture and processing equipment.