From Department of the Environment, Climate and Communications
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Minister for the Environment, Climate and Communications, Eamon Ryan, has secured almost €1.4 billion in Budget 2025 to support families and communities and continue the drive towards a low-carbon, digitally-connected future.
Two Electricity Credits of €125 (€250 in total) will be applied to domestic electricity bills; one before Christmas and one during the January/February 2025 billing cycle, providing support to households during some of the coldest months. The total value of this measure is almost €570 million*. It will be part-funded from the measures introduced to address the windfall profits of some fossil fuel companies.
Budget 2025 also includes record funding of €469 million from the Carbon Tax for Sustainable Energy Authority of Ireland (SEAI) residential and community energy upgrades, including the Solar PV (photovoltaic) Scheme. This is an €89 million increase on last year and means that more funding than ever will be available to make homes warmer, healthier, more comfortable and less expensive to heat. This will be supplemented by an increased allocation from the European Regional Development Fund (ERDF), that will increase the Warmer Homes Scheme budget to €240 million. This scheme provides free, fully-funded energy upgrades for low-income households at risk of energy poverty. The 2025 allocation for this scheme represents a 10-fold increase on the 2020 expenditure figure.
Funding has also already been provided to further implement the Home Energy Upgrade Loan Scheme, which provides low-cost retrofit loans with interest rates available from 3%.
In addition, Budget 2025 will see VAT reduced to 9% (from 13.5%) on heat pumps, making it more affordable for home-owners to switch to efficient electric heating. This is the lowest VAT rate that is allowable under the VAT Directive. This is in addition to the already generous grants that are available from SEAI.
A record capital funding allocation of €400 million will be provided to further progress the roll-out of the high-speed broadband network under the National Broadband Plan. Through the State's investment in high-speed broadband, National Broadband Ireland (NBI) expects to shortly meet the 2024 target of 300,000 premises passed, with 100,000 of those premises having already connected to the high-speed network. The funding provided will continue to support the delivery of the programme.
Budget 2025 will fund a continued expansion of resources for the National Cyber Security Centre (NCSC) including an additional 30 staff. This will support the Government's commitment to build the NCSC's capacity and lead in the implementation of the Network and Information Systems (NIS2) regulatory framework. This will include measures to strengthen cyber-security and build resilience, address the cyber skills gap, and develop the cyber-security industry in Ireland.
This government is committed to ensuring that no sector of society or community is left behind in the movement to a low-carbon future. To this end €51.7 million has been secured, to continue delivery during 2025 of Ireland's [internal-link null | EU Just Transition Fund Programme 2021-2027 ] in the Midlands counties most affected by the ending of peat extraction.
The sale of the State's AIB shares will provide for an initial direct equity injection of €750 million* to develop our electricity infrastructure and, in particular, to support Phase I of offshore grid development. This significant equity injection for EirGrid will encourage further industrial investment, facilitate the progression of the digital economy, enable decarbonisation of the broader economy and enhance our competitiveness. The signalling of the provision of this funding, to expand the capacity of our electricity grid, will positively impact future investment decisions – currently being considered by both indigenous and multi-national companies.
Commenting on Budget 2025, the Minister for the Environment, Climate and Communications, Eamon Ryan, said:
"There is a sea-change in how we view the environment and this record investment for the department represents a real commitment to making sure that climate action is working for each and every household in Ireland. Further Electricity Credits are helping people through the coldest months, while the highest ever budget for the Warmer Homes Scheme will provide home energy upgrade supports for those who can least afford it, and help to address an underlying cause of energy poverty. Budget 2025 will see the allocation for this scheme – providing free upgrades for low-income households – rise to 10 times what it was in 2020.
"We also know that our climate transition needs to be fair for all, and I’m delighted to secure significant funding to continue the delivery of the EU Just Transition programme in 2025, supporting midlands communities.
"I also welcome further clarity on a process for ensuring that €3.15 billion of the Infrastructure, Climate and Nature Fund will be invested in the transition to climate neutrality and in nature restoration. I believe the two areas where the certainty of multi-annual funding can have a real impact are the development of renewable heat supply and demand markets, and enhanced building energy efficiency. These are areas my department will focus on, as we engage in this process."
Minister of State with responsibility for Communications and Circular Economy, Ossian Smyth, said:
"The National Broadband Plan is one of the most successful and impactful infrastructure projects in the history of the State. I have secured funding of €400 million in Budget 2025 – to support the continued rollout and delivery of this transformative project. This will ensure that the benefits of the digital transition are felt right across the country – in every home, farm and school. I have also secured additional funding – in Budget 2025 – for the continued expansion of resources for the NCSC, including an 30 additional staff. As a State, we are committed to strengthening our cyber-security and building resilience. I am also announcing €127 million of funding for programmes to continue our transition to a circular economy; these play a fundamental role to enable us to meet out national climate targets for 2030 and 2050."
Minister of State with responsibility for Postal Policy, James Lawless, said:
"I am pleased to announce that €10 million will continue to be allocated for post offices and postmasters for 2025, as part of the government's ongoing commitment to support a sustainable, nationwide and vibrant network. This affirms our commitment in the Programme for Government, and underscores the fundamental and integral role that the post office network plays in our country."
* It should be noted that these amounts are not included in the department's core €1.4 billion allocation under Budget 2025
ENDS
The Department of the Environment, Climate and Communications has been allocated €1.384 billion in Budget 2025.
Key Budget 2025 allocations include:
The Infrastructure, Climate and Nature Fund (ICNF) is one of two funds established this year to manage windfall capital tax receipts, to help deal with future expenditure objectives and pressures.
The dual objectives of the ICNF are to provide resources to help manage the pro-cyclicality of public spending and to invest in the transition to climate neutrality and in nature restoration. Up to €3.15 billion in the ICNF is being set aside for the multi-annual funding of designated environmental projects over the period 2026 to 2030 to support the transition to a low carbon economy and improved environmental outcomes.
The department is currently working on business cases for programmes that are to be proposed as Designated Environmental Projects under Section 20 of the Future Ireland Fund and Infrastructure, Climate and Nature Fund Act 2024.
There are five programmes that target actions under the Built Environment Sectoral Ceiling and are being prepared as part of an overall programme on delivering critical renewable heat actions under the built environment sectoral ceiling, including: Development of a National District Heating Infrastructure and Market; and Public Sector Building Energy Efficiency.
In addition, the department is looking at the creation of an innovation programme to fund demonstrator projects that test how new energy technology can be used to grow our renewable energy infrastructure.
The department is also working on business cases for two other projects that target actions under the Electricity Sectoral Ceiling in relation to Offshore Renewable Electricity and Microgeneration.