01 Oct 2022

'The world is burning' - How Budget 2022 aims to tackle climate change

'The world is burning' - How Budget 2022 aims to tackle climate change

How Budget 2022 aims to tackle climate change

Speaking about climate change, while delivering Budget 2022, Minister for Finance Paschal Donohoe TD said;

"Future generations will not tolerate inaction from the leaders of today. But, by future generations, I do not just mean children yet to be born.

Children, teenagers, and the younger adults of today demand action. They deserve action.

"They are clear in their arguments and the science is unambiguous: the world is burning, and the only chance we have to control those fires is through coherent and effective policies. This is why carbon taxation is so important."

Pressure to keep in line with the Paris Agreement is mounting as world leaders will meet for another round of UN climate talks in less than three weeks in which they must secure agreement to accelerate climate action this decade to keep temperature rises well below 2 degrees celsius, above pre-industrial levels.

The minister announced that €858 million – an increase of 19% over 2021 – will be allocated to the Department of the Environment, Climate and Communications.

€368 million – an increase of 17% over 2021 – has been allocated for Energy Transformation.

This includes €202 million from carbon tax revenue to fund a retrofitting programme to upgrade 22,000 homes, for home energy purposes.

More than half of the funding will be for free upgrades for low-income households at risk of energy poverty.

€10m is earmarked for the Solar PV scheme; €31 million is for energy efficiency and renewable energy schemes in businesses and the public sector. A new low-cost loan scheme for residential retrofitting will also be introduced

Carbon tax will jump 7.5% in 2022 and every year until 2030. 

This means the price of home heating fuels like oil, as well as petrol and diesel will increase further. This follows steady increases in motor fuel costs already over the last few months.

A full tank of diesel could increase by as much as €1.50 from October 13, with petrol going up by around €1.30 a tank.

€251 million – an 8% increase on 2021 – will support connectivity and communications, including €225 million to further progress the roll-out of the National Broadband Plan (NBP) and an extra €2.5 million for the National Cyber Security Centre.

€152 million – an increase of 21% on 2021 – will support Just Transition to fund vital research and build capacity across the Department and its Agencies to lead and support Ireland’s response to the climate crisis.

€98 million will support the transition to a Circular Economy and will protect natural resources.

The Minister for the Environment, Climate and Communications, Eamon Ryan TD, said:

"Budget 2022 is about supporting our citizens as we begin the transition to a climate neutral, circular and connected economy and society.

The increased funding for retrofitting and energy efficiency will build a multi-billion euro industry that will create jobs, cut emissions and make our homes warmer and healthier. More than half of our retrofitting grants will go to free energy upgrades for low-income households – helping them save on bills.

I’m also delighted that my colleague Minister Darragh O’Brien is making a substantial allocation of a further €85m to retrofit social housing.

"Cutting our emissions in half by 2030 is both a challenge and an opportunity. Today we are strengthening our capacity to do that in very practical ways."

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