The climate crisis and Budget 2025: Big spend and strategic focus undermined by bottlenecks

The pre-budget theatre of almost non-stop leaks mainly relating to tax and measures to ease economic pain for individuals and households was at an unprecedented level — with no mention of responding to an accelerating climate crisis and the need to ensure a sustainable future.
In contrast, the Budget 2025 speeches on the Government side could not be accused of downplaying these issues and the scale of ambition could not be faulted.
Minister for Finance Jack Chambers announced almost €2 billion to immediately address infrastructure bottlenecks in the power grid, water supply and wastewater treatment, though climate bottlenecks persist elsewhere.
This funding is likely to facilitate further scale-up of renewables — ensuring more clean power across the economy — and to help curb pollution contributing to our declining natural environment. Infrastructure will be a big factor in future investment decisions currently being considered by both indigenous and multinational companies, he noted.
Minister for Public Expenditure Paschal Donohoe repeatedly referenced targeted climate actions and long-term sustainability with matching millions for transport, agriculture/rural Ireland and the marine environment — notably offshore wind development with supporting grid and port development (starting with €100 million for Cork).
The single biggest spend in coming years will be more than €3.1 billion under the Government’s new Infrastructure, Climate and Nature Fund that will kick in from 2026 and will be further boosted by the Apple tax and AIB shareholding monies.
This is applying what is described by Minister for Climate Eamon Ryan as a strategic approach backed by multiannual funding — in short, money for proven decarbonisation projects and nature restoration with guaranteed funding year-on-year. This, he explained at a briefing, sends clear and consistent signals to the private sector/industry, allowing them to scale up knowing Government support will be available.
Ryan noted the success of the national retrofitting programme in greening our housing stock. It ensured predictability, flagged the route ahead to business and translated into accelerating retrofit rates that, he claims, are beginning to force prices down and resulted in the Republic being hailed as an international leader.
Perhaps the single biggest deliverer in that regard is the carbon tax, not much liked but now delivering the guts of €1 billion, with guaranteed increases up to 2030, with locked-in funds for retrofits, support for environmental schemes to farmers and easing fuel poverty.
Ambition aside and notwithstanding vast sums of money, the question remains: is the Government doing enough to support transformation at pace of our energy system, our land use including food production and business/industry to help address carbon emissions and climate disruption that is already happening and is likely to get worse — and more costly — before it gets better.
Has it applied strategic thinking with multiannual funding to prepare for the effects in the form of extreme weather events?
The answer to the first question is “a maybe”; climate actions are kicking in with a better prospect of adhering to climate budgets up to the end of the decade. The answer to the second question is a definite “no”. Lack of focus and funding for climate adaptation, such as flood defences — stands out.
Government, State agencies, local authorities and businesses are engaged in climate action like never before and on the need to take this course — with strong public backing. It was reassuring to hear Mr Chambers note: “Confidence in our ability to provide a secure, stable and green energy infrastructure is important to position Ireland for future economic development and investment.”
But there will be hard choices facing the next government, especially on where to target public transport investment to maximise benefits, when we soon return to a scenario of limited funds. Almost as challenging will be trying to negotiate bottlenecks that are likely to persist in planning and permitting that risk impairing the necessary pace of delivery.