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Key Findings

Environmental subsidies rose 29% to €1.5 billion in 2021

Online ISSN: 2009-9983
CSO statistical publication, , 11am

Key Findings

  • In 2021, environmental subsidies and similar transfers in Ireland were €1.5 billion, which was an increase of €327 million, or 29%, compared with 2020 (See Table 1).

  • Climate-related subsidies reached their highest value in current prices since 2000 at €372 million in 2021, a 50% increase on 2020 (See Figure 2).

  • The increase in environmental subsidies in 2021 was mainly due to an increased level of Public Service Obligation (PSO) Levy support to electricity generation from renewable sources, which rose from €130 million in 2020 to €415 million in 2021 (See Table 2.13A).

  • Along with the PSO Levy support scheme the highest amounts in environmental subsidies in 2021 were €362 million for wastewater infrastructure under the Capital Investment Plan, and €187 million under the Green Low-carbon Agri-environment Scheme (GLAS) (See Tables 2.13A, 2.2, 2.6 and 2.1).

  • In 2021, 58% (€836 million) of total environmental transfers went to environmental protection activities, while 42%, or €617 million, went to resource management activities (See Figure 1).

  • Households received €178 million in environmental transfers in 2021 (See Figure 5 and Tables 4 and 5). 

Statistician's Comment

The Central Statistics Office (CSO) has today (10 May 2023) released Environmental Subsidies and Similar Transfers 2021.

Commenting on the release, Clare O'Hara, Statistician in the Environment and Climate Division, said: "This release shows that environmental subsidies and similar transfers were €1.5 billion in 2021, the highest value in current prices since 2000 which is the first year for which data are available. This was a 29% increase on the value of environmental transfers in 2020. The increase was mainly due to a higher level of Public Service Obligation (PSO) Levy support to electricity generation from renewable sources, which rose from €130 million in 2020 to €415 million in 2021.

Highest Subsidies in 2021

The schemes paying the highest amount in subsidies in 2021 were the PSO Levy support to electricity generation from renewable sources at €415 million, funding of €362 million for wastewater infrastructure under the Capital Investment Plan, and Green Low-carbon Agri-environment Scheme (GLAS) payments of €187 million.

Electric Vehicle grants of €68 million were paid out in 2021 and the next highest amount was €57 million in grants under the Afforestation scheme.

Environmental Purpose

In 2021, €836 million or 58% of total environmental transfers went to environmental protection activities such as wastewater management, protection of biodiversity, and protection of air and climate, while €617 million or 42% went to resource management activities such as production of energy from renewable resources, heat/energy saving, and management of forest resources.

Climate-related subsidies, which include energy-related subsidies, reached their highest level of support in current prices since 2000 at €372 million in 2021, a 50% increase on 2020.

Beneficiary, Type of Transfer, and Source of Funding

Corporations received the largest amount of environmental transfers in 2021 at €760 million. General government received €497 million in environmental transfers in 2021, and households received €178 million. Transfers to corporations mainly went to the Agriculture, Forestry and Fishing sectors (€294 million) and the Electricity, Gas and Air sector (€418 million). 

Capital transfers such as investment grants made up 50% of environmental transfers paid in 2021 while current transfers were 49% of the total and tax abatements such as Vehicle Registration Tax relief on electric vehicles accounted for the remainder.

The two most significant sources of funding for environmental transfers in 2021 were the Department of Housing, Local Government and Heritage which provided funding to Irish Water (since Uisce Éireann) and local authorities for environmental protection activities, and the PSO Levy support to electricity generation from renewable sources."

Environmental Subsidies and Similar Transfers by Environmental Purpose

Figure 1 shows the value in current prices of environmental subsidies and similar transfers for 2000-2021 with a breakdown by environmental protection and resource management activities. Total environmental transfers were at their highest in 2021 at €1.5 billion in value. 

Environmental protection transfers peaked in 2008, decreased sharply between 2010 and 2013 and rose in each year from 2016 to 2021. Resource management transfers showed an overall increasing trend from 2000 to 2018, fell in 2019 and 2020, then rose to the highest value in 2021 at €617 million.

In 2021, 58% (€836 million) of total environmental transfers went to environmental protection activities, while 42%, or €617 million, went to resource management activities.

Table 1 gives a breakdown of environmental subsidies and similar transfers from 2012-2021 by environmental protection and resource management domain.

YearEnvironmental Protection TransfersResource Management TransfersTotal Environmental Transfers
2000554.278.5632.84598419
2001597.789.7687.22317538
2002583.8108.9692.66929464
2003547.296643.31037189
2004523.3122645.3595918
2005584.8130.9715.86893322
2006687.7128.7816.41736923
2007808.3169.3977.6613343
20081137.71941331.62870592
20091016.3182.11198.31197239
20101020.6289.81310.37150871
2011637.3278.5915.897002488
2012500.5226.2726.602538892
2013432.4233.8666.277182207999
2014444.5257.9702.364136306
2015397.2308.9706.071894164
2016453.4383.7837.199493934
2017557.8465.41022.897413446
2018634.5592.71226.91530717
2019739389.11128.224478464
2020753.2372.71125.926586442
2021836.1617.21453.33575721999
Table 1 Environmental Transfers by Environmental Protection and Resource Management Domain, 2012-2021

Climate-related Subsidies and Similar Transfers

Figure 2 shows the value in current prices of climate-related subsidies and similar transfers for 2000-2021. In 2000, transfers for climate protection were €2 million in current prices. This rose to €9 million in 2005, €81 million in 2010, €105 million in 2015 and €247 million in 2020. The decrease after 2018 was due to the reduced PSO Levy support to electricity generation from renewable sources in 2019 and 2020, compared with 2018. Climate-related subsidies reached their highest value in current prices since 2000 at €372 million in 2021, a 50% increase on 2020.

YearClimate-related subsidies
20001.96
20012.0612
20021.1978
20034.542
20049.7853
20059.3869
20069.3311
200725.4091
200828.2306
200930.4406
201081.0603
201172.6119
201256.5965
201365.4551
201474.7289
2015105.0368
2016170.5228
2017251.5071
2018325.4938
2019255.7984
2020247.5791
2021371.7918

Environmental Protection Transfers

Figure 3 shows the distribution of environmental protection transfers by domain from 2000 to 2021. In 2021, wastewater management received the largest share of transfers, primarily through the funding of Irish Water's Capital Investment Plan by the Department of Housing, Local Government and Heritage (see Table 2.2). Protection of biodiversity and landscapes received the next largest share of the total in 2021. The largest biodiversity-related scheme in 2021 was the Green, Low-emissions, Agri-environment Scheme (GLAS), which was co-funded by the EU and the Department of Agriculture, Food and the Marine (see Tables 2.1 and 2.6).

Transfers targeted at the protection of ambient air and climate received 10% of the total in 2020. The increase in funding for this environmental domain from 2014 onwards was partly due to increases in electric vehicle grants administered by the SEAI and Vehicle Registration Tax (VRT) relief on electric vehicles (see Table 2.1).

Tables 2.1-2.9 show data on payments by subsidy scheme and environmental protection domain from 2012 to 2021.

YearProtection of air and climateWastewater managementWaste managementProtection and remediation of soil, groundwater and surface waterNoise and vibration abatement; Protection against radiationProtection of biodiversity and landscapesResearch and development for environmental protectionOther environmental protection activities
20000.5322.6100.20.1205.61.213.7
20010.7402.411.90.20.2164.91.915.2
20020.7379.214.50.20.21732.513.2
20030.8324.318.70.20.1185.23.314.4
20041.7266.722.50.50.2210.73.617
20052.5246.526.20.50.3286.73.518.2
20066283.128.48.10.3334.63.722.3
20079.4403.532.79.80.3317.86.328.1
200810.2675.13446.70.4325.76.638.6
20093.1570.734.46.20.4356.28.136.8
20104.4597.7335.90.2340.97.330.9
20113.3268.626.411.80.52867.233.3
20127.4161.119.2110.7264.74.831.4
20135.7136.618.813.30.8216.68.332.1
20146.9158.914.612.20.4211.44.635.1
201516172.114.612.50.4140.5635.1
201628199.412.7160.2151.98.336.9
201747.921316.814.30.2218.47.639.6
201870.723117.923.50.2244.86.240.2
2019108.9316.218.319.80.2225.110.540
2020108.334118.721.80.2214.85.542.9
2021152.2363.322.329.80.22186.743.6
Table 2.1 Environmental Transfers for the Protection of Ambient Air and Climate, 2012-2021

Table 2.2 Environmental Transfers for Wastewater Management, 2012-2021

Table 2.3 Environmental Transfers for Waste Management, 2012-2021

Table 2.4 Environmental Transfers for the Protection and Remediation of Soil, Groundwater and Surface Water, 2012-2021

Table 2.5 Environmental Transfers for Noise and Vibration Abatement, 2012-2021

Table 2.6 Environmental Transfers for the Protection of Biodiversity and Landscapes, 2012-2021

Table 2.7 Environmental Transfers for Protection against Radiation, 2012-2021

Table 2.8 Environmental Transfers for Research and Development for Environmental Protection, 2012-2021

Table 2.9 Environmental Transfers for Other Environmental Protection Activities, 2012-2021

Resource Management Transfers

Figure 4 shows the distribution of environmental subsidies and similar transfers across resource management domains from 2000 to 2021. 

Resource management transfers in 2021 were mainly aimed at production of energy from renewable sources (€431 million), heat/energy saving and management (€111 million), and management of forest resources (€58 million). The support to electricity generation from renewable sources was mainly from funds collected through the PSO Levy on electricity consumers (see Table 2.13A). A number of grant schemes supported energy-saving measures, primarily programmes run by the Sustainable Energy Authority of Ireland (SEAI) and funding for energy efficiency retro-fitting of local authority housing (see Table 2.13B). The Afforestation Scheme funded by the Department of Agriculture, Food and the Marine was the source of most of the funding provided for management of forest resources (see Table 2.11).

Tables 2.10-2.16 itemise the individual schemes and payments under each resource management domain from 2012 to 2021. There were no programmes identified that were uniquely targeted at Management of minerals (CReMA 14), therefore there is no Table 2.14 included in this release.

YearManagement of watersManagement of forest resourcesManagement of wild flora and faunaProduction of energy from renewable resourcesHeat/Energy saving and managementResearch and development for resource managementManagement of minerals; Minimisation of the intake of fossil resourcesOther resource management activities
2000075.70.1001.201.5
2001085.90.200.11.901.6
200201020.402.62.50.11.3
2003077.717.94.53.30.11.5
2004094.60.518.433.60.11.8
20050100.95.214.74.63.50.11.9
2006097.313.12.29.83.50.22.6
20070105.812.73.138.75.60.13.3
20080101.135.67.139.25.80.15.1
2009092.2237.447.96.80.14.7
20100981.867.9111.46.504.2
20110101.21.347117.96.50.14.5
20120101.61.338.275.84.80.44.1
20130101.61.256.365.74.40.44.2
20140104.11.844.798.24.20.44.5
20157.792.21.397.5101.83.50.34.6
201612.691.71.6170.7984.204.9
20172.188.71.3267.196.74.405.1
201810.783.21.2372.6114.8505.2
201912.476.61.9144.3141.9705
20206.167.11.4141.8147.2405.1
20215.357.71.3431111.3505.6
Table 2.10 Environmental Transfers for the Management of Waters, 2012-2021

Table 2.11 Environmental Transfers for the Management of Forest Resources, 2012-2021

Table 2.12 Environmental Transfers for the Management of Wild Flora and Fauna, 2012-2021

Table 2.13A Environmental Transfers for the Production of Energy from Renewable Sources, 2012-2021

Table 2.13B Environmental Transfers for Heat/Energy Saving and Management, 2012-2021

Table 2.13C Environmental Transfers for the Minimisation of the Intake of Fossil Resources as Raw Materials, 2012-2021

Table 2.15 Environmental Transfers for Research and Development for Resource Management, 2012-2021

Table 2.16 Environmental Transfers for Other Resource Management Activities, 2012-2021

Environmental Subsidies and Similar Transfers by Beneficiary

Figure 5 shows how environmental subsidies and similar transfers were distributed to different sectors of the economy from 2000 to 2021. Corporations received the highest level of transfers in 2021 at €760 million. General government received €497 million in environmental transfers in 2021, households received €178 million, non-profit institutions serving households received €11 million, and €7 million went to international organisations.

The NACE breakdown in Table 5 shows that transfers to corporations mainly went to the agriculture, forestry and fishing sectors (€294 million) and the electricity, gas and air sector (€418 million). Environmental transfers to general government were mainly made to local authorities, Uisce Éireann (formerly Irish Water) and the Environmental Protection Agency. In 2021, most household grants were for the purpose of carrying out energy efficiency measures in their homes or purchasing electric vehicles.

Tables 3 and 4 provide a breakdown of environmental transfers by benefitting institutional sector and economic activity.

YearCorporationsGeneral governmentHouseholdsNon-profit institutions serving householdsRest of the world
2000299.132506.91.8
2001268.84100.16.32
2002296.4386.60.17.22.3
2003310.23190.311.52.4
2004358270.41.313.42.3
2005442.7257.42.111.42.4
2006485.6303.81014.52.5
2007579.8336.535.9232.5
2008911.937033.513.82.4
2009802347.633.712.62.5
2010831.7361.3103.111.72.5
2011495.7299.8104.613.32.5
2012427.9222.5658.42.7
2013395.4199.657.5112.8
2014375.9224.491.47.92.7
2015351.8239.4102.99.22.9
2016437.7275.51118.14.9
2017610.7303.39410.24.8
2018744.1334.8133.49.65
2019501.9419.8192.19.45.1
2020473.7447.4190.37.47
2021760.1497.3178.110.87.1
Table 3 Environmental Transfers by Institutional Sector of Beneficiary, 2012-2021

Table 4 Environmental Transfers by NACE Section of Beneficiary, 2012-2021

Environmental Subsidies and Similar Transfers by Type of Transfer

From 2019 to 2021 capital transfers exceeded current transfers, meaning that more funding was used for investment than to support day-to-day operating expenditure. Capital transfers were 49.6% of total environmental subsidies and similar transfers in 2021, while current transfers were 48.9% and tax abatements (such as VRT relief on electric vehicles) were 1.5%. 

YearCapital TransfersCurrent TransfersTax Abatements
2000405.1227.80
2001496.5190.70.1
2002493.3199.40
2003422.4220.90
2004380.42641
2005372.3341.91.7
2006428.5382.95
2007585.2384.18.4
2008931.4391.68.6
2009783412.42.9
2010823484.13.3
2011502.2411.22.5
2012364.4359.52.7
2013320.7343.32.4
2014337.3360.94.1
2015371.3327.96.9
2016403.6423.610
2017425.157918.7
2018472723.331.6
2019598.4477.452.4
2020610.4472.343.2
2021720.5710.422.4
Table 5 Environmental Transfers by Type of Transfer, 2012-2021

Table 6 Environmental Transfers by Type of Transaction, 2012-2021

Environmental Subsidies and Similar Transfers by Source of Funding

The source of funding for environmental subsidies and similar transfers in 2021 is shown in Figure 7. In 2021, environmental transfers were predominantly funded nationally (90%) while the remaining 10% came from the EU (see Tables 7 and 8). The largest contribution was from the Department of Housing, Local Government and Heritage, which provided €452 million in environmental subsidies and similar transfers, including funding to Irish Water for wastewater infrastructure under the Capital Investment Plan.

Tables 8A and 8B shows the amounts of environmental subsidies and similar transfers funded by different government departments, environment taxes, tax abatements and the EU from 2017-2021, as well as the amounts falling under the administration of different public bodies. Some government departments were reorganised and renamed towards the end of 2020.

2021
Department of Agriculture, Food and the Marine172.62764
Department of Environment, Climate and Communications220.18667
Department of Housing, Local Government and Heritage452.06206
Department of Transport19.3469
Environment Fund and Climate Action Fund11.49
EU139.05098
PSO Levy414.63726
Tax Abatements22.4
Other1.53426
Table 7 Environmental Transfers by Source of Funding (National and EU), 2012-2021

Table 8A Environmental Subsidies and Similar Transfers by Source of Funding and Administering Body, 2021

Table 8B Environmental Subsidies and Similar Transfers by Source of Funding and Administering Body, 2017-2020

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