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In 2023, environmental subsidies and similar transfers in Ireland totalled €1.8 billion, an increase of €234 million, or 15%, when compared with 2022 (See Table 1). This increase occurred even though one of the main subsidy's sources, the Public Service Obligation (PSO) levy, fell sharply and was effectively zero in 2023.
The reduction in the PSO levy had an impact on overall climate-related subsidies, which were down €67 million from €423 million in 2022 to €356 million in 2023 (See Figure 2).
The adoption of energy saving measures, such as home retrofitting measures, solar panels and electric vehicle grants led to an increase of €134 million (+49%) in grants paid to households, from €274 million in 2022 to €408 million in 2023 (See Figure 3 and Table 2).
EU funded subsidies, rose by €194 million, or 144%, from €135 million in 2022 to €328 million in 2023. Agri-environment schemes, which are mainly EU funded, were the main factor in this increase (See Table 6).
The largest overall environmental subsidy in 2023 was €524 million for wastewater infrastructure. This was a €64 million (+14%) increase on the 2022 figure of €460 million (See Figure 1 and Table 1).
The largest rise in subsidies was in biodiversity protection, which went up €257 million, or 123%, from €209 million in 2022 to €465 million in 2023. This was due to new agri-environment schemes in 2023. (See Figure 1 and Table 1).
Figure 1 shows the value in current prices of environmental subsidies and similar transfers for 2014-2023, with a breakdown showing the four largest subsidies by classification of environmental purpose. Total environmental transfers were at their highest in 2023 at €1.8 billion in value.
Table 1 gives a breakdown of environmental subsidies and similar transfers from 2014-2023 by classification of environmental purpose.
| Year | Energy From Renewable Sources | Energy Saving and Management | Wastewater Management | Protection of Biodiversity and Landscape | All Other Environmental Purposes | Total |
|---|---|---|---|---|---|---|
| 2014 | 44.68 | 98.2 | 158.94 | 213.41 | 187.13 | 702.36 |
| 2015 | 97.45 | 101.81 | 172.08 | 141.85 | 192.81 | 706 |
| 2016 | 170.67 | 97.99 | 199.45 | 153.4 | 215.43 | 836.94 |
| 2017 | 267.14 | 96.65 | 213.01 | 219.64 | 226.2 | 1022.64 |
| 2018 | 372.58 | 114.79 | 230.96 | 245.91 | 262.44 | 1226.68 |
| 2019 | 144.3 | 141.9 | 316.19 | 226.93 | 298.72 | 1128.04 |
| 2020 | 141.76 | 151.2 | 340.99 | 214.94 | 280.91 | 1129.79 |
| 2021 | 430.97 | 113.33 | 363.33 | 218.26 | 346.31 | 1472.2 |
| 2022 | 316.55 | 222.25 | 460.21 | 208.7 | 378.51 | 1586.22 |
| 2023 | 66.12 | 337.78 | 523.74 | 465.32 | 426.97 | 1819.93 |
Figure 2 shows the value in current prices of climate-related subsidies and similar transfers for 2014-2023. In 2014, transfers for climate protection were €115 million in current prices. This rose to €423 million in 2022, and reduced to €356 million in 2023. The decrease in 2023 was due to the reduced PSO Levy support to electricity generation from renewable sources.
Individual subsidies were classified as 100%, 40%, or 0% climate-related based on how much they were targeted at climate protection. Some energy efficiency, renewable energy and forestry schemes have climate protection as a major objective, resulting in 40% of payments under these programmes being included as climate-related. A list of climate-related subsidy schemes is provided in the background notes to the release.
| Year | Climate-related subsidies |
|---|---|
| 2014 | 115.3595 |
| 2015 | 141.2801 |
| 2016 | 206.6423 |
| 2017 | 286.2895 |
| 2018 | 357.7505 |
| 2019 | 285.4425 |
| 2020 | 275.4138 |
| 2021 | 395.2717 |
| 2022 | 423.0193 |
| 2023 | 355.7222 |
Figure 3 shows how environmental subsidies and similar transfers were distributed to different sectors of the economy from 2014 to 2023. General government received the highest level of transfers in 2023 at €742 million. Corporations received €641 million in environmental transfers in 2023, households received €408 million, non-profit institutions serving households received €14 million, and €15 million went to international organisations.
The NACE breakdown in Table 3 shows that transfers to corporations mainly went to the agriculture, forestry and fishing sectors (€554 million) and the public admin sector (€709 million). Environmental transfers to general government were mainly made to local authorities, Uisce Éireann and the Environmental Protection Agency. In 2023, most household grants were for the purpose of carrying out energy efficiency measures in their homes or purchasing electric vehicles.
Tables 2 and 3 provide a breakdown of environmental transfers by benefitting institutional sector and economic activity.
| Year | Corporations | General government | Households | Non-profit institutions serving households | Rest of the world |
|---|---|---|---|---|---|
| 2014 | 375.9441 | 224.4083 | 91.3884 | 7.9131 | 2.7102 |
| 2015 | 351.7094 | 239.378 | 102.8626 | 9.1637 | 2.8824 |
| 2016 | 437.4671 | 275.45 | 111.0109 | 8.1482 | 4.8672 |
| 2017 | 610.417 | 303.2588 | 93.9774 | 10.1851 | 4.803 |
| 2018 | 743.9065 | 334.8455 | 133.3509 | 9.5772 | 5.0028 |
| 2019 | 501.7166 | 419.7541 | 192.1026 | 9.4029 | 5.0677 |
| 2020 | 477.6755 | 447.3867 | 190.3477 | 7.3803 | 7.0025 |
| 2021 | 779.4262 | 496.241 | 178.546 | 10.8611 | 7.1224 |
| 2022 | 667.2297 | 625.1116 | 273.5907 | 10.8464 | 9.439 |
| 2023 | 640.961 | 742.1109 | 407.7476 | 14.364 | 14.7486 |
From 2019 to 2023 capital transfers exceeded current transfers, meaning that more funding was used for investment in infrastructure than to support day-to-day operating expenditure. Capital transfers were 60.5% of total environmental subsidies and similar transfers in 2023, while current transfers were 37.3% and tax abatements (such as VRT relief on electric vehicles) were 2.2% (See Table 4).
| Year | Capital Transfers | Current Transfers | Tax Abatements |
|---|---|---|---|
| 2014 | 337 | 361.3 | 4.1 |
| 2015 | 370.7 | 328.4 | 6.9 |
| 2016 | 403.3 | 423.7 | 10 |
| 2017 | 423.7 | 580.2 | 18.7 |
| 2018 | 469.9 | 725.2 | 31.6 |
| 2019 | 596.5 | 479.2 | 52.4 |
| 2020 | 608.6 | 474 | 47.2 |
| 2021 | 724.7 | 722.6 | 24.9 |
| 2022 | 877.3 | 675.2 | 33.8 |
| 2023 | 1100.8 | 678.7 | 40.4 |
In 2023, 82% of environmental transfers were funded nationally, while the remaining 18% came from the EU (See Table 6). The amount of EU funding has increased by €194 million, from €135 million in 2022, to €328 million in 2023. This increase was mainly due to new agri-environment schemes.
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Statistician's Comment
The Central Statistics Office (CSO) has today (23 June 2025) published Environmental Subsidies and Similar Transfers 2023.
Commenting on the release, Jason Sibley, Statistician in the Environment Division, said: "This release shows that in 2023, environmental subsidies and similar transfers in Ireland totalled €1.8 billion, an increase of €234 million, or 15%, when compared with 2022 (See Table 1). This increase occurred even though one of the main subsidy's sources, the Public Service Obligation (PSO) levy, fell sharply and was effectively zero in 2023.
The PSO levy is normally used to support renewable electricity projects when wholesale electricity prices are low. In those situations, the PSO helps cover the gap between what renewable generators earn from the market and the amount they need to stay financially viable. But in 2023, wholesale electricity prices were very high, mainly due to rising gas prices. As renewable generators like wind and solar do not use gas, they were able to earn more from selling electricity without needing extra support. As a result, no PSO funding was needed for renewable energy schemes in 2023.
While overall environmental subsidies still increased, the removal of the PSO levy resulted in the amount of renewable energy subsidies decreasing from €317 million in 2022 to €66 million in 2023. The reduction in the PSO levy impacted on overall climate-related subsidies which were €356 million in 2023, down €67 million from €423 million in 2022 (See Figure 2).
The largest overall environmental subsidy in 2023 was €524 million for wastewater infrastructure. This was a €64 million (+14%) increase on the 2022 figure of €460 million. The largest rise in subsidies was in biodiversity protection, which grew from €209 million in 2022 to €465 million in 2023, an increase of €257 million or 123%. This was due to the introduction of new agri-environment schemes in 2023.
EU funded subsidies rose by €194 million, or 144%, from €135 million in 2022 to €328 million in 2023. The new agri-environment schemes, which are mainly EU funded were the main factor in this increase in 2023 (See Table 6).
Energy saving subsidies also went up, from €222 million in 2022 to €338 million in 2023, a rise of €116 million or 52%. This was due to increased grants, such as home retrofitting measures, solar panels and electric vehicle grants. These energy saving measures were behind the growth in grants paid to households, which received €408 million in 2023, up €134 million or 49%, from €274 million in 2022."