In 2025, environmental subsidies and similar transfers, which include government payments and other financial support for activities that benefit the environment totalled €2.4 billion in Ireland. This was an increase of €53 million, or 2%, when compared with 2024 (See Table 1). This increase occurred even though one of the main subsidy's sources, the Public Service Obligation (PSO) levy, fell sharply by €89 million.
Overall climate-related subsidies remained at €485 million in 2025. Increases in measures such as home retrofitting grants and electric vehicle grants were offset by a decrease in the PSO levy, which supports renewable energy projects (See Figure 2).
In 2025, grants paid to households increased by €52 million, rising from €443 million in 2024 to €495 million in 2025 (See Figure 3 and Table 2).
EU funded subsidies rose by almost €17 million, or 4% between 2024 and 2025 going up from €425.7 million to €442.3 million (See Table 6).
In 2025, over half (52%) of environment subsidies and similar transfers went towards long-term investments, such as infrastructure and equipment, while 46% supported the ongoing cost of environment activities. The remaining 2% was provided through tax reliefs, such as reduced Vehicle Registration Tax (VRT) on electric vehicles (See Table 4).
Figure 1 shows the value in current prices of environmental subsidies and similar transfers for 2021-2025. Total environmental transfers were at their highest in 2025 at €2.4 billion in value.
Table 1 gives a breakdown of environmental subsidies and similar transfers from 2021-2025 by classification of environmental purpose.
Figure 2 shows the value in current prices of climate-related subsidies and similar transfers for 2021-2025. In 2021, transfers for climate protection were €395 million in current prices. This rose to €485 million in 2025.
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 |
|---|---|
| 2021 | 395.3 |
| 2022 | 423 |
| 2023 | 362.9 |
| 2024 | 484.6 |
| 2025 | 485 |
Figure 3 shows how environmental subsidies and similar transfers were distributed to different sectors of the economy 2021-2025. Corporations received €1,028 million in environmental transfers in 2025. General government received transfers of €847 million, while households received €495 million. Non-profit institutions serving households received €26 million, and €20 million went to international organisations.
The NACE breakdown in Table 3 shows that in 2025, transfers to corporations mainly went to the agriculture, forestry and fishing sectors (€767 million) and the public admin sector (€811 million). Environmental transfers to general government were mainly made to local authorities, Uisce Éireann, Sustainable Energy Authority of Ireland and the Environmental Protection Agency. In 2025, most household grants were for the purpose of improving energy efficiency of homes.
Tables 2 and 3 provide a breakdown of environmental transfers by benefitting institutional sector and economic activity.
From 2021 to 2025 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 52% of total environmental subsidies and similar transfers in 2025, while current transfers were 46% and tax abatements (such as VRT relief on electric vehicles) were 2% (See Table 4).
| Year | Capital Transfers | Current Transfers | Tax Abatements |
|---|---|---|---|
| 2021 | 724.6949 | 722.5826 | 24.9191 |
| 2022 | 877.2551 | 675.1622 | 33.7 |
| 2023 | 1132.7407 | 837.4135 | 35.6 |
| 2024 | 1172.5884 | 1150.3433 | 40.2 |
| 2025 | 1256.2866 | 1100.8176 | 58.9 |
In 2025, 81.7% of environmental transfers were funded nationally, while the remaining 18.3% came from the EU (See Table 6). The amount of EU funding has increased by almost €17 million, from €425.7 million in 2024, to €442.3 million in 2025. This increase was mainly due to agri-environment schemes.
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Statistician's Comment
The Central Statistics Office (CSO) has today (30 October 2026) published Environmental Subsidies and Similar Transfers 2025.
Commenting on the release, Jason Sibley, Statistician in the Environment Division, said: "This release shows that in 2025, environmental subsidies and similar transfers in Ireland totalled €2.4 billion, an increase of €53 million, or 2%, when compared with 2024 (See Table 1). Increases occurred in many areas, for example home retrofitting, solar grants etc... These increases were offset by a large reduction in the Public Service Obligation (PSO) levy which reduced by €89 million in 2025, resulting in a more modest overall increase.
EU funded subsidies rose by almost €17 million, or 4%, from €425.7 million in 2024 to €442.3 million in 2025. Agri-environment schemes, which are mainly EU funded were the main driver of this growth in 2025 (See Table 6).
In 2025, there was a net increase in grants paid to households, from €443 million in 2024 to €495 million in 2025 (See Figure 3 and Table 2). This was due to a mix of increased grants, such as home retrofitting measures and solar panels.
In 2025, over half (52%) of environment subsidies and similar transfers went towards long-term investments, such as infrastructure and equipment, while 46% supported the ongoing cost of environment activities. The remaining 2% was provided through tax reliefs, such as reduced Vehicle Registration Tax (VRT) on electric vehicles (See Table 4)."