Ireland's energy targets

Climate Action and Low Carbon Development (Amendment) Act 2021 established a legally binding framework for Ireland to transition to climate neutral economy by 2050. Amongst other provisions, the Act:

• Sets out a national climate objective to pursue and achieve, by no later than the end of the year 2050, the transition to a climate resilient, biodiversity rich, environmentally sustainable and climate neutral economy
• Requires the government to adopt a series of five-year carbon budgets starting in 2021, including targets for each sector of the economy (sectoral emission ceilings)
• Provides that the first two carbon budgets, proposed by the Climate Change Advisory Council, lead to a 51% reduction in greenhouse gas emissions in 2030, compared to 2018
• Requires that the Climate Action Plan is updated annually to include the actions required in each sector to comply with the carbon budgets and the sectoral emissions ceilings

Carbon budgets

Each carbon budget represents the total amount of greenhouse gases that can be emitted nationally during a five year period. The carbon budget programme is proposed by the Climate Change Advisory Council, approved by the government and adopted by the Houses of the Oireachtas. The current carbon budget programme consists of three 5-year budgets and came in effect in April 2022:

• 2021-2025: 295 MtCO₂eq - an average reduction in emissions of 4.8% per annum for the first budget
• 2026-2030: 200 MtCO₂eq - an average reduction in emissions of 8.3% per annum for the second budget
• 2031-2035: 151 MtCO₂eq (provisional) - an average reduction in emissions of 3.5% per annum for the third budget

Sectoral emissions ceilings

The sectoral emissions ceilings set out the maximum amount of greenhouse gas emissions that are permitted in different sectors of the economy during a budget period. In July 2022, the government approved the sectoral emissions ceilings for the first two carbon budget periods (2021-2025 and 2026-2030). The sectoral emissions ceilings for the 2021-2025 budget period are as follows:

• Electricity: 40 MtCO₂eq
• Transport: 54 MtCO₂eq
• Built environment - residential: 29 MtCO₂eq
• Built environment - commercial: 7 MtCO₂eq
• Industry: 30 MtCO₂eq
• Agriculture: 106 MtCO₂eq
• Land use, land-use change and forestry: TBD
• Other (F-gases, waste & petroleum refining): 9 MtCO₂eq

Energy-related emissions account for almost all of the emissions in the electricity, transport, residential and commercial sectors, and around two-thirds of emissions in the industry sector.

The EU recast Renewable Energy Directive (RED II) is the principal legislation that promotes the growth of renewable energy across the union out to 2030. RED II set targets and criteria to be met by Ireland in 2030 and the interim. Under the European Green Deal and REPowerEU plan, a significant revision to RED II was finalised in 2023 and entered into force on 20 November 2023 (referred to as RED III). RED III sets even more ambitious targets for 2030 and requires Member States to take additional measures to promote the use of renewable energy.

Overall renewable energy share

The share of energy from renewable sources in overall gross final energy consuption is commonly referred to as overall RES. RED II introduced a binding EU-wide target for overall RES of 32% in 2030 and required Member States to set their national contributions to the EU-wide target. As per the National Energy and Climate Plant (NECP) 2021-2030, Ireland's overall RES target is 34.1% in 2030. RED III increased the binding EU-wide target for overall RES to at least 42.5%. Ireland will set its revised national contribution in accordance with RED III in its updated NECP, due to be submitted in 2024.

Renewable energy share in transport

The second mandatory target set by the RED II relates to the renewable energy share in transport sector. This is commonly referred to as the RES-T target. RED II set a RES-T target of 14% by 2030 and RED III has increased this target to 29%. RED III also changed the scope of the RES-T to include additional forms of transport.

Renewable energy share in electricity

The renewable electricity target is commonly referred to as the RES-E target. Ireland's NECP 2021-2030 includes a planned RES-E of 70% in 2030, which will ensure that renewable electricity continues to form the backbone of our renewable energy use for the coming decade and beyond. Since 2021, Ireland's Climate Action Plan has included a target to increase the share of electricity generated from renewable sources up to 80% in 2030.

Renewable energy share in heat

The renewable heat target is commonly referred to as the RES-H target. Ireland's NECP 2021 shows a planned RES-H of 24% in 2030. RED III requires Member States to increase the share of renewable energy in heat by at least 0.8 percentage points as an annual average calculated for 2021-2025 and by at least 1.1 percentage points as an annual average for the period 2026-2030.