A new joint report from the Irish Fiscal Advisory Council and the Climate Change Advisory Council warns that Ireland faces potential costs of up to €26 billion for failing to meet its EU climate targets by 2030. This “colossal” figure exceeds Ireland’s entire annual health budget.
The report highlights Ireland as Europe’s worst performer per capita regarding its pledge to reduce emissions by 2030. The country has already lost €500 million in potential revenue due to its failure to meet current targets.
According to Climate Change Advisory Council Chair Marie Donnelly, immediate action is crucial: “Yes, it will cost money, but the key issue is that we need to spend the money now, rather than postponing it into the future at some time when maybe a leprechaun will find a pot of gold.”
Even if Ireland implements all measures from its climate action plan by 2030, it could still face a bill between €3 billion and €12 billion. Under a “business as usual” scenario without further action, costs could soar to between €8 billion and €26 billion.
Irish Fiscal Advisory Council Chair Séamus Coffey noted that while there is uncertainty in the estimates, “We’re looking at pretty significant sums regardless. There are choices here. It’s pay now or in the future.”
The report recommends major investments in Ireland’s energy grid, accelerating electric vehicle adoption, and supporting changes in farming practices. Donnelly emphasized that the government needs to better communicate the financial benefits of electric vehicles to consumers, noting that electric vehicles cost about 3 cents per kilometer compared to 10 cents for petrol cars.
She called for strong political leadership on climate infrastructure projects, warning against situations where the government sets ambitious targets while facing opposition from the same political party at the local level. “Strong, aligned political determination is key,” Donnelly concluded.