Government Explores One-Off Payments for Green Energy Amid Carbon Tax Delay

The Government is considering one-off payments for environmentally friendly energy measures like heat pumps and efficient cars. Tánaiste Simon Harris has asked officials to explore options for supporting the transition to sustainable energy and electricity supplies, including accessible financing for home upgrades and retrofitting.

This comes as the Government faces pressure over the carbon tax. A planned increase, due May 1st, has been postponed until October 14th, costing the State €22 million. Harris emphasized that Ireland must move away from fossil fuels fairly, with government support for households and small businesses through targeted grants and infrastructure investment.

He highlighted the global energy crisis exposing Europe’s vulnerabilities and the need to avoid reliance on external actors for energy security, referencing lessons from the invasion of Ukraine. Harris confirmed his department is working on practical supports for upgrading home heating systems, including hybrid heat pumps or lower-emission fuels like HVO, and encouraging more efficient vehicles. The Government remains committed to annual carbon tax increases, with revenue ring-fenced for green initiatives.