Budget 2026 lacks transformative action to address climate change
Published: Wednesday, October 08, 2025
In response to Budget 2026 announced yesterday (7 October), Feminist Communities for Climate Justice (FCCJ), which is a partnership between the National Women’s Council and Community Work Ireland welcomed the announcement of targeted measures to respond to energy poverty, but warned that overall, Budget 2026 lacked the transformative actions to address climate change and ensure that Ireland’s energy transition will be just and inclusive for women and marginalised communities.
Sadhbh O’Neill, project lead for the FCCJ project said
“Budget 2026 maintains - and in some cases increases - spending on climate actions like retrofitting, active travel and public transport. However, business as usual will not deliver climate justice, or help Ireland reach our 2030 targets. We need to see much greater levels of investment in retrofitting, public transport, active travel, agricultural diversification and green procurement. Budget 2026 lacked the vision and ambition to chart a course towards a sustainable, equal, and fossil-free Ireland.”
Energy poverty
The fuel allowance, which is vital for low income households in energy poverty, is to be increased by €5 per week and extended to those on the Working Family Payment.
Sadhbh O’Neill said,
“While welcome, this measure is unlikely to insulate many people from rising energy costs, especially those from marginalised communities who are in poor quality rental accommodation or living on halting sites. We need to see a structural and policy-led approach to tackling energy poverty. The best way to protect people from energy poverty is to invest in insulation and heat pumps, and to lower energy bills with a nationwide programme to install solar PV on every rooftop. While we welcome the €558m towards retrofitting announced in the Budget for 2026, there is still no government commitment to targeting social housing and the poorest performing rental accommodation as a priority with additional funding for the Warmer Homes scheme, and accessible and affordable retrofitting grants and low-interest loans tailored to rental properties. Many of the most vulnerable households, often led by women, will still not be able to benefit from the current grant structures.”
Transport
Expenditure on public transport remains unchanged - €940 million, with reduced fares retained from last year’s Budget. Budget 2026 commits to increased spending on new roads and maintenance and renewal of the existing road network. The roads allocation has risen to €1.1 billion.
Sadhbh O’Neill said,
“There was no mention of additional funding for sustainable mobility measures for which €363m has been allocated. This effectively represents a 20% reduction on 2020 levels. The ratio of spending on public transport vs roads is now 1.3:1, compared with the 2:1 ratio under the last government. Our research shows that investment in active travel and public transport, especially in rural areas, is essential to meet the needs of women and marginalised communities including disabled people, Travellers and older people. Mobility is simply essential for participating in society, as well as being able to access public services, employment and enjoy social connections. The government needs to show much greater ambition in rolling out new rural transport routes, fast EV charging and sustainable mobility hubs.”
Sadhbh O’Neill continued,
“Sustainable transport needs a pipeline of projects, from cycle lanes to greenways, new bus routes and Luas lines, as they take a long time to get approval. The government should have committed funding for the proposed Luas 2050 plan for the greater Dublin area, and to a light rail service for Galway and other major cities. We need to see at least one new Luas line commenced every two years to realise the Luas 2050 plan, in order to meet the demand for public transport. However there is no commitment in Budget 2026 to the Luas 2050 plan.”
“The government has also committed €2bn from the Infrastructure, Climate and Nature Fund set up in 2024 towards Metrolink. While the commitment to Metrolink is very welcome, the government should be funding it through the Exchequer as the ICNF should be ringfenced for climate investment and nature restoration in the event of a downturn, which is its purpose.”
Community Climate Action
Rachel Doyle of Community Work Ireland stated,
“It is disappointing to see Budget 2026 merely extending rather than redesigning the funding framework for climate action to ensure that Ireland’s energy transition is fair and inclusive for all, especially women and marginalised communities. We had hoped to see increased investment in community climate action programmes. However, the Minister did not even mention the role of women or community climate action in his speech.”
FCCJ supports climate policies that put people and planet first, that are transformative in creating a fairer, cleaner, more prosperous and more equal future in which all women, communities, workers, and counties are lifted. This is what a truly just transition should look like.