Budget 2027 - planning for a Just Transition
Budget 2027 must ensure that our investment strategy supports the ambition of the climate action plan, a just transition to a green economy, emission reductions, and expedites progress towards our 2030 targets while building a sustainable, resilient and vibrant society and economy.
Transport
Social Justice Ireland proposes a Commercial Air Transport tax in Budget 2027 to yield €215m. This would ensure air travel makes a contribution to carbon budgets for the transport sector in line with the ‘Polluter Pays’ Principle and the Environment Liability Directive while Government proactively pursue the removal of the exemption of Jet Kerosene from excise and carbon taxes at EU level. Airlines and business air charter companies operating in Ireland will pay a per-passenger charge of between €5 and €30, depending on destination, on all commercial flights, with a seating capacity greater than 10, departing Irish airports.
Aggregate Levy
To promote the recycling of aggregates (rocks, sand and gravel) in the building industry, and the re-use of old buildings, Social Justice Ireland proposes the introduction of an aggregate levy of €2.50 per tonne in Budget 2027. This would generate an estimated yield of €75m.
Retrofitting
Social Justice Ireland proposes that €50m be allocated in Budget 2027 for a retrofitting programme targeted at rural housing, with €5m targeted for improving ventilation in public buildings. €10m of this should be invested in a pilot Building Renovation Passport Scheme for households to support a gradual, step by step approach to retrofitting; €1m to establish a network of community energy advisors to support lower income and vulnerable households during our energy transition and €1m to support a rooftop solar and battery pilot targeting lower income households and community buildings.
Energy efficiency
Allocate €500m from the Infrastructure, Climate and Nature Fund in Budget 2027 for investment in offshore wind energy to accelerate existing targets, upgrade of the national grid, build new grid capacity and interconnectors to accommodate more renewable energy generation, and increase storage capacity. Investment in our grid, storage capacity and renewable energy generation capacity is key to meeting electrification of home heating and transport targets, and to reducing our reliance on fossil fuels.
We propose an allocation of €10m towards reform of the RESS auction to make it more accessible for communities, schools, individuals and farmers.
A €48m fund should be established to provide grants for electric vehicles targeted at rural dwellers only, with grants of between €3,500 up to €10,000 depending on household income, and a €600 EV home charger grant.
Reorganise the PSO levy according to average demand as a first step to ensure that Data Centres make an appropriate contribution to Ireland’s renewable energy targets.
Biodiversity and Nature
Budget 2027 should invest €5m in the National Parks and Wildlife Service and in the National Biodiversity Centre to scale up policies to mainstream biodiversity into economic decision-making and support community led projects.
Investing in the Future—the Circular Economy
Social Justice Ireland proposes an allocation of €5m in Budget 2027 to continue the rollout of the Circular Economy Strategy concentrating on areas such as sustainable agriculture, living labs focused on agro-ecology, bio-economy, plastics, and the piloting of a circular economy town. A proportion of this investment should be ringfenced for the upskilling of appropriate sections of the labour force at county level for the maintenance and servicing of new energy efficient technologies that are standard part of the retrofitting process such as heat pumps.
Agriculture
Government should pilot Farm Sustainability Passport scheme at a cost of €5m in Budget 2027 to support farmers to move to environmentally friendly and sustainable agricultural methods.
Fossil fuel subsidies and tax expenditures
In Budget 2027 Government should begin the process of ending fossil fuel subsidies and environmentally harmful tax expenditures. These not-insignificant resources (€4.7bn in revenue foregone in 2024) should be invested in a long-term programme to progress renewable energy targets, upgrading our energy infrastructure, and climate adaptation measures and a Commission for Future Generations.
A Just Transition: delivery and investment
A fundamental principle of a Just Transition is to leave no people, communities, economic sectors or regions behind as we transition to a low carbon future. Transition is not just about reducing emissions. It is also about transforming our society and our economy, and investing in effective and integrated social protection systems, education, training and lifelong learning, childcare, out of school care, healthcare, long-term care and other quality services.
Budget 2027 must establish long-term funding mechanism for a Just Transition. This requires the establishment of a dedicated funding stream from the ‘Infrastructure, Climate and Nature Fund’ and the full allocation and investment of all revenues raised for climate transition. All carbon tax revenues hypothecated for investment in just transition measures - housing retrofit, agri-environmental schemes, and social welfare supports must be allocated, and any underspend directed to retrofits, reopening ACRES to new participants, establishing a fund for Nature Restoration and improved supports for community and voluntary sector and business sector to decarbonise. Government must prioritise investment that reduces fossil fuel dependence, tackles energy poverty and promotes community resilience.