The government will spent a record €7 billion on climate and environmental expenditure in 2025, an assessment conducted by the Department of Public Expenditure has concluded. However, another €2 billion of spending during the course of the year will be unfavourable to climate and the environment, leaving a net pro-environment spend of just under €5 billion.
The figures, which form part of the government’s revised estimates for 2025, were published on Wednesday. They show that climate-positive spending has increased significantly during the 4½-year term of the coalition composed of Fianna Fáil, Fine Gael and the Green Party.
Climate and environment-friendly expenditure totalled €2 billion in 2020, rising to almost €3 billion in 2021, €3.5 billion in 2023 and €5.4 billion in 2024, with €7 billion estimated for 2025.
Spending considered unfavourable to the environment was introduced as a category for the first time in 2024. It was assessed at €1.5 billion for last year, and is estimated at €2.1 billion for 2025.
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Spending with a favourable impact on the environment and climate includes retrofitting projects, public and sustainable transport investment, adaptation measures such as flood defence projects, the funding for State agencies that promote climate, the environment and biodiversity, sustainable agriculture, water quality and waste management.
The spending considered unfavourable includes fossil fuel subsidies, supports for fossil fuel transport, initiatives that encourage intensive transport, agriculture and industry activity, and industries which use a lot of energy and generate a lot of waste including infrastructure and construction projects.
“A large proportion of the interventions involve retrofit and upgrades, which are considered climate favourable in that they will improve the energy efficiency of the fabric of the structures and make them more resilient to future adverse weather events,” the report says.
Most of the headings show a clear pro-climate spending policy. However, under the ”waste and circular economy” heading – which includes investment in new roads and other large-scale infrastructure projects – estimated climate-friendly spending for this year, at €425 million, exceeds climate-negative spending by only €110 million.
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