The government approved the Climate Action Plan 2025 on 15 April 2025. This marks the third statutory update to the plan since the Climate Action and Low Carbon Development (Amendment) Act 2021 was signed into law. CAP 2025 builds on CAP 2024 and will be the final CAP of the first 5-year Carbon budget.
Electricity
CAP 2025 sets a target of reducing greenhouse gas (GHG) emissions by 75 per cent by 2030, relative to 2018 levels. As of 2023, GHG emissions have fallen by 26.2 per cent compared to 2018 levels. Within the electricity sector, the government aims to meet 80 per cent of electricity demand with renewable energy sources by 2030, alongside the delivery of long-duration electricity storage to exploit the potential of renewable energy.
Furthermore, there is government recognition within CAP 2025 of the need to enhance Ireland’s electricity grid. This will allow for more renewable energy sources to supply energy to the grid, enhancing Ireland’s competitive appeal as a destination for green investment.
Progress towards Ireland’s electricity targets is being made, with the final outcomes of the fourth onshore Renewable Electricity Support Scheme auction securing a potential 20 per cent increase in the State’s current renewable electricity capacity.
Transport
CAP 2025 commits to a 50 per cent reduction in GHG emissions by 2030 compared to 2018 levels. As of 2023, GHG emissions saw a reduction of 4.2 per cent in comparison to 2018. The government intends to drive investment in public transport investment, which will be vital to Ireland’s competitiveness, helping to attract talent and investment and ensuring workers can commute efficiently.
Industry
CAP 2025 strives to achieve a 35 per cent reduction of GHG emissions by 2030, relative to 2018 levels. According to 2023 data, GHG emissions fell by 9.6 per cent compared to 2018 levels. By 2025, the State will look to achieve a 50 to 55 per cent share of carbon-neutral heating in industrial fuel demand. The government will provide Large Energy Users (LEUs) with support to develop energy-efficient industrial processes. Assisting LEUs with the adoption of energy-efficient industrial processes will strengthen Ireland’s position in the global market, aligning with the long-term sustainability goals of large Multinationals.
Commenting on the launch of the CAP 2025, Minister of State for the Circular Economy, Alan Dillon, highlighted the large opportunities for innovation, competitiveness and job creation created by the targets in the CAP 2025. Minister for Climate, Environment and Energy, Darragh O’Brien, echoed this sentiment.
Criticism
In response to CAP 2025, Friends of the Earth stated that the plan does not guide Ireland in the right direction to meet its climate obligations. The group expressed disappointment in the lack of acknowledgement of data centre expansion and growing dependency on fossil fuels, particularly gas.
Green party leader Roderic O’Gorman also expressed concerns. He voiced apprehension about the lack of direction for CAP 2026, which, he says, will be of great importance as it marks the start of the second carbon budget cycle. Deputy O’Gorman called for a “step change increase in ambition” to meet the 2030 targets.
