Environmental subsidies hit record €1.6bn in 2022

CSO figures show increased supports for energy efficiency retrofitting schemes and more wastewater investment accounted for the increase

Environmental subsidies hit record levels last year on the back of more State support for energy efficiency retrofitting schemes and more wastewater investment which “outweighed a decrease in funding for production of energy from renewable sources”.

Central Statistics Office (CSO) figures showed environmental subsidies and similar transfers were €1.6 billion in 2022, which was an increase of €105 million, or 7 per cent, on the previous year.

The schemes paying the highest amount in subsidies in 2022 were €459 million for wastewater infrastructure under the Uisce Éireann capital investment plan; the Public Service Obligation (PSO) levy support to electricity generation from renewable sources at €287 million; and Green Low-carbon Agri-environment Scheme (GLAS) payments of €179 million.

Local Authority housing retrofits were funded to the value of €64 million in 2022; electric vehicle (EV) grants of €63 million were paid out, and €57 million was provided in grants under the afforestation scheme.

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In 2022, €962 million or 61 per cent of total environmental transfers went to environmental protection activities such as wastewater management, protection of biodiversity, and protection of air and climate.

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times