Budget Reaction: Impossible to “prepare for tomorrow” while ignoring climate crisis

Impossible to “prepare for tomorrow” while ignoring climate crisis 

Small steps towards addressing energy poverty welcome but overall Budget 2026 fails to tackle the interlinked climate and cost of living crises

In its initial response to Budget 2026, Friends of the Earth has expressed its dismay at the Budget’s failure to address the climate crisis despite Minister Donohoe’s claim that Budget 2026 will “prepare for tomorrow” and “build resilience”. 

At a time when storms and floods continue to intensify both in Ireland and across the world, the climate justice charity is very concerned by the overall lack of funding and attention given to measures that would not only address the climate crisis but also improve people’s quality of life if properly funded. Friends of the Earth is also very concerned by the Budget’s failure to make polluters pay their fair share for the harm they are doing to both people and the planet -with opportunities to tax the worst polluters from SUVs, to Big Tech, to shipping to aviation, not taken. 

On a more positive note, following sustained campaigning by Friends of the Earth and a variety of anti-poverty organisations, Budget 2026 will finally extend Fuel Allowance eligibility to those in receipt of the Working Family Payment. An increase in funding allocated to retrofitting social homes is also welcome; up €140 million this year from €90million last year.

The commitment of €3.5 billion to improve our electricity grid is a major boost to delivering on our  renewables objectives. But the reality remains that skyrocketing demand from data centres is undermining our climate and energy objectives.

The Budget released today also failed to provide clarity on how Government intends to support funding for nature, with Minister Donohue only noting combined figures for the Climate and Nature Fund and the Future Ireland Fund. 

 Giving some initial reaction to the Budget, Deirdre Duffy, CEO of Friends of the Earth said:

“Preparing for tomorrow and building resilience means clean air, warm homes and the protection of nature. There is something deeply ironic about Minister Donohoe’s claim that Budget 2026 will “prepare for tomorrow” and “build resilience” when the biggest threat to tomorrow, namely climate breakdown, has been treated as an afterthought in this Budget. Here was an opportunity at the start of this Government’s term to finally put the needs of people and our planet before that of big polluters. This has been a retrograde budget in terms of taxing the worst polluters, from SUVs, to Big Tech, from shipping to aviation. 

On addressing energy costs and cold homes, Clare O’Connor, Programme Coordinator at Friends of the Earth, said:

“There are some positive steps in the right direction - it seems that the Government has responded to recommendations that Friends of the Earth, along with other anti-poverty NGOs, has made to help people living in energy poverty. We welcome the extension to the Fuel Allowance eligibility to those in receipt of the Working Family Payment which has been a long time in the making. The €50million increase in funding allocated to retrofitting social homes is also very welcome. However much more targeted funding in this area is needed if it is to successfully lower bills, cut pollution, raise housing standards and make homes warmer and more efficient for the hundreds of thousands of people currently living in energy poverty. Measures to prioritise retrofitting for other excluded groups, such as renters and many rural households, are also desperately needed - unfortunately they have been again left out in the cold in this Budget and many will face another winter of choosing between heating and eating”

ENDS