With Ireland struggling to meet its emissions reduction targets, Green Party leader Roderic O’Gorman has said the Government must retain funding of key climate projects flagged under the new Infrastructure, Climate and Nature Fund (ICNF).
As a revised National Development Plan (NDP) is finalised over the coming days, and combined with the ICNF, which is due to come into operation in 2026, Mr O’Gorman echoed concerns climate spending may be rolled back in the context of a tightening fiscal scenario.
“With recent information from the Environmental Protection Agency showing Ireland struggling to meet those targets, it is essential that the Government allocate every cent of this fund to climate measures,” he said.
The last government agreed €3.15 billion would be spent under the ICNF over the next five years, including on energy efficiency and the scale-up of district heating.
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Minister for Climate, Energy and the Environment Darragh O’Brien on Thursday announced Ireland’s first dedicated development funding scheme for district heating, committing €5 million to support early-stage projects. It is designed to prepare “qualifying projects for subsequent capital support through the NDP”.
The Irish District Energy Association (IrDEA) welcomed the move as a critical milestone in the transition to low-carbon, locally produced heating systems.
District heating systems use insulated piped networks to heat residential homes and public buildings and provide hot water. They provide cheap, clean energy – using excess heating from industry including data centres and waste-to-energy plants and are considered critical to decarbonising the built environment.
“This is a hugely significant step for sustainable heating in Ireland,” said IrDEA chief executive Pauline O’Reilly. “Heating is the largest contributor to carbon emissions in the Irish energy sector. District heating can address this at scale by distributing clean, locally-sourced heat to residential, public and commercial buildings.”
A range of interests from local authorities to utilities and private developers are working closely with anchor institutions such as hospitals and universities to develop viable district heating schemes, she said. “This marks the first time in the history of the State that a national funding scheme has been created specifically to advance district heating.”
IrDEA chairperson Dr David Connolly said: “In time to come, this will be looked upon as a key ingredient to set the foundations of Ireland’s newest utility, and one which has huge potential to decarbonise towns and cities across the country.”
Without scale-up of district heating, 2030 climate targets would not be met, he added.
The department has estimated between €2.7 billion and €4 billion is required to meet district heating targets set in 2023.
“District heating is an obvious measure to support – using waste heat from industrial processes to provide heating to public buildings and family homes,” Mr O’Gorman added. “It will save people money, and lower our emissions. We see it working in a scheme in Tallaght already. But it does need start-up financial support to put in the pipe network to allow heat be shared.”
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Mr O’Brien said he was strongly supportive of district heating “and the opportunity it presents to both decarbonise Ireland’s built environment, improve heating systems and use excess heat from large energy users”.
The Minister added: “While the NDP remains under negotiation, it is my firm intention that funding will be available over the coming time period to support district heating. Furthermore, I am making funding available now to support district heating projects progressing through initial feasibility stages [and] have committed to enacting the Heat Bill to provide for a policy and legal framework.”
