It is scandalous that more than half a billion euro raised for climate action measures through a fuel tax has been left unspent when it could have been used for the rollout of a nationwide solar panel installation programme, according to Social Democrats TD Jennifer Whitmore.
Deputy Whitmore, who is the party’s spokesperson on climate, said:
“It was reported today in the Irish Independent that financial statements from the Climate Action Fund show that 70 per cent of the money raised through a 2 cent levy on petrol and diesel has been left unspent.
“This levy, which was recently reduced due to the fuel price crisis, is paid to the National Oil Reserve Agency (NORA). Most of the money raised through the levy is transferred into the Climate Action Fund (CAF) to fund climate action projects.
“However, it has now emerged that the Climate Action Fund has left €278m unspent between 2020 and 2024. This comes at a time when €258m in carbon tax revenues went back to the Exchequer between 2020 and 2023 instead of to climate causes.
“The end result is that €536m collected in taxes on fuel for climate action measures has not been spent over recent years.
“It is scandalous that money raised for climate action measures has been left unspent.
“This means there are tens of thousands of homes all over the country that haven’t been able to avail of solar panels or retrofitting – and thousands of farmers who haven’t received the level of support they should have for a just transition.
“The failure to invest this money is not just bad for our climate ambitions, it is having hugely negative impacts on people during a cost-of-living crisis that is putting so many people under enormous pressure.
“We know that solar panels, for example, can reduce household energy bills by at least €450 a year – yet only a tiny fraction of homes that are eligible for them have installed them.
“The Social Democrats have proposed a ‘Solar for All’ plan, which would dramatically expand and improve supports for solar panels installation – starting with doubling the existing grant from €1,800 to €3,600.
“Separately, we would reinstate the €1,000 grant that used to exist for battery storage, which the Government inexplicably cut in 2022.
“We would also include free solar panels as part of the Warmer Homes Scheme, so families most at risk of energy poverty could get them installed.
“The Government should now do what they should have done years ago – immediately invest money raised through the fuel tax to help families reduce costs and protect our environment.”
May 8, 2026