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Ireland’s Climate Action Plan 2025 sets sectoral targets - businesses must act now to close the emissions gap and drive low-carbon growth.
Tagline: Understand how Ireland’s Climate Action Plan 2025 affects Irish businesses in high-emitting sectors and assist businesses in understanding their role in accelerating Ireland’s transition to a low-carbon island.
In brief:
- What is the issue: The Climate Action Plan 2025 establishes that Ireland is not on track to meet its EU climate target of a 51% reduction in greenhouse gas emissions by 2030.
- What is required: Greater investment is needed from businesses operating in high-impact sectors (Electricity, Transport, Industry, Built Environment, Agriculture and Land Use, Land Use Change and Forestry) to contribute to their sector’s targets outlined in the Climate Action Plan.
- Opportunities: Businesses can contribute by investing in cost-effective, high-abating mitigation measures, assessing their resilience against climate-related threats and adopting circularity solutions to minimise resource use and waste in their operations.
The Climate Action Plan 2025 (CAP 25)1 signals a renewed push in Ireland's climate strategy, aiming for a 51% reduction in greenhouse gas emissions by 2030 relative to 2018 levels and climate neutrality by 2050. As the third statutory update since the Climate Action and Low Carbon Development (Amendment) Act 20212, CAP 25 reinforces sectoral targets while acknowledging the urgent need to accelerate implementation. Although the government reports progress, it also recognises that current efforts are insufficient to close the emissions gap and meet long-term sustainability goals.
In the driver’s seat: sectors at the heart of change
The Government has identified six high-impact sectors that are crucial for achieving these emissions reduction targets: Electricity; Industry; Built Environment; Transport; Agriculture; Land Use, Land Use Change and Forestry (LULUCF)3. These sectors were highlighted based on their significant contributions to greenhouse gas emissions and the potential for impactful changes across the island. While sectoral emissions targets are in place, there are no incentives for businesses in these sectors to contribute to achieving these targets, disconnecting the sector’s targets from their practices.
This article explores the progress made in each high-impact sector against their targets since the Climate Action Plan 20244 and the key opportunities for businesses to support the targets. In July 2025, the Environmental Protection Agency (EPA) published the provisional GHG emissions for 20245, which have been integrated into this analysis.
Electricity
The electricity sector covers all energy generation linked to Ireland’s electricity grid, including electricity generation from fossil fuels, renewable energy and electricity. The sector has one of the smallest carbon budgets and most ambitious plans for emissions reduction, with electrification measures in other sectors increasing demand for decarbonisation. The sector represented 12% of Ireland’s total GHG emissions in 2024 (incl. LULUCF)5.
The targets for the electricity sector are outlined below, along with progress made against these targets since the Climate Action Plan 2024.
Progress shows that, while our overall reliance on fossil fuels is decreasing, the rate at which renewable energy projects are being connected to the national electricity grid is hindered by Ireland’s current planning system. If Ireland is to achieve its renewable energy targets, it is required to install 9 GW of onshore wind, 5 GW of offshore wind and 8 GW of solar-PV by 2030.
Significant upgrades to our grid infrastructure and policy are essential to allow multiple renewable energy installations to feed into the electricity grid in the most efficient way possible, aligning by regional renewable energy strategies. Upcoming interconnectivity projects, such as the Greenlink and Celtic Interconnectors, will enhance Ireland’s electricity imports and provide energy security6.
Industry
The industry sector covers emissions from two types of activity – manufacturing combustion and industrial process emissions. Industrial process emissions primarily arise from cement production, while manufacturing combustion arises from the production of cement, alumina, food and beverage goods, pharmaceuticals and chemicals. Embodied GHG emissions in construction materials and processes are also included in this sector. 80% of this sector’s emissions are in scope of the EU Emissions Trading Scheme (ETS). The sector represented 10.4% of Ireland’s total GHG emissions in 2024 (incl. LULUCF)5.
The targets for the industry sector are outlined below, along with progress made against these targets since the Climate Action Plan 2024.
The primary cause for the reduction of annual emissions can be attributed to the gradual shift from carbon intensive fuels to lower carbon fuels, with significant industry investments in decarbonisation by some of Ireland’s largest industrial emitters driving mitigation. Despite this, the shift towards electrification and zero- or low-carbon fuels in manufacturing will need to be accelerated to deliver on the sectoral targets. In addition to this, there is over-reliance on EU ETS to reduce emissions, as 80% of Ireland’s industrial emissions are covered by the scheme.
Built Environment
The built environment sector covers emissions from residential, public and commercial building stock. The sector aims to retrofit half a million homes by 2030, deploy district heating at scale in dense urban areas, and improve energy performance standards in commercial buildings. The sector represented 12.3% of Ireland’s total GHG emissions in 2024 (incl. LULUCF)5.
The targets for the built environment sector are outlined below, along with progress made against these targets since the Climate Action Plan 2024.
The commercial and public sector face challenges in meeting their sectoral emissions ceiling, with greater emphasis placed on the residential sector’s decarbonisation efforts.
Transport
The transport sector covers emissions from public transport and private vehicles (cars, heavy-duty vehicles, maritime, and aviation). The sector represented 20.2% of Ireland’s total GHG emissions in 2024 (incl. LULUCF)5.
The targets for the transport sector are outlined below, along with progress made against these targets since the Climate Action Plan 2024.
Public transport passenger numbers increased by 24% will continue to rise as public transport becomes a more viable option for commuters, highlighting the need for additional public transport fleet capacity and infrastructure to meet this demand. Accelerated rollout of national EV charging infrastructure is also needed to ensure that transport in the private sector does not negatively impact on emissions.
Agriculture
The agriculture sector covers emissions from enteric fermentation (methane emissions arising from digestive process in livestock), manure management and nitrogen and urea application to soils. The sector represented 35.4% of Ireland’s total GHG emissions in 2024 (incl. LULUCF)5.
The targets for the agriculture sector are outlined below, along with progress made against these targets since the Climate Action Plan 2024.
The reduction in agricultural emissions since can be attributed to the decline in nitrogen fertiliser usage, caused by price inflation due to geopolitical tensions, and the increased use of lower emission fertiliser. On top of this, the total number of cattle reduced by 2.9% in 2024 and the reduction of Nitrates derogation threshold to 220kg/N/ha will further reduce the national herd size. There has also been a substantial uptake in organic farming, with 5,000 farmers now adopting organic farming practices in Ireland.
Land Use, Land Use Change and Forestry (LULUCF)
The LULUCF sector is made up of six land use categories (Forest Land, Cropland, Grassland, Wetlands, Settlements, and Other Land) and Harvested Wood Products. These categories are divided into unchanged land use and land converted to a different use category. While this sector can operate as a carbon sink for the country, it is currently a net source of GHG emissions due to drainage of grasslands on organic soils and exploitation of wetlands for peat extraction. The trend in forest lands acting as carbon sinks is also declining. The sector represented 6.7% of Ireland’s total GHG emissions in 2024 (incl. LULUCF)5.
The targets for the LULUCF sector are outlined below, along with progress made against these targets since the Climate Action Plan 2024.
For Ireland to meet this target, a series of measures and actions have been outlined in the Climate Action Plan 2024. This includes ongoing work oh Phase 2 of the Land Use Review which will inform future policy development. The implementation of the new Forestry Programme will aim to enhance afforestation and rehabilitation efforts in Ireland. Continued investment in understanding carbon dynamics in grasslands and croplands through initiatives such as the National Agricultural Soil Carbon Observatory are also required.
Conclusion
The Climate Action Plan must succeed to ensure Ireland does not fall further behind in its climate targets. While the Government sets clear expectations of its public sector bodies, the private sector has a critical role to play in this journey. Companies should integrate the ambitions of the Climate Action Plan into their own sustainability strategies, seeking opportunities to contribute to their sector’s decarbonisation and collaborating with public bodies go above and beyond their sectoral ambition. Action starts now - will you define a climate-positive future, or become a fossil in tomorrow's sustainable economy?
Summary
Ireland’s Climate Action Plan 2025 warns the country is off track to meet its 2030 emissions target. Businesses in high-impact sectors must invest in mitigation, resilience, and circularity to help close the gap. Sectoral targets exist, but lack incentives for business participation, despite clear opportunities for cost-effective climate action.