Ireland collected a historic record of €5.879 billion in environment-related taxes during 2025, according to official figures released by the Central Statistics Office (CSO). This represents a 7 percent increase—equivalent to roughly €380 million—compared to the €5.499 billion collected in 2024. The total stands as the highest annual amount recorded throughout the CSO’s ten-year monitoring period from 2016 to 2025.
Despite the record cash total, environmental levies made up a smaller proportion of Ireland’s overall tax receipts than they did a decade ago. Environmental taxes accounted for 4.3 percent of total state tax revenue in 2025, down significantly from 7.7 percent in 2016.
Households Pay the Biggest Share
Ordinary households continued to bear the largest financial burden, contributing €3.468 billion, or 59 percent of all environmental tax revenue in 2025. Businesses and economic sectors paid the remaining 41 percent.
Among commercial taxpayers, the services sector contributed the largest portion at €1.5 billion (26 percent of total revenue). The industrial sector paid €700 million (12 percent), while the agriculture, forestry, and fishing sector paid €100 million, or 2 percent of the overall collection.
Energy Taxes Lead Revenue Growth
Taxes on energy products, including heating and transport fuels, remained the single largest source of environmental revenue. Energy taxes surged by 12 percent in 2025 to reach €3.924 billion, accounting for 66.7 percent—roughly two-thirds—of all environmental levies collected.
More than half of this energy total came from excise duty on fuels such as petrol, road diesel, and marked gas oil, which generated €2.09 billion. Carbon tax receipts saw a 10 percent increase, rising from €1.083 billion in 2024 to €1.189 billion in 2025.
Additionally, revenue from the Public Service Obligation (PSO) levy placed on electricity bills experienced a sharp rebound, jumping from €63 million in 2024 to €228 million in 2025. CSO Statistician Clare O’Hara confirmed that the overall surge in environmental tax receipts was primarily driven by higher collections from this electricity levy, fuel excise duties, and the carbon tax.
Transport and Resource Taxes
Transport-related taxes formed the second-largest category, bringing in €1.925 billion in 2025 (32.7 percent of total environmental tax revenue). However, this total dropped by 2 percent compared to 2024. Vehicle Registration Tax (VRT) generated €933 million, while Motor Tax collected from households and businesses brought in €927 million (with businesses accounting for €232 million of that sum).
Pollution and resource taxes—which include the plastic bag levy and landfill fees—remained a small fraction of the overall receipts. This category totaled approximately €30 million, representing just 0.5 percent of total environmental tax revenue, though it rose from €10 million recorded in 2023.
Climate Advisory Council Calls for Reform
The release of these statistics coincides with calls from the Climate Change Advisory Council (CCAC) for the Irish Government to continue increasing the carbon tax toward its goal of €100 per tonne of carbon dioxide by 2030.
The council has urged the Government to phase out fossil fuel subsidies, criticizing temporary excise duty cuts on petrol and diesel as untargeted measures that primarily benefit higher-income households. Instead, advisory bodies advocate redirecting tax revenues toward permanent energy-saving solutions, such as home retrofitting and public transport infrastructure, to support vulnerable families through energy transitions.
