Ireland collected a record €5.879 billion in environment-related taxes during 2025, according to new figures published by the Central Statistics Office.
Receipts increased by 7%, or about €380 million, from €5.499 billion in 2024. This was the highest annual total recorded during the CSO’s 2016–2025 reporting period.
Households carried the largest share of the burden, contributing €3.468 billion, equivalent to 59% of the total. Businesses and other economic sectors paid most of the remainder.
Energy-related taxes continued to generate the most revenue. They rose by 12% to €3.924 billion, accounting for roughly two-thirds of all environmental taxes collected during the year.
Excise duty on petrol, road diesel, marked gas oil and other hydrocarbon fuels generated €2.09 billion. Carbon tax receipts increased by 10%, from €1.083 billion to €1.189 billion.
Revenue from the Public Service Obligation Levy on electricity consumers also rose sharply, increasing from €63 million in 2024 to €228 million in 2025.
CSO statistician Ms Clare O’Hara said the overall increase was mainly driven by higher receipts from the electricity levy, fuel excise duties and carbon tax.
Transport-related taxes brought in a further €1.925 billion, although that figure was 2% lower than in 2024.
Vehicle Registration Tax generated €933 million, while motor tax paid by households and businesses raised a combined €927 million, with businesses paying €232 million.
Pollution and resource taxes remained a very small part of the total. Levies including the plastic bag levy and landfill levy generated approximately €30 million, representing just 0.5% of environmental tax receipts.
Climate advisers call for targeted supports
The figures were published as the Climate Change Advisory Council urged the Government to maintain the planned increase in the carbon tax to €100 per tonne of carbon dioxide by 2030.
In its recommendations for Budget 2027, the council called for environmentally harmful fossil-fuel subsidies to be phased out. It argued that recent emergency reductions in fuel excise duty were insufficiently targeted and were likely to provide the greatest benefit to higher-income households.
The council said future cost-of-living measures should focus on vulnerable households while helping people permanently reduce their dependence on fossil fuels through measures such as home retrofitting and improved public transport.
The Government has extended temporary fuel-tax reductions until September 1st, 2026, after which the previous rates are expected to be restored gradually over four months. The extension is estimated to cost the Exchequer €270 million.
The advisory council also called for greater transparency over carbon-tax spending. It cited findings that only 61% of ring-fenced revenue was spent on its intended measures between 2020 and 2023.
Despite reaching a record cash total, environmental taxes represented 4.3% of Ireland’s overall tax revenue in 2025, compared with 7.7 per cent in 2016.
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