Rural Ireland needs fair climate supports in Budget 2027 for a just transition
Budget 2027 must support affordable, practical heating solutions for off gas grid communities, says Liquid Gas Ireland
Rural households risk being priced out of Ireland’s climate transition unless Budget 2027 delivers fair, practical support for off gas grid communities, Liquid Gas Ireland (LGI) has warned in its prebudget submission.
LGI highlights a widening gap between national decarbonisation policy and the reality facing rural homes and businesses that are off the natural gas grid, many of which are not suited to electrification alone. The SEAI’s National Heat Study confirms that heat pumps will not be viable in all cases due to building age, cost and location, leaving tens of thousands of households with limited pathways away from high carbon fuels such as kerosene, coal and peat. At the same time, policy support for decarbonisation pathways like biomethane is largely directed towards on-grid users, leaving communities located away from the natural gas grid with fewer practical and supported options to transition.
This disconnect risks leaving rural consumers facing higher costs and fewer viable options than their urban counterparts. Without targeted support, many off natural gas grid homes and businesses will remain reliant on carbon intensive heating fuels, undermining both affordability and emissions reduction efforts.
LGI is calling for a balanced, technology neutral approach to decarbonisation, with renewable liquid gases such as BioLPG and rDME providing a practical, scalable and lower carbon solution for rural Ireland.
“Rural communities cannot be expected to shoulder disproportionate costs or face limited options in the transition to net zero,” said Alan Farrell, Senior Director of Government Affairs & Policy at Liquid Gas Ireland. “Renewable liquid gases offer an immediate, lower carbon pathway using existing systems, ensuring that no home or business is excluded from climate progress.”
Renewable liquid gases, including BioLPG and rDME, can reduce greenhouse gas emissions by up to 90% compared to fossil fuels, in line with the EU Renewable Energy Directive. They can be used in existing and renewable ready heating systems, enabling consumers to transition to lower carbon energy without the need for costly and disruptive system replacements.
Key Budget 2027 recommendations
Liquid Gas Ireland has outlined five core measures to ensure a fair and effective energy transition:
- Ensure parity of support for off gas grid homes and businesses
Government must extend all renewable gas incentives and decarbonisation supports to liquid gas, ensuring households and businesses outside the natural gas network are not disadvantaged. A mixed technology approach will provide cost effective pathways while avoiding widening the rural/urban divide.
- Use the Climate and Nature Fund to support affordability
Targeted allocations from the Infrastructure, Climate and Nature Fund are needed to offset additional costs associated with the transition to renewable liquid gas, as well as the impact of the Renewable Heat Obligation. This will keep lower carbon options affordable, prevent energy poverty and support uptake in rural areas.
- Revamp SEAI grants to reflect a mixed technology approach
Liquid Gas Ireland is calling for expanded and restructured SEAI retrofit supports to include renewable ready gas boilers, hybrid heating systems and renewable liquid gases. This would enable a phased and more affordable transition for rural households.
- Support rural SMEs and off gas grid businesses
Policies must avoid imposing disproportionate energy costs on SMEs in rural areas. The submission calls for expanded supports such as the SEAI Support Scheme for Renewable Heat, alongside safeguards to maintain competitiveness and protect jobs.
- Incentivise coproduction of renewable liquid gas
Targeted Budget 2027 research and development funding must be introduced to support innovation and incentivise the co-production of renewable liquid gases under the National Biomethane Strategy and Renewable Heat Obligation.
Without these measures, there is a real risk of rising energy costs, increased energy poverty and slower progress towards national climate targets, particularly in sectors that are harder to decarbonise.
“Rural Ireland has the potential not only to participate in the energy transition, but to lead it,” added Alan Farrell. “With the right supports in Budget 2027, liquid gases can form a key pillar of a just, secure and achievable pathway to net zero.”
Click below to read the full submission.
