Liquid Gas Ireland (LGI) has today (15.04.26) called for clarity following the European Commission’s detailed opinion on Ireland’s proposed Renewable Heat Obligation (RHO), warning that the Commission’s intervention introduces significant uncertainty at a critical moment for Ireland’s heat decarbonisation strategy.
The Renewable Heat Obligation is a Government scheme that would require suppliers of fossil fuels to ensure that a proportion of the energy used for heating is sourced from renewable alternatives, with the aim of reducing emissions across the heat sector.
The European Commission’s detailed opinion raises concerns about several elements of the proposed scheme, including limits on the importation of renewable fuels from other EU Member States for heat generation by Irish consumers, the placing of obligations on fossil fuel suppliers, the use of certificate multipliers for certain technologies, the linking of heat decarbonisation with agricultural methane objectives, and the proposed duration of the scheme.
While the opinion does not reject the policy, it means the Government must now carefully examine and, where necessary, revise the design of the RHO to ensure compliance, risking further delays at a critical time for investment and planning across the heat sector.
The Commission’s assessment does not question the role of renewable gas, biomethane, or wider decarbonisation objectives. Instead, it underscores a core principle of the EU internal market: policy mechanisms must not discriminate between energy sources on the basis of origin.
LGI believes that the Commission’s intervention should be seen as an opportunity to reset and strengthen Ireland’s policy design and provide the regulatory certainty required by farmers, energy suppliers, and investors, while ensuring that climate targets are achieved efficiently and credibly.
Commenting on the development, Alan Farrell, Senior Director of Government Affairs and Policy at Liquid Gas Ireland, said: “We are ready to engage constructively with Government as this process moves forward. What is most important now is clarity and certainty for the sector. Businesses, farmers and energy users need confidence in the direction of policy so they can invest and plan effectively. A stable, technology neutral framework will be essential to deliver emissions reductions efficiently, while ensuring fairness across all renewable heat solutions, including the off grid renewable gas sector. This needs to be managed in a way which also ensures affordability for the end consumer."
