The Irish government will give "further consideration" to an increase in the carbon tax as part of the upcoming Budget, Tánaiste Micheál Martin has confirmed. This follows a decision earlier in April 2026 to postpone a scheduled €7.50 per tonne increase that was due to take effect in May.
The postponement was announced by Finance Minister Jack Chambers, who cited the need to ease cost-of-living pressures on households. The carbon tax is a key part of Ireland's climate strategy, designed to incentivize a reduction in fossil fuel use.
Minister for the Environment, Climate and Communications, Eamon Ryan, stated that the tax increase would be revisited in the context of the Budget later in the year. The government remains committed to its legally binding carbon budget targets, which require steady annual increases in the tax rate until 2030.
Opposition parties and some advocacy groups have criticized the delay, arguing it undermines climate policy and creates uncertainty. The final decision on the timing and scale of the next increase will be a central feature of Budget 2027 discussions.
