EU
Investment
The European Commission proposed a Regulation to establish the Connecting Europe Facility for 2028-2034, and the rules for providing funding under the Facility to projects in the trans-European networks for transport and energy, including military mobility. In the current period, Irish projects are to receive over €26 million from the EU's Connecting Europe Facility for Transport (emission-reducing port infrastructure at Rosslare and studies to prepare mitigation measures to protect the coastal railway between Dublin and Rosslare from erosion and flooding).
Low-carbon Fuels
The recast gas Directive (EU) 2024/1788 sets out a certification framework for low-carbon fuels, complementing the Renewable Energy Directive. Article 9 requires the Commission to adopt a methodology for evaluating the emission savings of low-carbon fuels by 5 August 2025. The Commission has now published the regulation specifying a methodology for assessing greenhouse gas emissions savings from low-carbon fuels, which may be adopted after the two-month scrutiny period. To be considered low carbon, hydrogen and related fuels will need to reach a threshold of 70% greenhouse gas emission savings compared to the use of unabated fossil fuels. Further information on the delegated regulation is available here: Clarity to hydrogen sector with new EU methodology for low-carbon hydrogen and fuels.
Hydrogen mechanism
The Commission launched a Hydrogen Mechanism to host mechanisms covering hydrogen, raw materials, natural gas and biomethane. The first action of the Hydrogen Mechanism will be a round of matching demand and supply in September 2025 for low-carbon hydrogen and its derivatives (ammonia, methanol, and electro-sustainable aviation fuel (eSAF)).
EU Strategies for Ports and the Maritime Manufacturing Sector
The European Commission is developing an EU Ports Strategy with areas of focus including energy transition, security, including cybersecurity and military mobility, and investment and financial support. It is also developing a strategy to strengthen the competitiveness, sustainability and resilience of the maritime manufacturing sector and the related value chain.
Batteries
Under the EU Battery Regulation (EU) 2023/1542, battery producers and exporters must put in place due diligence policies to prevent or reduce batteries' adverse impacts on the environment, including their waste management. The Council adopted amendments to ease these rules, chiefly by postponing their application by two years.
Cars and Light Commercial Vehicles
The European Commission invites views until 29 September 2025 on CO2 emission standards for cars and vans for a review of the Emission Standards Regulation. It also seeks views in advance of a review of the Car Labelling Directive to better inform consumers purchasing new vehicles and making sustainable choices, in particular regarding CO2 emissions and fuel efficiency, and to support manufacturers in meeting their CO2 emission targets.
IRELAND
Renewable Heat Obligation Bill
Government approval has been given to introduce a renewable heat obligation for 2026-2045, based on Heads for a Renewable Heat Obligation Bill. The scheme would oblige suppliers of fossil fuels used for heat to demonstrate that a proportion of the energy they supply is from a renewable source. The Bill would not provide support to domestic producers but it would seek to encourage support of domestic production by (subject to approval at EU level) applying a multiplier of 0.5 to certificates in respect of domestically produced units of biomethane.
Transport Fuel Policy
The Department of Transport has updated Renewable Fuels for Transport Policy Statement for 2025 to 2027. It contains 19 actions and focuses on the supply side of renewable fuels. A new measure to be implemented is award of Renewable Transport Fuel Obligation certificates (with a multiplier of four) for the supply of renewable electricity at public charge points.
EV Charging
As mentioned in the Energy p, the CRU is consulting until 11 September 2025 on PR6, the framework for approving investment in 2026-2030 in the transmission and distribution system. Proposed baseline allowances total €14.1 billion. The consultation indicates that outcomes are intended to include network infrastructure that can support the connection of up to 1 million electric vehicles.
National Development Plan
Under review of the NDP, €24.33 billion has been allocated to the Department of Transport for the period up to 2030.
Climate Action Litigation
As mentioned in the Construction p, in Alternative A5 Alliance v Northern Ireland Department for Infrastructure[2025] NIKB 42, the High Court in Northern Ireland quashed the Department for Infrastructure's decision to begin the first phase of construction of the A5 Western Transport Corridor dual carriageway project. One of the grounds for quashing the decision was that it failed to comply with p 52 of the Climate Change (Northern Ireland) Act 2022, which requires the Department to exercise its functions, so far as is possible to do so, in a manner consistent with the achievement of emissions reduction targets and carbon budgets. The judgment considers the actions that are required to be taken to comply with p 52.
Though there are differences in the legislation, similar issues arise in this judgment as regards infrastructure development, as in the case of Coolglass Windfarm Ltd v An Bord Pleanála [2025] IEHC 1, which concerns p 15 of the Climate Action and Low Carbon Development Acts, and is under consideration in the Supreme Court in Ireland.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
