A just transition means moving to a low-carbon economy in a way that is fair – ensuring that the workers, communities, and regions most affected by the shift away from fossil fuels are supported rather than left behind. It is the principle that climate action and social justice must go together.
Think of it like renovating a house while people are still living in it. You cannot just rip out the old heating system and leave the family in the cold while you install the new one. A just transition makes sure there is a plan for the people inside the house, not just for the building itself.
🌿 Why Just Transition Matters in Ireland
Ireland’s legally binding target of a 51% emissions cut by 2030 and climate neutrality by 2050 requires fundamental changes across the economy. Power stations close. Peat harvesting ends. Farming practices change. Carbon taxes rise. New industries emerge. The question is not whether this transformation happens – it is whether the people most affected get a fair deal.
Ireland already has direct experience of what happens when a transition hits hard and fast. The closure of peat-fired power stations and the end of commercial peat extraction by Bord na Móna fundamentally changed the economy of the Midlands – a region where peat harvesting had been a major employer and a core part of local identity since the 1940s. Communities in Offaly, Laois, Longford, Westmeath, Roscommon, and parts of Galway, Kildare, and Tipperary saw jobs disappear and businesses lose their customer base. A European Movement Ireland report in November 2025 noted the emotional toll of the closures, with affected communities reporting feelings of abandonment due to limited consultation and unclear communication.
But just transition is not limited to peat workers. Ireland’s first Just Transition Commission, chaired by Ali Sheridan and established as an independent advisory body, made this clear in its June 2025 introductory report: the concept must shift beyond the Midlands to become a national priority. The Commission identified rural communities, farmers, coastal areas, people on low incomes, members of the Travelling community, and other marginalised groups as all needing to be part of the conversation.
🌿 The Midlands – Ireland’s Just Transition Test Case
Bord na Móna announced its exit from peat harvesting in 2020 as part of its Brown to Green strategy. The company suspended all operations and reassigned workers to its Enhanced Peatland Rehabilitation Scheme (EPRS) – a €108 million government-funded programme to restore 33,000 hectares of previously harvested bogland across 82 bogs. The scheme protects the storage of an estimated 100 million tonnes of CO2 and is expected to avoid 3.2 million tonnes of emissions by 2050. By 2025, over 20,000 hectares had been rehabilitated.
Critically, Bord na Móna committed that no jobs would be lost. Former peat workers were redeployed into rehabilitation, renewable energy, and waste recovery. The company has since transformed into a major renewable energy business, operating 1 GW of renewable energy assets with a 5 GW pipeline in onshore wind, solar, and battery storage. Its €1 billion joint venture with SSE Renewables aims to deliver up to 800 MW of new onshore wind. Greenhouse gas emissions fell 38% year-on-year in its most recent financial year.
Former employees have also been supported into self-employment through the New Beginnings programme, with 20 new businesses formed and 35 jobs created across the Midlands. The Accelerate Green programme has supported over 60 sustainability-focused companies and helped create more than 700 jobs since its 2022 launch.
🌿 EU Just Transition Fund in Ireland
The EU Just Transition Fund (JTF), co-funded by the government and the EU, provides up to €169 million for the wider Midlands region. By November 2025, 172 projects had received over €121 million in funding across eight counties: Laois, Longford, Offaly, Roscommon, Westmeath, and parts of Galway, Kildare, and Tipperary.
Projects span peatland restoration, bioeconomy development, skills training, circular economy initiatives, tourism, and social enterprise. Almost €60 million has gone to tourism projects through Fáilte Ireland’s Regenerative Tourism and Placemaking Scheme. Other examples include the redevelopment of Emily Square in Athy (€2.7 million), composting bark alternatives for horticulture to replace peat, and social enterprise training for transition year students engaging over 500 young people.
A further €30 million was announced in early 2026 through the START programme to continue economic, environmental, and social transformation of the region, administered by Pobal on behalf of EMRA.
However, the fund has faced criticism. European Movement Ireland’s November 2025 briefing highlighted three key challenges: economic viability of supported projects, complexity of the funding application process, and the need to respect rural identity. The report recommended simplifying applications, improving expert grant support for community groups and SMEs, and increasing investment in upskilling and rural infrastructure.
🌿 How Carbon Tax Revenue Supports a Just Transition
Ireland’s carbon tax – currently €71 per tonne of CO2 on petrol and diesel, legislated to reach €100 by 2030 – is the most direct financial mechanism linking climate action to social fairness. All additional revenue is ringfenced for socially progressive measures. In Budget 2026, a total of €951 million in carbon tax revenue was allocated across three pillars:
- 🌿 €558 million for residential and community energy upgrades – funding SEAI grants for retrofitting, heat pump installation, and solar PV. The Warmer Homes Scheme, which provides fully funded retrofits to low-income households, has seen an 11-fold increase in funding since 2020.
- 🌿 €209 million for climate action and environmental leadership – supporting biodiversity, decarbonisation programmes, and community climate action officers in every local authority.
- 🌿 €82 million specifically for Just Transition in the Midlands – projects including decarbonising rural bus routes, supporting private bus operators to switch to electric vehicles, wetland restoration, and nature and biodiversity programmes.
The EU Social Climate Fund will provide up to €663 million for Ireland between 2026 and 2032 to support vulnerable groups in the energy transition, adding another major funding stream on top of national carbon tax revenue.
The principle behind all of this is that those who can least afford the transition should be the first to benefit from it – through warmer homes, lower bills, and new employment opportunities rather than just higher costs.
🌿 Just Transition Beyond the Midlands
The Just Transition Commission’s 2025 report made seven key recommendations. At their core was an urgent call for the government to develop a bold, nationwide just transition strategy covering all sectors and communities, not just the Midlands. Specific recommendations included:
- 🌿 Develop a clear strategic vision for a just transition that identifies those most at risk and outlines how the transition will benefit all of society.
- 🌿 Establish indicators to monitor Ireland’s progress toward a fair transition, tracking who is most affected.
- 🌿 Map and review available data, addressing gaps in just transition evidence.
- 🌿 Build understanding of vulnerabilities across sectors – agriculture, transport, energy, housing – not just peat.
- 🌿 Integrate just transition into all public climate communication using inclusive language and meaningful engagement with lived experiences.
The EPA has also published a Just Transition Indicator Framework identifying six essential domains: energy, transport and connectivity, buildings, agriculture and land use, employment and skills, and participation and community engagement. This gives Ireland a structure for measuring whether the transition is actually fair – not just whether emissions are falling.
For farmers facing a 25% emissions reduction target, for households struggling with energy poverty (over 301,000 families were in arrears on electricity bills by mid-2025), and for workers in industries being decarbonised, just transition is not an abstract concept. It determines whether climate policy builds public support or destroys it.
🌿 Frequently Asked Questions
🌿 What does just transition mean in simple terms?
It means making sure the move away from fossil fuels is fair to everyone – especially workers who lose jobs, communities that lose industries, and households facing higher energy costs. As the Just Transition Commission put it, just transition is the chance to “reimagine and reshape Ireland’s economy and society to be more inclusive, resilient and sustainable.” Nobody should be left behind.
🌿 Who benefits from the EU Just Transition Fund in Ireland?
The fund targets the wider Midlands region across eight counties most affected by the end of peat extraction. Up to €169 million is available, and over €121 million had been allocated to 172 projects by late 2025. These cover tourism, enterprise, training, peatland restoration, bioeconomy, and community development. A further €30 million was announced in early 2026 through the START programme.
🌿 How does the carbon tax support a just transition?
All carbon tax revenue is ringfenced for socially progressive measures. Budget 2026 allocated €951 million – including €558 million for home energy upgrades, €209 million for climate and biodiversity programmes, and €82 million specifically for the Midlands just transition. The Warmer Homes Scheme provides completely free retrofits to qualifying low-income households, and its funding has increased 11-fold since 2020.
🌿 What happened to Bord na Móna workers when peat harvesting ended?
Bord na Móna committed that no jobs would be lost. Workers were redeployed from peat harvesting into bog rehabilitation, renewable energy, and waste recovery. The company now operates 1 GW of renewable energy assets with a 5 GW development pipeline. Its New Beginnings programme has helped 20 former employees start businesses, and the Accelerate Green programme has supported over 60 companies and 700 jobs since 2022.