Ensuring a Just Transition through Investment

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Appendix 2 Ensuring a Just Transition through Investment

Keeping public transport affordable

Just transition is a core principle of this Strategy and will guide the implementation of the recommendations outlined in Appendix 3. More broadly, the Just Transition Framework is guiding the Department of Transport’s approach to implementing climate action policies, ensuring that investment is targeted to support people as the economy decarbonises.

ᴏ Approximately 1.6m (or 30% of the population) adults and children in Ireland can travel for free on PSO services, as well as on certain commercial bus services under the Free Travel Scheme

While Just Transition primarily refers to an equitable transition for those people whose jobs/ employment are directly impacted by the green transition, it also encompasses wider equity, justice and wellbeing considerations as well as the ‘leave no-one behind’ principle, which is enshrined under the United Nation’s Sustainable Development Goals (SDGs). By making sustainable forms of transport more affordable and accessible, workers can be shielded from the impacts of decarbonisation in terms of cost and provided with greater opportunities for engaging in and taking up roles/jobs in the low-carbon economy of the future.

ᴏ An additional 1m people between the age of 9 and 25 benefit from significantly reduced fares, with those between 19 and 25 receiving a 50% discount with the Young Adult Card

ᴏ There is also no charge for people aged 16+ who travel as companions with persons over 70 years of age

ᴏ Therefore, circa 50% of the population have access to free travel or significantly reduced fares, while fares for the remainder of the population are also heavily subsidised

Key initiatives to reduce or eliminate fares have been put in place in recent years, including the introduction of the 90-minute fare, and the launch of the Young Adult Card. In 2025, free public transport was extended for children to include those aged 5 to 8 years. Free travel for all children under-five on subsidised public transport services was introduced in 2017.

Just Transition principles are also aligned to efforts to protect those who are transport poor, or those vulnerable groups or micro-enterprises who are most at risk of transport poverty and/ or the impact of rising fossil fuel prices as Ireland and Europe decarbonises. For this reason, it is recognised that Just Transition in transport can be best achieved by (1) keeping public transport affordable and (2) providing better infrastructure and services to more people and enterprises.

Taken alongside more longstanding initiatives such as the Department of Social Protection’s Free Travel Scheme for older and disabled people, these measures ensure that approximately 1.6 million people in Ireland can travel for free on PSO services and some commercial bus services. In September 2025, a new Free Travel Companion scheme was launched, meaning anyone over 16 years of age can travel for free when acting as a companion for persons aged 70 or over.

Following a revision of Ireland’s National Development Plan, as part of a commitment under the Programme for Government 2025, over €24 billion has been pledged for transport infrastructure over the period 2026-2030. In 2026, and to support the above objectives, the Department of Transport has been allocated more than €4.7 billion to progress the continued roll-out of active travel and public transport infrastructure as well as the continuation of enhanced Public Service Obligation (PSO) and Local Link services. The implementation of recommendations under the Moving Together strategy is heavily reliant on the concurrent delivery of feasible and affordable alternatives to the private car – and an environment that makes it easier for people to choose healthier, more efficient and less polluting journeys.

In addition to the foregoing, more than one million young people benefit from significantly reduced fares (those aged 9 to 25) while PSO fares for the remainder of the population are also heavily subsidised, by up to 64% on the cost per passenger (in 2023), through the Exchequer. The cost of using public transport can also be substantively reduced for employees through the Taxsaver Commuter Ticket Scheme.

Providing better infrastructure and services to more people

Collectively, these initiatives serve to make sustainable transport a more affordable option for the whole population, but particularly families, young people and those most vulnerable to fossil fuel increases. Average fares on all PSO transport services per passenger in Ireland remain low in comparison to other countries and are in line with the commitment in the Programme for Government to keeping fares low and affordable, while acknowledging the need to develop a sustainable funding model for PSO services into the future.

The 2025 Programme for Government commits to streamlining the delivery of major transport projects, from planning to execution and to providing extra funding for the improvement of transport networks countrywide to promote increased business investment in the economy and the supply of new housing. It also places a focus on linking new housing developments to public transport and schools through Transport Oriented Development, ensuring easy access for residents and visitors. Moreover, it commits to developing a new Sustainable Mobility Action Plan which promotes sustainable modes and transportoriented development to address congestion, improve air quality and reduce noise, and enhance attractiveness and accessibility of cities, neighbourhoods and town centres. The work to develop this Plan is underway and will underpin the following:

As well as keeping public transport more affordable, schemes like the Cycle to Work Scheme make it more affordable for employees to purchase bikes, e-bikes and cargo bikes, thus providing another avenue for offsetting the impacts of rising fossil fuel prices. Other, more targeted measures are also being trialled. For example, the Department of Transport, in conjunction with the Department of Rural and Community Development and the Gaeltacht, have introduced a pilot initiative (2022-2025) via Pobal’s Community Services Programme to provide high quality up-cycled bicycles and e-bikes to those on low incomes and/or are marginalised/ disadvantaged. Just Transition is at the heart of these schemes.

Addressing Public Transport Gaps in Rural Ireland

A key aspect of Just Transition is addressing challenges specific to rural areas. Rural Recognition, along with Just Transition, are among the key principles shaping this Strategy. It is well recognised that non-urban areas in Ireland experience hotspots of forced car ownership and transport disadvantage, including high levels of transport poverty. Under Ireland’s National Sustainable Mobility Policy, an enhanced rural transport network is being implemented through the 5-year Connecting Ireland Rural Mobility Plan. To date, 185 new and enhanced services have been introduced since the Plan was launched in 2022. New connections have been made to 240 towns and villages, 41 colleges, 61 hospitals and 71 new connections to onward rail services.

Ensuring equity of access to Primary and Post-Primary Education

As outlined in Chapter 5 of this Strategy, the School Transport Scheme is transporting over 181,000 children in 2026. This Scheme supports those households most at risk of transport poverty and ensures equity of access to education through the provision of low-cost school transport services i.e. annual fees for the service are currently €50 for primary students, €75 for post-primary students and €125 for a family ticket (for the 2025-2026 school year). There are no fees for children with special needs who avail of services under the Scheme. It is anticipated that access to the Scheme will be expanded in the coming years so that an additional 90,000 pupils can be carried by 2030 when compared with 2024. This will be facilitated through pilots that integrate school transport services with general public transport services as well as expanded eligibility criterion under the Scheme.

Funding for Rural Transport has seen a five-fold increase over the last decade, with commensurate increases in passenger numbers, rising from 1.76m in 2015 to 6.97m in 2025. The Programme for Government 2025 commits to increasing Local Link services in rural areas to better connect villages, towns, and cities, and continuing the rollout of Connecting Ireland Rural Mobility Plan and investment in new town bus services.

Continuous Investment in Public Transport Infrastructure

platforms to boost the rail network’s resilience and capacity. Funding is provided to support the full delivery of these projects by 2030.

IIreland is committed to the delivery of major public transport projects. That commitment is evidenced by last year’s review of the National Development Plan, which allocates approximately €10.1 billion for public transport infrastructure investment from 2026 to 2030, with a further €2 billion from the Infrastructure, Climate and Nature Fund specifically to start construction on MetroLink. This €12.1 billion investment marks a major increase in public transport capital funding, more than double the level seen in the previous five years.

The Strategy also identifies Major Projects to be progressed for the longer-run, involving intercity electrification and significant capacity upgrades on the rail network. Included among these Major Projects is the reinstatement of the Western Rail Corridor between Claremorris and Athenry, and funding is provided in the Sectoral Plan to advance this project into construction.

With their flexibility and adaptability, buses are the foundation of our public transport systems, and BusConnects is the programme to improve bus services in our cities. To date, BusConnects Dublin has made the most progress, with all 12 Core Bus Corridor schemes approved by An Coimisiún Pleanála. The Liffey Valley to the City Centre scheme is the first to enter construction, to be shortly followed by Ballymun / Finglas to the City Centre in the second half of 2026. BusConnects in the other cities is at various stages of advancement, and the National Development Plan is to support construction on new Sustainable Transport Corridors in Cork (subject to planning) and Galway. This will significantly improve the infrastructure available to support the continued investment in bus services, supported through the PSO programme.

In addition to the Government’s support for MetroLink through the provision of funding, the project has also seen other positive developments, such as the granting of the Railway Order. With planning permission and funding secured, significant momentum has been gained, with procurement commencing in 2026 and construction earmarked to start by the end of 2027.

Investment in the Sectoral Plan provides funding to advance the DART+ Programme into construction, starting with DART+ West to enter construction from 2027, which will act as a key enabler for the rest of the Programme.

Improving Accessibility of Services and Sustainable Options

In Cork, Phase 1 the Cork Area Commuter Rail Programme, which consists of a signalling upgrade, construction of a through-platform at Kent Station, which opened in April 2025, and double-tracking from Glounthaune to Midleton, will be completed in 2026. The Sectoral Plan provides funding to commence Phase 2 starting with new train stations at Blackpool and Dunkettle and initial electrification works and depot construction.

Accessibility and inclusion are central to the principle of Just Transition. In addition to making new transport infrastructure accessible from the design stage, Ireland’s Public Transport Accessibility Retrofit Programme is making legacy infrastructure and facilities accessible for everyone, including disabled people and older people, in line with SDG Target 11.2 and the UN Convention on the Rights of Persons with Disabilities. The Programme consists of subprogrammes, including in rural and regional areas, to upgrade accessibility at bus and train stations, increase the number of wheelchair accessible taxis and provide supports to enable disabled people

The Rail Project Prioritisation Strategy, which was prepared with the assistance of the European Investment Bank, the Department of Infrastructure in Northern Ireland, the NTA and rail agencies across the island, was published in December 2025. This outlines how to best sequence and optimise the recommendations of the All-Island Strategic Rail Review which was launched in July 2024.

Accessible Local Link Services

The Strategy specifies short-term rail infrastructure investments, referred to as Early Interventions, to be delivered in the coming years, including a series of new track passing loops and

Expanding the Provision of Shared Mobility Options

to travel independently on public transport. The Programme was allocated €25m in 2025 which was a 67% increase on the 2024 allocation. This increased allocation will be maintained under the National Development Plan 2026-2030. Ireland’s National Human Rights Strategy for Disabled People 2025-2030 also contains a number of priority accessible transport actions, some in the area of the associated Built Environment and Active Travel. The Strategy emphasises the importance of using Universal Design and Whole of Journey principles, and engaging with disabled people to ensure accessible transport for everyone and especially for disabled people.

Shared mobility is recognised for its high transformative potential in transport decarbonisation, and in the sustainable and compact growth of our urban centres. Equally, shared mobility hubs can expand journeymaking choices, by providing easy access to a range of transport modes, such as bikes, e-bikes, e-scooters, e-cargo bikes and electric vehicles. The provision of shared mobility services and hubs can also help to reduce car ownership by offering a cost-effective alternative to owning a personal vehicle, alleviating the financial burden of car maintenance, insurance, and fuel.

Ongoing Investment in Active Travel Infrastructure

On-demand shared services have been operating in Ireland for some time. Over the last decade, publicly funded bike-sharing schemes have been rolled out across Ireland’s five cities. In addition to these publicly funded initiatives, a growing number of services are now being operated on a commercial basis under licence or contract with local authorities. For example, car-sharing services have been available in Ireland for over a decade and an increasing number of car-sharing companies are now in operation. Other companies are providing access to shared pedal bikes and e-bikes in towns across the country, with Ireland’s first shared e-scooter scheme launched in Wexford in August 2024.

Significant investment in walking and cycling infrastructure is set to continue into 2026 for walking and cycling projects (circa €1 million every day). Most of this funding is allocated to the National Transport Authority (NTA) for its Active Travel Infrastructure Programme the remainder is allocated to Transport Infrastructure Ireland (TII) for Greenways. As well as being a tourism proposition, Greenways also provide alternative and safe infrastructure in areas of the country that are transport poor and heavily reliant on cars. Many of the existing and planned Greenways routes pass though electoral divisions which have been scored as disadvantaged per the Pobal Deprivation Index.

Acknowledging the potential of shared mobility across multiple policy objectives, Ireland is working hard to expand the availability of related services. For example, the bike sharing schemes in the cities of Cork, Limerick, Galway and Waterford are being expanded, to encompass wider areas of operation and more modes (e.g. e-scooters, e-bikes, e-cargo bikes etc), with enhanced services coming on stream from late 2026. The 2025 Programme for government also commits to the more specific goal of coordinating bike and e-bike rental programmes across further and higher education campuses.

By investing in extensive active travel infrastructure and networks, those most impacted or vulnerable to fossil fuel increases can be provided with a safe and affordable alternative to private car use for short journeys. The 2025 Programme for Government reasserts the need for investment in dedicated infrastructure for walking and cycling, in consultation with communities and people of all abilities including older people and people with disabilities, to promote active travel across Ireland for those commuting or enjoying the countryside. It also commits to:

ᴏ increasing investment in greenways, blueways and pedestrian-friendly infrastructure,

ᴏ expanding the Safe Routes to School initiative, and

ᴏ providing a dedicated maintenance budget to each local authority to maintain active travel infrastructure, including footpaths.

Also, in keeping with a Programme for Government pledge to establish mobility hubs in every local authority area, a new Mobility Hub Pilot Programme is also being developed to test how mobility hub networks might be designed and operated on a long-term basis and to inform a model for more widespread delivery of hub networks nationwide. While the business case for the Programme is still in development, it is intended that approximately 300 hubs will be rolled out across five urban locations from 2027.

In respect of the latter i.e. the zero-emission heavy duty vehicles (ZEHDV) scheme, grants are made available to companies and enterprises who wish to buy zero emission heavy duty vehicles (instead of buying diesel equivalent). The scheme, which has a budget of €4m in 2026, provides greater grant aid to smaller companies verses larger companies (60% of the cost differential for small companies, 50% for medium companies and 30% for larger companies). Included in this budget is the Zero Emission Heavy Duty Vehicle Infrastructure (ZEHDVI) scheme, which supports companies and enterprises with the costs of charging infrastructure and related technical equipment. This ZEHDVI scheme also gives greater support to smaller companies - 50% of the cost for small companies, 40% for medium companies, 20% for larger sized companies. Similarly, the permissible funding levels for ZEHDVI allows for a 10%-15% uplift of funding for companies in disadvantaged areas (defined though Section 6 of Article 36 of GBER) - based on the company size and location of the investment relative to the regional aid map.45

These initiatives reflect the growing ambition for shared mobility to be a key player in Ireland’s transport landscape, given its potential to offer an affordable alternative to private car use.

Supporting captive car users and the transition to zero emissions vehicles

The Moving Together strategy acknowledges that many people are locked into car dependency due to various personal circumstances. Continuous investment in our road networks is vital to ensuring connectivity and safety for car drivers, as well as for bus travel, cycling and walking. The 2025 Programme for Government commits to increasing funding for new roads as part of the NDP review. It also commits to an increase in funds for the protection and renewal of the road network to address maintenance backlogs.

These supports underpin Ireland’s Regional and Local EV Charging Network Plan, which provides a pathway for the accelerated delivery of regional and local networks of public EV charging infrastructure in cities, towns and villages across Ireland, in line with both national and European ambitions for cleaner transportation. This Plan, which was published in 2025, ensures a cohesive and standardised approach and will be led by local authorities, working together to develop regional and local strategies to promote a unified and efficient rollout of charging infrastructure and to facilitate the equitable transition to EVs.

To ensure drivers and businesses also have the opportunity to access lower running costs through zero-emissions private or commercial transport, where alternative options are not available or feasible, a generous range of supports is currently in place to support a transition to electric. These include a purchase grant for battery electric vehicles (BEVs); a home charging scheme; an apartment charging scheme; a benefit-in-kind tax relief for BEVs and home chargers; a VRT relief of up to €5,000 for BEVs; accelerated capital allowances for BEVs and a low rate of annual motor tax. From a business perspective, among some of the supports available is a grant for taxi drivers to make the switch to an electric vehicle (EV); and a grant for HDVs to bridge the gap between a zero-emission vehicle and a fossil fuel vehicle.

The new Programme for Government 2025 commits to developing a new National EV Infrastructure Strategy which ensures EV charging is ahead of demand and in line with EU mandated obligations, including neighbourhood charging for those who do not have access to home charging and charging across the main transport arteries. It commits to substantially increasing the number of publicly available EV charging points, ensuring better coverage nationwide, and reducing the average distance between EV recharging points. It also commits to making EVs more affordable by examining the current EV grant system and the introduction of additional incentives and reviewing customs duties on second-hand EV imports.

45 https://www.gov.ie/en/department-of-enterprise-tourism-and-employment/publications/regional-aid-map-for-ireland/

In summary

As acknowledged in the NDP, there is a need for record levels of capital investment in public transport infrastructure to be complemented by increased and expanded public transport services as supported under the Public Service Obligation (PSO) subsidy. Continued funding will need to be secured yearly from the budget process to meet existing levels of PSO services between 2026 to 2030. To maximise the benefit of capital investment, and to ensure Just Transition principles are upheld, the Department of Transport will continue its close engagement with the Department of Public Expenditure Infrastructure, Public Service Reform and Digitalisation to align current requirements for services as well as rollout of demand management measures with the delivery of major infrastructure projects.

Without the large-scale investment envisaged in the NDP, the transport sector would be at critical risk of significantly underachieving in its effort to cut transport emissions in half by 2030. Demand management measures can help to minimise that risk, by complementing the investment envisaged in the coming years - through greater use of the infrastructure and services provided and greater efficiency through the consequential reduction in overall car journeys. For this reason, it is anticipated that the deployment of many demand management measures will be rolled out in tandem with, or subsequent to, the planned investment to 2030 and beyond, ensuring that ‘no one is left behind’ in our transition to a better and more efficient transport system.