Energy Taxation Directive (ETD)

UN Sustainable Development Goals

Renewable Energy – Amended Renewable Energy Directive

The 2030 Agenda for Sustainable Development provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. At its heart are 17 Sustainable Development Goals (SDGs), which reflect the need for all countries to urgently act as a global partnership.

As part of its Fit for 55 package, the Commission also adopted a legislative proposal for an amendment to the Renewable Energy Directive (RED) which came into force in 2023. The amended RED contains revised targets for renewable energy consumption in transport, of 29% energy share (known as the ‘RES-T’) or a 14.5% GHG reduction by 2030.

Sustainable transport is mainstreamed across several SDGs and targets, especially those related to food security, health, energy, economic growth, infrastructure, and cities and human settlements.

The EU target for renewable energy across all economic sectors has also been increased in the RED to 42.5% by 2030 energy share. Member States were required to set out interim targets in their submissions to the European Commission on National Energy and Climate Plans (NECP) by June 2024, against which compliance with the 2030 target is to be assessed. On 28 May 2025, the Commission published its EU Wide Assessment of the final updated National Energy and Climate plans (NECPs) accompanied by a Staff Working Document with the individual assessment of 23 final updated NECPs submitted and evaluated to that date.

Of specific importance to transport, and integral to the principles of this Strategy, are SDG targets 3.6 and 11.2:

ᴏ SDG Target 3.6 – By 2030, halve the number of global deaths and injuries from road traffic accidents.

ᴏ SDG 11.2: By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons.

Energy Taxation Directive (ETD)

The EU’s ETD entered into force in 2003 and lays down structural rules and minimum excise duty rates for the taxation of energy products used as motor and heating fuel, and electricity. However, given its age, the Directive does not suitably reflect the EU’s current climate and energy policy frameworks or legally binding climate targets.

This Strategy has been developed to align Ireland with international ambition and commitments in the above areas.

European Policy on Energy

Three other energy related policies at EU level are also particularly relevant to this Strategy:

Accordingly, this Directive is currently being revised, with proposals aimed at ensuring that the most polluting fuels are taxed the highest and that minimum rates can be revised annually to reflect most up-to-date prices.

Energy Efficiency Directive

A new recast Energy Efficiency Directive (EU) 2023/1791 introduces a series of measures to help accelerate energy efficiency, including embracing the “energy efficiency first” principle in energy and non-energy policies. Changes from the previous directives 2018/2002 and 2012/27/EU include the establishment of a legally binding target to reduce the EU’s final energy consumption by 11.7% by 2030 (relative to the 2020 reference scenario). Transport is the most significant contributor to final energy consumption as defined by the EED and can contribute significantly to achieving this target.

In summary, this Strategy is aligned with and will support a wide range of UN and EU objectives and obligations across climate, transport, energy, and sustainable development sectors. Early and effective implementation of the Strategy will contribute to Ireland’s economy wide efforts to comply with EU targets and mitigate against noncompliance penalties and associated fines.