An SUV tax won’t save us — Ireland needs bold climate action in Budget 2026

Budget 2026 must move beyond token measures like SUV taxes and prioritise a just transition that protects all Irish people

Sat, 23 Aug, 2025 - 00:51

Tom Spencer

The climate emergency isn’t some distant existential threat; it is already here. Key crops in Ireland are already failing, extreme weather events like Storm Eowyn are becoming both more frequent and intense, and ordinary people are already feeling the economic impacts of climate change.

With Budget 2026 looming into view, we’ll get the latest opportunity to see whether the Government will finally treat climate action as a priority, and whether it will lead a just transition.

For those unfamiliar, a just climate transition puts equality at the heart of climate action. It acknowledges the disparities in society today and seeks to rectify them by creating not only a more sustainable world, but a fairer one where everyone is equally protected from the ravages of climate change and given a chance to thrive.

However, early indications are that this Government will continue to ignore climate science and prioritise big business over the Irish people.

A tax on SUVs has been proposed, something that should be welcome news, as they not only represent a serious threat to road safety, but are responsible for a vast increase in fossil fuel consumption and emissions. Following the French model, owners of SUVs would be taxed for the out-sized negative environmental and societal impact that such vehicles have, with the long-term aim of removing them from Irish roads.

However vital such a tax might be, if it is implemented it will be the latest in a long line of Government policies that take the path of least resistance, have the lowest possible impact on lowering emissions, while placing the cost in the hands of Irish citizens rather than those most responsible for climate damage.

SUVs rose to prominence in the 1980s as car manufacturers in the US exploited a loophole where trucks were subject to lower tax costs than traditionally sized cars. This allowed car makers to produce cars at a lower cost and sell a higher volume at a lower price to consumers.

However, over recent decades those same car manufacturers have systematically cut the number of non-SUV models available while almost eradicating small car options from their line-ups. These are the same companies that have lobbied against EVs, been slow to make affordable EVs available and done all they can to maintain their profit margins alongside sky-high emissions.

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The bold and fair approach would be for the Irish government to tax those manufacturers who have pushed SUVs on us all, alongside banning SUVs. They are the dealers pedalling these wares. They are the ones who have profited from raising the number of annual road deaths and increasing emissions to the point where, were SUVs their own nation, they would be the world’s fifth largest emitter of CO2.

The answer is clear. As essential as the SUV tax has become (mainly from decades of inaction from successive Irish governments), we should be penalising those most responsible for profiting from those emissions in the first place. Why is the Government so afraid of simply banning those things that are most harmful to us?

It was the same in 2024 when the Irish Government introduced the plastic bottle Re-Turn scheme. On the surface it sounds like a great idea; you and I pay a deposit and as a nation we increase plastic recycling.

But the reality is that, as fossil fuel use in the transport sector has waned, Big Oil firms have prioritised plastic production to maintain their profits, according to the International Energy Agency.

Ireland had an opportunity to cut its single-use plastic waste by 100% by banning the sale of such items, but instead the onus for change and the blame for the problem was placed on ordinary people, rather than the likes of soft-drink manufacturers and oil companies.

On the surface the plastic bottle Re-Turn scheme sounds like a great idea, but the reality is that Big Oil firms have prioritised plastic production to maintain their profits. File picture

If the Irish Government is serious about a just transition, and there have been few indicators over the last few decades to show that it is, it must start giving Irish people options and support to live more sustainably.

In recent years there have been major cuts to EV grants and sales fell as a result. Energy poverty is still shockingly high, with 29% of Irish households struggling to pay their bills while energy providers report record profits. This can’t go on.

Yes, the SUV tax is vital if we are to meet our emissions reductions targets, and no one needs an SUV. But with billions of euros in fines coming our way if we don’t meet our Paris Agreement commitments, Budget 2026 should prioritise spending on a just transition above all.

Every cent we spend now on climate action will pay hundreds or thousands of euros in dividends in the decades to come.

The climate emergency, as terrifying as it is, presents an opportunity to take stock and establish a fairer society for all. Affordable renewable energy, better access to public transport, safe active travel, electric vehicles, affordable local food and plant-based diets must be accessible to all. Not to mention equal pay, better access to healthcare, and fair rents.

Passing all the costs on to ordinary people and letting the biggest polluters get away scot-free is not only unfair, but is also giving rise to more and more misinformation about the climate emergency from the far right in Ireland. We cannot allow any more delays or distractions, and we cannot allow the Irish people to be made more vulnerable to this already pressing threat.

The Irish Government must finally get serious about climate change, and that starts with aligning Budget 2026 with climate science rather than the interests of Big Business, and this can only be achieved through a just transition.