Climate and energy efficiency: ESG priorities for Ireland and the EU in 2026

The EU and Ireland’s legally binding GHG reduction targets remain unchanged. Ireland’s 2026 Climate Action Plan (currently under development) and Carbon budgets will continue to target reductions across agriculture, land, energy, transport, built environment and industry. Investment in grid upgrades, renewables (offshore), and the rollout of the bio economy policy are key focus areas. 

The Energy Efficiency Directive and Energy Performance in Buildings Directive continue to drive decarbonisation across the built environment sector and data centres. Data Centre growth and energy demand (now 5% of Ireland’s energy use) are a continuing pressure amidst constraints in Ireland’s grid infrastructure and renewable energy. 

The Commission for Regulation of Utilities (CRU) Large Energy Users Connection Policy (launched in Dec 25) adds a new requirement for new Data Centres to meet at least 80% of their annual energy demand with additional renewable electricity projects generating in the Republic of Ireland. This, along with the existing requirements for Data Centre Reporting on energy use, renewables uptake, and Carbon Footprint, will be live issues for this sector in 2026. 

An EU-wide climate resilience framework will integrate climate action into risk and support EU climate adaptation. This framework is currently under public consultation, with the feedback period open until 23^rd February 2026. 

For corporates, the requirement to set science-based reduction targets (Scope 1-3) and to develop tangible Climate Transition Plans to deliver them remains the expectation from regulators, investors and lenders. Due in 2026, the expansion of GHG standards under the GHG Protocol framework and alignment with the ISO14064 suite aim to provide a clear playbook for corporate decarbonisation. 

This covers upgrades to methods for Scope 1-3 measurement, plus recognition of so-called “Avoided Emissions” (scope 4). Commitment to SBTi continues with over 9,500 companies holding validated science-based targets. Over 140 are based in Ireland, including BDO Ireland. Validated Net Zero Targets to the SBTi Corporate NZ standard are growing with 2,325 companies now validated. The Corporate Net-Zero Standard Version 2 and Financial Institutions Net-Zero Standard, both launched in 2025, are expected to grow further validations in 2026.