What's Another Year 2026 - Construction And Engineering

Standard form contracts

RIAI contracts

Use of the new suite of RIAI contracts, which replaces the 2017 editions, will bed down across the construction industry. New structuring and updating of provisions in line with current market practices is a positive step forward.

Public works contracts

Amendments to the alternative dispute resolution mechanisms and promotion of greater use of dispute avoidance will be a strong possibility. It remains to be seen what impact, if any, the recent narrowing of the threshold of inflationary risk to be retained/priced by the tenderer will have on tender strategies.

FIDIC

We understand that FIDIC is considering changes to the Red, Yellow and Silver Books, and that Heads of Terms will be set out in 2026 with a Task Group to follow. In the meantime, publication of several resources is anticipated in 2026, including a collaborative contract and several Silver Book 1999 sub-contracts. FIDIC's new Carbon Management Guide will be of interest to entities implementing carbon management practices in their projects. FIDIC also previously indicated it was developing a new contract for offshore wind farm projects. It advises that it does not yet have a confirmed delivery date, but that the website will be updated once a revised timeframe is confirmed.

Tariffs

Potential will remain for EU retaliatory tariffs to trigger increases in materials and equipment costs.

We look at tariffs in the context of construction contracts in our briefing: Tariffs: considerations in construction contracts.

Accelerating infrastructure

Government plan

The Government's Accelerating Infrastructure Report and Action Plan outlines 30 substantial actions to be taken throughout 2026 to unlock delivery of infrastructure. The plan combines practical steps aimed at shortening consenting periods and accelerating project timelines with cultural changes to ensure that Ireland's approach to infrastructure development is proportionate and focused.

Renewable energy consenting

Since the European Commission sent Ireland a reasoned opinion for failing to fully transpose provisions of the Renewable Energy Directive related to simplification and acceleration of permit-granting procedures, we have seen transposition of the requirements in the current planning permission framework. These will need to be transposed as soon as possible in the new planning framework and in relation to other aspects of the permit-granting procedure.

As an example of considerations in renewable energy consenting, see our briefing: Biomethane: guide to project development in Ireland.

Sustainability in buildings

Energy performance

Full transposition of the recast Energy Performance of Buildings Directive is required by 29 May 2026 and is expected to be done in an Act as well as Regulations, with the Minister for Housing, Local Government and Heritage indicating that work is ongoing in the Department. This will need to be done in line with the European Commission's secondary legislation and guidance papers. All new buildings must be zero-emissions by 2030 (or 2028 if owned by public bodies).

Our briefing on the Directive (at the time it was formally adopted) is available here: How to get a net-zero building stock: Q&As on the Recast Energy Performance of Buildings Directive.

Energy efficiency

Transposition of the Energy Efficiency Directive will likely progress in 2026, cognisant of the European Commission's recommendations and guidance notes. The Directive was required to be transposed in Irish law by 11 October 2025 and the European Commission has opened an infringement procedure by sending a letter of formal notice to Ireland for its failure to transpose the Directive.

The Directive embeds the energy efficiency first principle in large planning, policy and investment decisions and increases targets for energy efficiency and energy savings. It mandates that public body buildings play a leading role. Ireland was required, by 11 October 2025, to make publicly available an inventory of heated and/or cooled buildings with a total useful floor area of more than 250m2 owned or occupied by public bodies. This is to be updated at least every two years and linked to the building stock overview in national building renovation plans under the Energy Performance of Buildings Directive.

Renewable energy in buildings

Mainstreaming renewable energy in buildings

Intended to complement the Energy Performance of Buildings Directive, obligations to drive production and use of renewable energy in buildings under amendments to the Renewable Energy Directive were required to be transposed in Irish law by 21 May 2025.

Ireland will need to set an indicative national share of renewable energy produced on-site or nearby, as well as taken from the grid, in final energy consumption in the building sector. The share is set to meet a certain level in 2030 (determined under the Directive). Ireland is required to introduce measures in regulations, building codes and, where applicable, support schemes, to increase the share of renewable electricity and heating and cooling in the building stock. Minimum shares must be set for new buildings and major renovations. Waste heat and cold may count towards targets, which may be of interest to sectors such as industry and digital infrastructure.

Renewable heat

A renewable heat obligation is to be introduced for 2026-2045 based on Heads for a Renewable Heat Obligation Bill. It would oblige suppliers of fossil fuels used for heat to demonstrate that a proportion of the energy they supply is from a renewable source. It may seek to encourage domestic production by applying a multiplier of 0.5 certificates for domestically produced units of biomethane. We look at schemes intended to stimulate the sector in our briefing: Biomethane: Guide to project development in Ireland.

Further information is available here: Renewable Heat Obligation.

District heating

Developing a framework for district heating in Ireland continues as legislation is drafted based on the General Scheme for a Heat (Networks and Miscellaneous Provisions) Bill; the EIB announces technical and financial advisory support to develop district heating systems in Ireland; and the Government opens expressions of interest to support pre-construction development. Regulations are now also in place for Guarantees of Origin in district heating and cooling.

Housing

EU action

Publication of the European Affordable Housing Plan and European Strategy for Housing Construction has potential to assist efforts in Ireland to address the housing crisis. Simplification initiatives include legislative amendments to speed up environmental assessments and accelerate and streamline permitting processes for strategic sectors including affordable and social housing. There are plans to promote off‑site/modular construction, digitise processes, and modernise construction. The European Commission wishes to mobilise more public and private investment to address the housing gap, for example through a Pan-European Investment Platform in cooperation with the EIB. It will also propose amendments to State aid rules to support better access to affordable housing. Further information, including an Ireland fact sheet, is available here: The European Affordable Housing Plan.

Ireland

Meetings of new groups established to accelerate housing delivery are scheduled for 2026. This includes high-level political leadership and a forum for industry engagement.

Materials, products and consumers

Timber and cement

The Climate Action Plan 2025 committed to reduce embodied carbon in construction materials by at least 10% in 2025 and 30% by 2030. The Sustainable Energy Authority of Ireland is developing a national database comprising building (and other construction) materials and embodied carbon calculation methodology, intended to support an embodied carbon rating system for buildings. Work of the following groups continues:

• the Timber in Construction Steering Group,
• the Inter-departmental Cement Construction Sector Decarbonisation Working Group, and
• the Modern Methods of Construction Leadership and Integration Group.

Construction products and ecodesign

The revised Construction Products Regulation applies from 8 January 2026. Construction products also remain under the scope of the revised Ecodesign Regulation, which obliges the European Commission to set requirements for cement later this decade, if that is needed to bridge potential lacunae in the Construction Products Regulation.

Empowering Consumers for the Green Transition

The Directive on empowering consumers for the green transition is to be transposed in Irish law by 27 March 2026. It amends the Unfair Commercial Practices Directive and the Consumer Rights Directive to target misleading environmental claims about products.

Deforestation Regulation

The EU Deforestation Regulation aims to tackle deforestation and forest degradation by regulating the placement and export of certain products (which include wood) within the EU market. In Ireland, an EU Deforestation Regulation Bill is listed for priority drafting. The EU will be simplifying and postponing certain obligations in the Regulation.

Further detail is available in our insights posts: Proposed amendments to EUDR for downstream supply chains and EUDR - One year postponement agreed

Carbon

Pricing carbon in fuel for building

The EU Emissions Trading System 2 (ETS2) is designed to impose a cost of carbon on suppliers of fossil fuels used for buildings and road transport. The EPA is the national competent authority in Ireland. Monitoring and reporting requirements currently apply, but the EU co-legislators agreed to postpone full operation by a year to 2028.

Pricing carbon in imported materials

Obligations for importers of certain goods (including cement, iron and steel, and aluminium) into the EU under the Carbon Border Adjustment Mechanism (CBAM) ramp up as the CBAM became fully operational on 1 January 2026, albeit with certain aspects simplified, as we outlined in our briefing: Carbon Border Adjustment Mechanism: Simplification and Next Steps. Further information is available here: Carbon Border Adjustment Mechanism. Detailed requirements are in a number of new Implementing Acts: CBAM Legislation and Guidance.

During 2026, the European Commission will progress plans to expand the scope of the CBAM to certain downstream products and introduce targeted anti-circumvention measures. Further information is available here: Commission strengthens the Carbon Border Adjustment Mechanism.

Planned linkage of the EU and UK Emissions Trading Systems should lead to goods originating in both jurisdictions benefiting from mutual exemptions from their respective CBAMs.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.