What Is the Concrete Levy?

In September 2022, the Minister for Finance announced the “Concrete Levy” as part of Budget 2023; signed into law of the Finance Act 2022 in December 2022.

The introduction of the Concrete Levy stemmed from the need for a redress scheme for homeowners affected by Mica and Pyrite, caused by defective concrete products and blocks used in the building of their homes.

The Remediation of Dwellings Damaged by the use of Defective Concrete Blocks Act 2022 puts in place a statutory framework for the provision of grants to homeowners across Ireland living in homes built using defective concrete blocks.

Revenues raised from the Concrete Levy intend to finance financial aid under the Mica redress scheme.

The Impact of the Concrete Levy on the Irish Construction Sector

Timber frame now represents approx. 50% of all newly built homes in Ireland; a massive increase year-on-year.

This drastic increase in popularity in favour of timber frame stems from ongoing demand for speed and energy efficiency.

Part L & nZEB requirements can easily be met with a closed panel timber frame.

It’s no coincidence that most (if not all) passive homes are timber frame construction.

The levy is expected to raise €80 million per year.

Minister Eamon Ryan has said the new levy on concrete should see the construction of more timber frame houses in Ireland; “Much more timber framing, exactly, that’s where we do need to go.

When Will the Concrete Levy Start?

The Government’s Climate Action Plan 2021 notes that concrete is “extremely carbon-intensive” and calls for a change in the construction sector to decarbonise the Irish economy with a focus on timber frame homes.

The Concrete Levy is being seen as a tool to effect the move to a low-carbon construction sector in Ireland.

The Concrete Levy was to be enacted from the 3rd April 2023 as stated in the Minister for Finance’s budget speech as being applicable from 3 April 2023, however this was deferred. The act now intends that the the levy will be imposed on the first supply of a concrete product on or after 1 September 2023.

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