Growing crisis over illegal coal being smuggled into west of Ireland
Solid Fuel Merchants Ireland (SFMI) is sounding the alarm on a growing crisis that could see the Irish Exchequer lose up to €77 million by the end of 2025 due to illegal coal imports and widespread evasion of carbon taxes.
Despite a national ban, an estimated €100 million worth of coal products is brought into the Republic each year from Northern Ireland - much of it high-sulphur product banned under Irish environmental law.
The carbon tax increase on May 1 has further widened the cost gap between legal and illegal fuels, distorting the market, encouraging black market activity and squeezing compliant retailers out of business.
“This is a tax leak and enforcement failure on a national scale,” said Colin Ahern, chairperson of SFMI.
“Every bag of smuggled coal sold cheats the public purse, fuels pollution and undercuts responsible Irish businesses.
"Over 30% of households outside Dublin still rely on solid fuel for heating, yet legitimate merchants are being driven out while illegal operators thrive.
"If left unchecked, the cost to the taxpayer could hit €77 million by the end of this year.”
While producers of solid fuels must register with the Environmental Protection Agency (EPA), retailers are under no such obligation.
This loophole allows unscrupulous sellers to operate without oversight—avoiding VAT, dodging carbon taxes and flouting environmental standards.
SFMI is calling for:
Mandatory EPA registration for all solid fuel retailers, closing the enforcement gap
Robust enforcement operations at border points and in-market, led by Revenue, Local Authorities and An Garda Síochána
Clear labelling and traceability requirements so consumers can verify the legality and environmental safety of what they burn
A crackdown on mislabelled “low-smoke” or even "smokeless" products which frequently breach the 2% sulphur limit
The public health and environmental costs are equally serious.
Certified fuels produce significantly fewer fine particulates than illegal high-sulphur coal - pollutants directly linked to respiratory and cardiovascular illnesses.
Yet these high-emission products continue to be sold with impunity, undermining clean air targets and exposing vulnerable communities to unnecessary risk.
SFMI members are committed to cleaner alternatives and many are investing in low-carbon briquettes, biomass blends and kiln-dried logs.
But innovation cannot succeed in a market riddled with unregulated and untaxed imports.
“Unless the government clamps down now, compliant Irish businesses will be destroyed and climate goals set back by years,” added Ahern.
“We’re ready to be part of the solution - but we need enforcement, registration and a level playing field.”