Failure to meet our carbon reduction targets will cause permanent damage to Ireland's economy, delaying a timely transition to a fossil-free economic model, with the associated loss of competitiveness and attractiveness as a location for foreign direct investment, as well as increased future climate mitigation and adaptation costs.
We will miss out on the economic growth and job creation opportunities of the new green economy, which we are well placed to harness such as through development of our vast renewable energy resources, including offshore wind, that will provide a firm economic foundation of abundant, clean and secure energy. The energy transition will also benefit rural communities through reduced energy costs, dispersed electricity generation, and the creation of local enterprise and employment growth opportunities in areas such as building retrofits and nature-based solutions as evidenced in the Midlands.
I am also very aware that enterprises face varying challenges in decarbonising and transitioning to climate-neutrality, including upfront investment costs. In response the Government has sought, through successive annual Climate Action Plans which are grounded in rigorous analysis, to bring forward the optimal mix of policies, measures, regulations and actions to support these enterprises and their employees, such as:
• Enterprise Ireland and IDA Ireland’s support for their clients to decarbonise their operations while continuing to facilitate economic growth;
• the Green Transition Fund, which is part of Ireland’s National Recovery and Resilience Plan and has two streams, the Enterprise Emissions Reduction Investment Fund (€30 million) and the Climate Planning Fund for Business (€25 million), to support the climate transition;
• the Enterprise Emissions Reduction Investment Fund which targets manufacturing companies using fossil fuels and incentivises them to adopt carbon abatement technologies in their processes;
• the Climate Planning Fund for Business which is targeted at companies of different sizes and at different stages of engagement, to support them in accelerating their awareness of carbon abatement opportunities, building decarbonisation capabilities, and putting in place sustainability plans;
• the SEAI's range of initiatives and supports to improve business energy efficiency, including the Government-funded EXEED and Support Scheme for Renewable Heat; and
• the Climate Toolkit 4 Business [www.climatetoolkit4business.gov.ie] is a free online tool, jointly developed by this Department and the Department of Enterprise, Trade and Employment, which helps Irish businesses to decarbonise by providing them with tailored plans that link to the most relevant supports and advisory services from state agencies.
The Government is also committed to ensuring that no one is left behind, and the principles of just transition are an integral element of successive Climate Action Plans and wider Government policy. The €169 million EU Just Transition fund will support workers and communities impacted by the shift away from fossil fuels, including retraining and reskilling programs. It builds on the success of the National Just Transition Fund which focused on supporting the transition away from peat harvesting in the Midlands by Bord na Móna.
