Regaining ground on sustainability targets requires joined-up thinking

Ireland is projected to fall well short of its ambitious climate targets, the Environmental Protection Agency (EPA) has said. The agency published its most recent Greenhouse Gas (GHG) emissions projections for the period 2022-2040 in June. The analysis shows that planned climate policies and measures, if fully implemented, could deliver up to 29 per cent emissions reduction by 2030 compared to 2018, far short of the 51 per cent envisaged in the Climate Act.

In addition, the first two carbon budgets for the period from 2021 to 2030, which aim to support the achievement of the 51 per cent target, are projected to be exceeded by a significant margin, of between 24 and 34 per cent.

“The EPA report reflects the reality of the climate change agenda that presents across all sectors,” says Derarca Dennis, partner and lead for sustainability services with EY Ireland.

“At present we are on course to achieve a reduction of approximately 30 per cent by 2030 compared to a target of 51 per cent. The currently anticipated 30 per cent reflects the fact that companies have availed of all the low hanging fruit with regard to emission reduction, where businesses have moved to make changes such as adopting solar energy and swapping old plant and machinery for more energy efficient models.”

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Dennis believes the targets can be reached – but there is a steep hill to climb.

“The challenge that we now have is to go to the next level of actions and agree on concrete measures to reduce our carbon footprint as a nation,” she says. “The next phase of actions requires collaboration and joined-up thinking across public and private sector. Through working together, I believe we can deliver innovation that will support the decarbonisation agenda.”

Capacity constraints represent a particular challenge, in her view. “Across Europe we are all focusing on the same goals, which means that we are at times constrained by each other. This is particularly relevant in the renewable energy sector where we anticipate supply chain challenges as this sector continues to grow,” says Dennis.

“The challenge in the transport and energy sector is that the pace at which we can deliver critical projects is limited by both available skill sets and resources.”

Dennis notes that on a national level, we in Ireland have seen a shift to higher public transport use and use of electric vehicles (EVs) “but we are constrained by the lack of infrastructure outside of densely populated areas, which is proving to be an inhibitor for many – range anxiety is a real feature in the lives of Irish EV owners”.

Energy is another problem area, Dennis says. “The pressure on the energy sector is immense as we all seek to shift to renewable energy and whilst much has been done, there is a gap that needs to be filled if we are to meet our targets,” she adds.

“One area that we are doing really well in is residential buildings, as people do want to make the necessary changes at a personal level and with the support of local grants this is happening all around the country.”

While noting that the construction sector is making great strides in delivering more energy efficient buildings and homes, Dennis makes the point that retrofitting abandoned buildings in certain parts of Ireland can avoid the embodied carbon in new builds.

Accelerating the pace of emissions reduction may require some policy changes, says Russell Smyth, who leads KMPG’s Sustainable Futures Team.

“While taxes and regulations can be effective in curbing emissions, there is a growing recognition that a more balanced and positive approach is needed,” he explains. “Ireland must be credited in this regard as the Government has now ensured that the increases in the carbon tax are progressive through targeted social welfare and other initiatives to prevent fuel poverty and ensure a just transition, and fund a socially progressive national retrofitting programme targeting all homes but with a particular emphasis on social and low-income tenancies.”

However, Ireland continued to subsidise fossil fuels to the tune of €2.9 billion in 2021, up from €2.5 billion in 2020, according to the CSO.

“A different approach is long overdue in this regard,” says Smyth. “Subsidies in this sector should be reallocated to low-emitting, poorer sections of society or towards sustainable infrastructure projects.

“Ireland has a unique opportunity to develop more renewable energy than we need and should plan for a future where we develop new industry to consume this energy and a strategy to ensure the citizens benefit from the development of this infrastructure.”