Embedding Decarbonisation and Ireland’s Net Zero commitments into enterprise policy is a key priority, both to address the urgent challenge of climate change and to establish and maintain Ireland’s competitivity in the decarbonised enterprise sectors of the future. To that end, Government continues to provide and roll out financial supports for green investments, including the Green Transition Fund and the Growth and Sustainability Loan Scheme, which are increasing in take-up and are expected to grow further through 2024. Supports also continue to increase regarding the promotion of green skills training, which is showing high levels of enrolment and exceeding targets. Progress continued on the development of Powering Prosperity – Ireland’s Offshore Wind Industrial Strategy, which was published in early 2024. H2 2023 also saw the completion of a detailed skills assessment for Offshore Wind, the launch of a national decision to increase circularity in by-product and waste materials, and the launch of the bioeconomy action plan. The decarbonisation of Ireland’s commercial build environment also continued to progress during 2023, with the Commercial Built Environment Roadmap and the Industrial Heat Decarbonisation Roadmap close to completion and expected to be finalised in early 2024. Work also continues between the Department of Enterprise, Trade and Employment and the enterprise agencies to mainstream carbon abatement and carbon costs into operations and project management decisions, which will work to decarbonise client operations and facilitate new clients in low-carbon sectors of the economy. As developments continue to be made on decarbonisation policy at national and international levels, such as the forthcoming domestic transposition of the Corporate Sustainability Reporting Directive and the EU Net-Zero Industry Act, Ireland will work to ensure Irish based enterprise, in particular SMEs, are supported in the transition to low carbon business models and in their ability to realise the economic benefits of the green transition.
1.1 Develop a National Industrial Strategy for Offshore Wind
| Timeline | | Q4 2023: Completion of Phase 1- Scoping / Consultation1 | |
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| | | |
| | Q2 2024: Finalisation and publication of Strategy | |
| | | |
| | Q2 2024: Commence implementation | |
| Responsibility | | Department of Enterprise, Trade and Employment (Lead); Enterprise | |
| | Ireland; IDA Ireland | |
| Update | The development of Powering Prosperity – Ireland’s Offshore Wind Industrial Strategy has been led by the Offshore Wind Strategy Unit, which was established within the Department of Enterprise, Trade and Employment during 2023. To inform the development of this Strategy, the Department of Enterprise, Trade and Employment, in collaboration with Enterprise Ireland and IDA Ireland, completed a detailed programme of consultation during 2023. An Interdepartmental Group, including key stakeholders from across Government, convened further during H2 2023, guiding the development of the Strategy. The Offshore Wind Industry Forum was also further engaged, meeting twice during H2 2023. The Forum features balanced representation from offshore wind developers, companies in the offshore wind supply chain and industry representative groups, in which industry was kept up to date on developments to the Strategy. A series of targeted workshops took place during H2 2023, including in Rosslare, Dublin, Shannon, Cork & Killybegs. These forums targeted both SMEs and larger industry, as well as other regional stakeholders. The discussions at these workshops further informed developments to the Strategy. A public consultation was completed during Q4 2023, with over 45 submissions received that also informed the development of the Strategy. The Department of Enterprise, Trade and Employment engaged consultants at Everoze to undertake research on international best practice with regard to industrial strategies for offshore wind, which is now reflected in the Strategy. The Offshore Wind Strategy Unit also completed a number of fact-finding missions to sites in Grimsby, Blythe, and Aberdeen. | | |
| Powering Prosperity – Ireland’s Offshore Wind Industrial Strategy was published in Q1 2024 and is available at: Powering Prosperity – Ireland’s Offshore Wind Industrial Strategy - DETE (enterprise.gov.ie) | | |
| Implementation of the Strategy is on track to commence in Q2 2024, following the finalisation and publication of the Strategy in Q1 2024. | | |
1 Refer to page 4 for guidance on status colours for activities across this report
1.2 Embed Carbon Abatement into Enterprise Development Agency Operations
| Timeline | | Q2 2023: Carbon abatement reflected in Enterprise Development Agency | |
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| | OPDAs | |
| | | |
| | Q4 2023: Agreed design of Enterprise Development Agency carbon | |
| | budgets and timelines for different stages of implementation | |
| | | |
| | Q1 2024: Implementation of agreed Enterprise Development Agency | |
| | carbon budgets using available data | |
| Responsibility | | Department of Enterprise, Trade and Employment (Lead); IDA Ireland; | |
| | Enterprise Ireland | |
| Update | During 2023, the enterprise agencies committed through the Oversight and Performance Delivery Agreements (OPDAs) to align their strategic direction, grant funding, policies and supports with the policy direction articulated in the White Paper, in particular the priority to integrate decarbonisation and net zero commitments in enterprise policy. This will include the incorporation of carbon abatement as an objective, equal to and alongside employment and value-added. It also commits to the adoption of a carbon budget reflecting statutory emissions ceilings for industry. During H2 2023, IDA Ireland continued to engage with the Department of Enterprise, Trade and Employment on the finalisation of the integration of the cost of carbon into economic appraisal of projects. In 2024, IDA Ireland will introduce climate appraisal of capital-intensive project proposals from new and existing clients, to integrate the cost of carbon into project evaluations and to embed carbon abatement objectives into the operations of Ireland’s enterprise agencies. Enterprise Ireland are also further supporting Irish enterprise on sustainability and decarbonisation during 2023, in line with climate action targets. This includes aligning Enterprise Ireland grant funding, policies and supports with the policy direction articulated in the White Paper on Enterprise, launching and rolling out a new Environmental Aid Offer targeting the largest carbon emitters to support in the delivery of the 2023 - 2030 carbon targets, delivering Enterprise Ireland commitments under Climate Action Plan 2024 and promoting the awareness of sustainability across the agency’s client base. In H2 2023, Údarás na Gaeltachta and the Department of Tourism, Culture, Art, Gaeltacht, Sport and Media commenced preliminary discussions on setting targets to incorporate into its OPDA for 2024. | | |
| Significant progress has been made by the Department of Enterprise, Trade and Employment to build an evidence base and develop a framework around allocating carbon budgets to the enterprises agencies using data based on EU Emissions Trading System (ETS) emissions and non-ETS emissions, from the Annual Business Survey of Economic Impact 2021 and from the CSO. The enterprise agencies have identified and are working with their top emitters to plan emissions reductions in their processes, focusing on the most impactful interventions. In support of this work, the Department of Enterprise, Trade and Employment is working on finalising the Climate Appraisal Model to incorporate the environmental impact of projects. The Department is furthermore developing a Cost-Benefit Analysis framework to underpin cost- effective grant support for projects through Environmental Aid. |
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| Following agreement at the Trade, Enterprise and Climate Group in summer 2023, the Department of Enterprise, Trade and Employment has begun collecting data on the decarbonisation activities of Enterprise Ireland and IDA Ireland. The implementation of this new process will allow for ongoing monitoring of the climate transition activities of the enterprise agencies and furthermore allow sight of a pipeline of future projects that will contribute towards achieving the Department’s binding decarbonisation targets. |
1.3 Integrate the Cost of Carbon into Enterprise Agencies’ Project Evaluation Models
| Timeline | | Q4 2023: Cost of carbon included in agencies’ assessments of | |
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| | support for capital investment projects, through implementation of | |
| | the Climate Appraisal Model | |
| Responsibility | | Department of Enterprise, Trade and Employment (Lead); IDA | |
| | Ireland; Enterprise Ireland | |
| Update | Bilateral meetings were held during H2 2023 between the Department of Enterprise, Trade and Employment, Enterprise Ireland and IDA Ireland to discuss how the Climate Appraisal Model can be best structured. Following these meetings additional changes were made to the model to improve its usability for smaller companies, with the addition of projected emissions to ensure the information ask of companies was proportional to the scale of funding sought. The Department of Enterprise, Trade and Employment received draft values for the new shadow price of carbon in Q4 2023. These draft values were integrated into the Climate Appraisal Model and the pilot was re-run by the agencies. The implementation of the Climate Appraisal Model was delayed into H1 2024, as the new shadow price of carbon was recently agreed by the Department of Public Expenditure, NDP Delivery and Reform in late Q4 2023. A final Climate Appraisal Steering Group meeting was held in January 2024. The model was approved by all Steering Group members at the end of Q1 2024, with implementation of the Model having subsequently commenced. | | |
1.4 Design Decarbonisation Roadmaps for Industry and our Commercial Built Environment
| Timeline | | Q3 2023: Roadmap for Decarbonising Commercial Built | |
|---|
| | Environment | |
| | | |
| | Q4 2023: Roadmap for Decarbonising Industrial Heat | |
| Responsibility | | Department of Enterprise, Trade and Employment (Lead); | |
| | Department of Environment, Climate and Communications; IDA | |
| | Ireland; Enterprise Ireland; Údarás na Gaeltachta; Sustainable | |
| | Energy Authority of Ireland | |
| Update | The Commercial Built Environment Roadmap is a key document for businesses that will convey policy decisions, pathways to decarbonisation, and address issues relating to significant barriers to decarbonisation and the green transition, such as split incentives, skills gaps and follow through by businesses. The Commercial Built Environment Roadmap will be a living document and will develop actions to be included in future Climate Action Plans. The roadmap will be informed by other policy developments and documents including the National Heat Policy Statement, District Heating Policy, and the Phaseout of Fossil Fuel Roadmap. The Roadmap will be an important tool for signalling to businesses and generating buy-in from the enterprise sector. Further work was undertaken in H2 2023 to finalise the Roadmap, which will be presented to the Heat and Built Environment Task Force for consideration and approval during H1 2024, where it will be published thereafter. | | |
| The Industrial Heat Decarbonisation Roadmap will set out the key policy interventions, including supports, regulation and enabling measures to achieve the objectives for decarbonising heat use in manufacturing. A draft Roadmap has been produced and will be presented for discussion by the Heat and Built Environment Taskforce in advance of publication in Q2 2024. The Roadmap will be a living document and will develop actions to be included in future Climate Action Plans. Drafting and publication will be closely aligned, as far as possible, with other policy documents due to be published by other Departments in the coming months, regarding broader heat policy decisions. This includes the National Biomethane Strategy, the Roadmap for the Phaseout of Fossil Fuels and the Heat Policy Statement. | | |
1.5 Prioritise Financial Support for Green Investments
| Timeline | | Ongoing: Roll out of financial incentives for industrial decarbonisation including the Green Transition Fund | | |
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| | | | | |
| Responsibility | Responsibility | | | Department of Enterprise, Trade and Employment (Lead); | |
| | | | Enterprise Ireland; IDA Ireland; Údarás na Gaeltachta | |
| Update | | | Environmental Aid Enterprise Ireland and IDA Ireland are actively working with the top emitters in their client portfolios to develop impactful decarbonisation plans. These client companies have the potential to achieve the necessary reduction in Ireland’s industrial emissions and are primarily in the cement, alumina, food & beverage, pharmaceutical and chemicals sectors. Government, through Enterprise Ireland and IDA Ireland, has to date successfully supported the decarbonisation of industry primarily through the Environmental Aid Scheme. It targets industry emissions reduction from manufacturing combustion across Ireland’s manufacturing base and is viewed by the agencies as the most effective funding vehicle to achieving decarbonisation targets. Some of the additional funding provided to the Department of Enterprise, Trade and Employment following the recent National Development Plan Capital Ceilings 2025-26 review will allow for a programme to incentivise necessary investment to commence, although the scale of the funding commitment required to meet the targets will exceed that provided. Green Transition Fund The Green Transition Fund was launched during 2022 and is designed to address manufacturing combustion emissions from Ireland’s industrial sector by accelerating the uptake of carbon- neutral heating in manufacturing businesses. The Green Transition Fund has seen increased take-up year-on- year between 2022 and 2023. An additional allocated spend of €7.9 million across 206 projects occurred in 2023. During H2 2023 specifically, the number of projects was up 39% and total spend allocation was up 105%, when compared with H2 2022. This highlights the greater uptake under the fund for climate action planning, decarbonisation, and research projects. It is expected that the fund will see a continued acceleration of uptake during 2024. | | |
| Timeline | | Q2 2023: Launch of Growth and Sustainability Loan Scheme | | |
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| Responsibility | | | Strategic Banking Corporation of Ireland | |
| Update | Update | | The €500m Growth and Sustainability Loan Scheme provides longer-term lending to SMEs, including farmers, fishers and small mid-caps. It is jointly developed by the Department of Enterprise, Trade and Employment and the Department of Agriculture, Food and the Marine. The scheme is underpinned by resources from the European Investment Bank Group and delivered by the SBCI. The scheme targets a minimum of 30% of the lending volume towards environmental sustainability purposes with the aim of encouraging SMEs to take positive actions in support of the climate change agenda. Up to 70% of lending will be for strategic investments with a view to increasing productivity and competitiveness and thus underpinning future business sustainability and growth. Loans for climate action and environmental sustainability purposes will also benefit from an additional interest rate discount. The scheme was launched in Q3 2023, through the first participating finance provider, Bank of Ireland. AIB launched the scheme in Q4 2023, shortly followed by Finance Ireland as the first non-bank lender. A number of other lenders, including non-bank lenders, are expected to take part in the scheme during 2024. | | |
1.6 Develop Green Skills and Capacities Required for a Net Zero Economy
| Timeline | | Ongoing: Promote green skills within the Higher Education system to support a more sustainable enterprise sector | | |
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| | | | | |
| Responsibility | Responsibility | | | Department of Further and Higher Education, Research, Innovation | |
| | | | and Science | |
| Update | | | Springboard + and Human Capital Initiative (HCI) Pillar 1 were launched during 2023, and will play a vital role in the green transition by providing funding to Higher Education system in the areas of green skills. Under green skills and green skills-related areas, Springboard+ 2023 will provide 610 places on 20 courses and HCI Pillar 1 will provide 536 places on 22 courses for the academic year 2023/24, a combined total of 1,146 places on 42 courses to be delivered by public and private higher education providers around the country. HCI Pillar 3 was funded in 2020 over a five-year period to 2024, under which there are 12 projects related to Green Skills. These projects include but are not limited to REEdI- Rethinking Engineering Education in Ireland, Sustainable Futures, Digital Academy for Sustainable Built Environment (DASBE), Ireland’s Knowledge Centre for Carbon and Climate and Resilient Design Curricula for 21st Century. To date, projects are exceeding targets, and more places and courses are expected to be delivered and reported on within the lifetime of the project. | | |
| Timeline | | | 2023 -2024: Develop full suite of green skills programmes | |
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| Responsibility | | | SOLAS | |
| Update | Update | | SOLAS continues to make progress on the Green Skills for Further Education and Training (FET) Roadmap 2021-2030 which has the objectives of Green Skills for Life which creates awareness of climate justice, sustainability and bioeconomic issues, Green Skills for Construction which focuses on training and upskilling on green technology and Green Skills for Careers which seeks to promote employment opportunities in emerging sectors related to the green economy. SOLAS continues to work on expanding green provision in the 16 Education and Training Boards (ETBs), with over 75 programmes delivered. These programmes range from specific skills training, upskilling and reskilling, Post Leaving Certificate (PLC) courses, Back To Education Initiative (BTEI) Groups, Adult and Community Education Groups, Traineeship and Apprenticeship in areas such as Environmental Sustainability Awareness, Climate Justice, Green Construction, Biodiversity and Ecology and Renewable Energy. Education and training relevant to the skills needed in the retrofitting and construction sector are delivered through more than fifty programmes running in the six operational Nearly Zero Emission Building (NZEB) Centres of Excellence. These are operated by Waterford and Wexford Education and Training Board (WWETB), Laois and Offaly Education and Training Board (LOETB), Limerick Clare Education and Training Board (LCETB), Cork Education and Training Board (Cork ETB), Mayo-Sligo-Leitrim ETB (MSLETB), as well as City of Dublin ETB which began delivering training in H2 of 2023. Courses are further offered through Tipperary ETB. The Department of Further and Higher Education, Research, Innovation and Science continues to engage with the SEAI in exploring additional emerging skills needs for low carbon construction. Enrolments in retrofit skills training, including NZEB skills, from January to end December 2023 were 4,4422. The cumulative total for 2020-2023 inclusive was 7,667 enrolments in NZEB training. | | |
2These are provisional numbers, where final figures will be made available during Q2 of 2024.
| Timeline | | Q2 2023: Detailed Skills Assessment Report by Skills and Workforce Workstream | | |
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| Responsibility | Responsibility | | | Department of Further and Higher Education, Research, Innovation | |
| | | | and Science (Co-Lead); Department of Environment, Climate and | |
| | | | Communications (Co-Lead) | |
| Update | | | A detailed skills assessment report for the development of offshore wind was commissioned in 2023 by Greentech Skillnet, in collaboration with the Department of Further and Higher Education, Research, Innovation and Science and the Department of the Environment, Climate and Communications. The skills assessment report supports the activities of Workstream 8: Skills and Workforce, of the Offshore Wind Energy Programme. The skills assessment report was completed in H2 2023 and was officially launched at the Wind Energy Ireland Annual Conference in January 2024. This report will inform the ongoing planning process to address the skills requirements of offshore wind, forming part of a broader package to produce a development pathway tool in 2024 for offshore wind in Ireland. | | |
1.7 Promote the Development of the Circular Economy and Bioeconomy
| Timeline | | | | Q2 2023: Launch of Food Waste Charter 2.0, with implementation | |
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| | | | and reporting covering the period through to the end-2024 | |
| | | | | |
| | | | Q3 2023: Launch national decisions on construction by-product and | |
| | | | waste material to promote circularity | |
| | | | | |
| | | | Q4 2023: Review of Green Enterprise Fund Completed | |
| Responsibility | | | Environmental Protection Agency (EPA) | |
| Update | Update | | The new Food Waste Charter (Food Waste Charter 2.0) was launched during 2023, calling on all businesses and State Agencies operating across the food supply chain to sign up. As of end 2023, there were 23 members of the Food Waste Charter. Meetings took place with Teagasc and Enterprise Ireland during H2 2023, to identify levers within their programmes and actions to drive membership to obtain a critical mass for success. In addition, the Charter was highlighted at the Environmental Protection Agency (EPA) Forum on Food Waste in November 2023, as the national voluntary agreement to support a collaborative approach to meet Ireland’s challenging food waste reduction target (50% by 2030). By signing the Charter, members commit to both measuring and reducing their food waste using the Environmental Protection Agency (EPA) measurement methodologies. Reporting templates for members to monitor progress will be developed and disseminated during Q1 2024. | | |
| | | During H2 2023, the EPA published national end-of-waste criteria for recycled aggregates and national by-product criteria for site-won asphalt/ road plannings. These were the first national end-of-waste and by-product decisions to be published by the Environmental Protection Agency, and provide a clear framework for operators to follow in ensuring consistent and quality resources are produced. A national decision for greenfield soil and stone is expected to be notified to the European Commission for a 3-month standstill period in Q1 2024, with the criteria anticipated to be finalised and made available in Q2 2024. | | |
| | | An analysis of funding sources for circular economy innovations in Ireland was progressed in H2 2023 by the Environmental Protection Agency and is due to be completed in Q1 2024. The analysis will inform the wider review of the Green Enterprise Fund taking place in collaboration with the Department of the Environment, Climate and Communications, which is expected to be completed in H1 2024. | | |
| Timeline | | Q2 2023: Publish Bioeconomy Action Plan | |
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| | | |
| | Q2 2023 – Q4 2025: Implementation of Action Plan, including the | |
| | Industry and Enterprise Pillar | |
| Responsibility | | Department of the Environment, Climate and Communications; | |
| | Department of Agriculture, Food and the Marine; Department of | |
| | Enterprise, Trade and Employment | |
| Update | The Bioeconomy Action Plan was published in Q4 2023. The plan’s development was led by the Department of the Environment, Climate and Communications and the Department of Agriculture, Food and the Marine, with the Department of Enterprise, Trade and Employment and the enterprise agencies also contributing to the development of the plan. The plan contains actions for the Department of Enterprise, Trade and Employment to support the development of the bioeconomy, encourage and support bio-based industries to undertake lifecycle analyses, develop a coordinated approach to bioeconomy investment for faster bioeconomy industrial development and leverage existing innovation supports to generate valuable IPs. | | |
| The Department of Enterprise, Trade and Employment is working with its enterprise agencies to implement relevant actions under the Bioeconomy Action Plan. The first update on the implementation of the Plan will take place in Q2 of 2024. The Department of Enterprise, Trade and Employment will be offering a full update to the Bioeconomy Implementation and Development Group on the actions for which it is responsible. | | |