Latest news with #GreenDeal
Irish Examiner
2 days ago
- Business
- Irish Examiner
Climate action progress could attract investment, experts say, amid looming hefty EU fines
The Government's delayed approach to complying with climate-related targets and agreements may threaten Ireland's position as an attractive place to do business, according to collaborators of a major report. Marie Donnelly, chair of the Climate Change Advisory Council (CCAC), along with budgetary watchdog Ifac's chief economist Eddie Casey cautioned, since the publication of their report in March, that a likely hefty EU fine for incompliance with agreements could impact foreign direct investment (FDI) opportunities. 'There's good reason to say, given what we are seeing internationally happening and all this uncertainty that is threatening Ireland's competitiveness, that we're going to lean into these areas that are helping (FDI) and attracting multinationals to stay here,' said Mr Casey. The report, 'A Colossal Missed Opportunity — Ireland's climate action and the potential costs of missing targets', found the Government could be on the hook for fines between €8bn and €26bn if it fails to meet its agreed EU climate commitments outlined in legislation. 'The danger is that this is quite close to reality because the additional measures that they have said they will enact, they haven't followed through on yet,' said Mr Casey. If the Government implements the additional measures in its own Climate Action Plan by 2030, it could reduce the fine range to €3bn to €12bn. 'With every crisis, you have opportunities too,' he said. Mr Casey stressed the significance of investing in the renewable sector and meeting climate agreements to maintain relationships with multinationals, especially as trade tensions continue to simmer amid US president Donald Trump's tariff threats and his ambition to lure large firms back to the US. Eddie Casey, chief economist, Ifac. 'Thankfully, it looks like the Government is taking more urgency following the tariffs debacle to really get a grip on how they can deliver and accelerate it,' said Mr Casey. Ifac has long warned against the Government's overdependence on corporation tax for financial padding in annual budgets, however three quarters of the corporation tax haul last year was from US companies and around 40% was collected from just three companies. 'We are incredibly reliant on them and we don't want to lose that,' said Mr Casey. Multinationals have become increasingly interested in locations with a renewable energy supply and a reinforced energy grid as they come under mounting pressure to fuel their electricity-guzzling data centres in a more sustainable way. 'They've been really worried for a long time about Ireland's ability to actually deliver energy so they can, as a tech firm, have a larger data centre,' said Mr Casey. Ms Donnelly echoed Mr Casey's comments and said the EU's Green Deal and its clean competitiveness agenda 'are effectively the same thing'. 'Europe understands that we have to have energy both for our society and our economy,' she continued. 'It's clear that the energy we currently use is neither sustainable, it doesn't have supply security, it can blow the cost of living out of the water, it's largely drawn by not very politically stable parts of the world and it's very bad for our climate because it's full of emissions,' she said. These legally binding EU agreements that Ireland has entered require domestic reductions in greenhouse gas emissions, an increasing share of renewable energy, and improved energy efficiency. A key piece of the legislation is the Effort Sharing Regulation, which Ireland and other EU countries agreed to adopt in 2018. It covers emissions from domestic transport, buildings, small industry, waste, and agriculture. If Ireland emits more than allowed, the state will have to purchase the gap from overperforming countries — those that reduce their emissions more than required. Other countries, including Spain and Portugal, have been overperforming in terms of their climate mandates because they have taken money from other countries that are underperforming. However, Ireland has around five times the cost of missing targets compared to a larger economy such as Germany which is underperforming. However, Mr Casey explained that Germany can afford to miss targets. Marie Donnelly, chair of the Climate Change Advisory Council (CCAC). Ireland has shown Europe it is capable of economic miracles, including its recovery from the banking crisis in 2008 to boasting healthy public finances after years of volatility, including covid lockdowns, soaring inflation and interest rate hikes. However, Ireland has not been as skillful in performing miracles when it comes to its emissions targets. In 2022, Ireland had the second-highest emissions of greenhouse gases per capita in the EU at 11.7 tonnes of carbon dioxide, figures from the Central Statistics Office showed. Ireland's emissions were 56% higher than the EU average of 7.5 tonnes. Meanwhile, the most recent projections from environmental agency EPA showed Ireland can achieve a 25% reduction of emissions by 2030, which is considerably short of the 42% reduction target. In addition, Ireland fell below its renewable energy share target baseline share in 2021, 2022 and 2023 and could face costs from purchasing compliance for falling below its baseline share in 2021 and 2022 but as things stand, not for 2023, according to the climate report. This is because countries have one year to return above their baseline share. Ireland is expected to return above its baseline share in 2024. Ireland's slow movement towards climate progress may be driven by a lack of serious consequences to date. 'There is a view amongst some that this is never going to happen, that they wouldn't be fined,' said Ms Donnelly. She repeated the point that if Ireland does get fined, the bill will without doubt be at least an eye-watering €8bn. Mr Casey also said that 'if they're not going to do it, they're basically breaking the law. The State would have the resources to do that without having to hike taxes or cut spending on any ongoing supports,' he said. Mr Casey added that if this were to happen, it 'would be a colossal wasted opportunity because that is money that could be put towards loads of potential measures that would meet the targets'. If Ireland does not comply with the EU's mandate, the money that Ireland will be fined will transfer to other countries in Europe.
Irish Examiner
2 days ago
- Business
- Irish Examiner
How renewables can help the earth live long and prosper
'What's the problem, Scottie?' 'It's the engines, Cap'n. They cannae take it anymore. She's gonna blow!' 'Then have to risk a full power restart. How long do you need?' 'At least fourteen hours, Cap'n. I cannae change the laws of physics!' 'You've got eight minutes.' In fairness to Captain Kirk, despite facing a seemingly unsurmountable crisis in almost every episode of the original Star Trek, he never actually lost the USS Starship Enterprise, and so continued to explore strange new worlds, to seek out new life and new civilizations, and to boldly go where no man has gone before. The Starship European Union could learn a lot from him, particularly in relation to delivering innovative solutions to complex problems in double quick time and on schedule. Admittedly, the EU missions tend to be far less glamourous than interplanetary exploration, but another important milestone date has just been pushed out and although it won't implode the whole spaceship, it is yet another small tear in the fabric of the EU sustainability strategy. The issue is with the prosaically titled 'Corporate Sustainability Due Diligence Directive' (CS3D), an instrument designed to improve and standardise the quality and content of reporting sustainability performance among companies doing business in Europe. Think of an accountancy balance sheet but instead of stating asset and money balances, it measures 'good behaviour by companies.' The CS3D directive is a key element of the overarching 'Green Deal' strategy with the long-term objective of adding transparency and accountability on an 'apples with apples' comparison basis to ensure that businesses of meaningful size provide clear and reliable information on their performance against environmental, social and governance (ESG) mandates. The other key obligation is that 'in-scope' companies adopt and put into effect a transition plan for climate change mitigation which aims to ensure, 'through best efforts, compatibility of the business model and strategy of the company with the transition to a sustainable economy and with the limiting of global warming to 1.5°C'. For businesses, it presents a trade-off between the cost and hassle of implementing additional regulatory overhead and the commercial opportunity that an increased focus on sustainability will drive additional goodwill to their brand in global marketplaces and better efficiency and innovation in their supply chains. Broadly speaking, the directive has two tangible demands on the companies impacted. Firstly, to drive focus across global 'value chains' for climate mitigation. Secondly, it formalises the principle that all businesses have a responsibility to respect human rights, which are 'universal, indivisible, interdependent and interrelated'. The intent, or — more accurately — hope, is that to meet these twin objectives, companies would begin to steer more capital investment towards sustainable processes and products and reduce impediments to better net-zero and human rights outcomes. Peter Burke, Minister for Enterprise, Tourism and Employment, has welcomed the deferral of the 'Corporate Sustainability Due Diligence Directive' (CS3D). Simply put, companies that are subject to the directive will be compelled to report and publish information on any material risks identified and what countermeasures taken to mitigate these risks and publish annually the impact, positive or negative that accrue from these changes. Even simpler put, lots more cost and time-pressure for companies for what is effectively an increased burden of 'non-finance' accounting. CS3D was issued early in 2023 and scheduled to be enacted into the national laws of the member states by July 2024. Given that the accounting standards that we know, and love today can be traced as far back as ancient Mesopotamia this has proved to be a very short timeline for such a fundamental re-engineering of corporate statements and opposition to the whole package is gathering, like belligerent Klingons, on the starboard bow of the directive. 'How long do you need, Scottie?" "Five thousand years, Cap'n." "You can have two.' Opposition to the proposal among businesses of all sizes has deepened and as result of intensive lobbying the European Parliament realising that resistance was futile, 'set their phasers to stun' and voted overwhelmingly to 'stop the clock', allowing all stakeholders time and space to catch their breaths and reset the implementation tempo and strategy. The original timeline for full implementation has been extended in by two years and the number of companies that will be subject to the directive has been reduced. The amendment to the directive reclassifies 'large' companies to those whose activities are more likely to impact human rights, and the environment will be impacted. The new threshold means that companies with more than 5,000 employees and net turnover exceeding US$1.6bn are now subject to the directive and are expected to begin reporting from 2028. These changes also mean that 80% of the companies originally targeted for inclusion in the programme are now off the hook. Additionally, the transposition of the directive into national law has also been extended by another year. Since the 2024 due date has passed, only Bulgaria, Czechia, Denmark, Ireland, France, Croatia, Italy, Lithuania, Hungary, Romania, Slovakia, and Sweden have met the target date for national legislation. Twelve down, still fifteen to go. While the recent amendments are not exactly a 'full power restart', they at least provide some much-needed wriggle room for Kirk to navigate the Enterprise away from those pesky Klingons. Other problems with the directive which may in the longer term be deeper than the noisy business issues were identified in an article published last December by Cambridge University Press, (The Unintended Consequences of the EU Corporate Sustainability Due Diligence Directive). In it, ESG lawyer Jowita Mieszkowska, argued that the CS3D directive could turn out to be a hat trick of own goals. Firstly, she points to the possibility that companies will withdraw from countries with problematic human rights because the risk of EU sanction leading to negative economic outcomes for regions that most need the investment. Second is the sheer regulatory overhead of implementation might divert capital from more productive and ethical uses. Thirdly, the directive might in fact weaken even stronger national legislation. For instance, Germany would actually have to dilute the impact of it's 'Supply Chain Act' to conform with the provisions of CS3D. Peter Burke, Minister for Enterprise, Tourism and Employment, welcomed the deferral, saying that he 'strongly supports the simplification and burden reduction agenda that is being led by President von der Leyen at European level, to maximise the competitiveness of businesses in the EU in the evolving global trading environment. These proposed changes will of course significantly help enterprise in Ireland, and most of all our SMEs.' The CS3D directive is a key element of the overarching 'Green Deal' strategy; businesses of meaningful size must provide clear and reliable information on their performance against environmental, social and governance (ESG) mandates. Mr Burke will now have to amend the Irish legislation to accommodate the changes enforced by a missed schedule and the elephant in the room has been pushed into a dark corner where it will be neither seen nor heard. The intent of CS3D was after all to help stop the planet growing warmer by reducing sustainability-related risks and promote climate neutral economic transitions in accordance with the 2015 Paris Agreement. These noble aims have been sidelined amid all the political and administrative turmoil and First Officer Spock might reasonably ask: How will this help planet earth to live long and prosper?
Yahoo
4 days ago
- Business
- Yahoo
EU Commission: EU closing in on 2030 climate target
European Union countries are on track to cut harmful greenhouse gas emissions by 54% by 2030, bringing them closer to the EU's target of 55%, the European Commission said on Wednesday. The assessment is based on national climate and energy plans in which member countries have to detail how they intend to reach the bloc's long-term target of becoming climate-neutral by 2050 and reducing emissions by more than half by 2030 compared to 1990 levels. The commission called on member states to stay on course and to fully implement their plans. "Emissions are down 37% since 1990, while the economy has grown nearly 70% - proving climate action and growth go hand in hand," said EU Climate Commissioner Wopke Hoekstra. "Now we must build on this momentum," he urged. "Investing in clean technologies and innovation is essential for industrial competitiveness and opens new markets for EU companies. Our commitment to the clean transition gives investors clarity and strengthens Europe's resilience and prosperity." "This is a decisive moment - every sector in every member state must contribute to delivery." The commission aims to support capitals with streamlined processes and better access to funding to help member states implement their plans. Despite the overall positive assessment, five EU countries need to do more for a fair burden sharing in sectors like transport, buildings and agriculture, the commission said. While the expansion of renewable energy is progressing well, energy efficiency including investing in the renovation of buildings can still be improved in several countries, according to the EU's executive arm. The EU's climate targets are part of the so-called Green Deal, an unprecedented package of measures and legislation intended to tackle global warming. While various laws have been adopted in Brussels in recent years, implementation in the individual countries remains a major challenge. Stricter rules for agriculture were partially withdrawn following major farmer protests in many EU countries. Requirements for car manufacturers to meet emission limits were recently relaxed. The commission is expected to present a proposal for a new legally binding interim target for 2040 in the coming weeks, after having previously recommended a reduction in greenhouse gas emissions of 90%.
Yahoo
4 days ago
- Business
- Yahoo
ICAEW calls for alignment with ISSB in ESRS
The Institute of Chartered Accountants in England and Wales (ICAEW) has called for the European Sustainability Reporting Standards (ESRS) to align with and build from the International Sustainability Standards Board's (ISSB) standards. With more than 6,500 ICAEW members situated in the European Economic Area and various UK companies potentially subject to these standards, the organisation emphasised the need for clarity and alignment in sustainability reporting. ICAEW expressed its support for the ambitions of the European Green Deal and the provisions outlined in the Corporate Sustainability Reporting Directive. However, the institute highlighted that the ESRS development in an accelerated manner led to flaws that could weaken the Green Deal objectives. The organisation expressed concerns regarding the principal purpose and objectives of ESRS, which are not easily understood. According to ICAEW, the prescribed information often lacks value for decision-making, and there are contradictions and ambiguities within the standards. Other concerns highlighted by the organisation include the overly detailed requirements which it says are not in line with public messaging on interoperability, and a lack of clarity over important aspects of the double materiality requirements. The European Financial Reporting Advisory Group's (EFRAG) standard-setting process has been unduly rushed, leaving insufficient time to properly consider stakeholder feedback. ICAEW's head of corporate reporting, audit and assurance Nigel Sleigh-Johnson said full alignment with ISSB standards would remove duplication of effort in standard-setting and allow the EFRAG time to focus on addressing the most challenging provisions. Incorporating the ISSB's work could simplify the development of standards applicable beyond the EU, according to Sleigh-Johnson. He also emphasised the importance of aiming for equivalence rather than mere interoperability to foster stakeholder trust in global sustainability reporting. Sleigh-Johnson said: 'We therefore support calls for the European Commission to prioritise the work needed to enable equivalence to be possible.' While acknowledging the pressure on the EFRAG to expedite the workplan, ICAEW insists on due process procedures that ensure quality and stakeholder engagement. These procedures should include a full public consultation and careful consideration of feedback, crucial for the success and credibility of the reporting standards. "ICAEW calls for alignment with ISSB in ESRS" was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
France unveils its first 'positive energy' neighbourhood, powering local pride
Fontaine d'Ouche, a social housing district in Dijon, is setting the pace for energy innovation in Europe. Thanks to solar panels, smart tech and deep renovations, the neighbourhood now produces more energy than it consumes. More than 10,000 square metres of solar panels have been installed across the area. Along with energy upgrades and new technologies, the project has turned this working-class part of central France into a model for sustainable living. Around 8,000 people live in Fontaine d'Ouche, with some 1,100 residents in the main renovation zone where social housing units are now fitted with solar panels. The energy produced is shared and partly owned by the community. "We produce 118 percent of our energy needs," says Massar N'Diaye, deputy mayor in charge of social economy and jobs, who grew up and still lives in the neighbourhood. "So we're producing more than we consume and the rest can be sold on." Low-tech living in Paris: A four-month journey to suburban self-sufficiency Officially inaugurated on Friday, Fontaine d'Ouche is France's first positive energy neighbourhood (PED). The pilot project is being co-led by Dijon and the Finnish city of Turku. It forms part of the European Union's Green Deal and long-term goal to reach carbon neutrality by 2050. Local residents are already feeling tangible benefits. The EU is aiming for 100 positive energy districts by 2025. Read more on RFI EnglishRead also:Climate-driven changes to ocean colour fuel urgency ahead of UN summit'Building trust' key to solving climate crisis, Cop30 president tells RFIMacron revives climate council as French emissions targets fall short
