In this week's Public Policy news, read about a positive economic forecast for Ireland for 2021, preliminary analysis showing a drop in Ireland’s power-generation and industrial emissions, and new guidance published on human rights for business enterprises. In other news, the UK’s BEIS Department’s has announced that next month’s ‘Your business journey to Net Zero’ will focus on Northern Ireland SMEs, and the EU is to borrow €806 billion to finance its green and digital plan.
Positive economic forecast for 2021
Minister for Finance, Paschal Donohoe TD, this week published the Government’s Stability Programme Update for 2021. This update sets out the Department of Finance’s macroeconomic and fiscal forecasts for the period 2021–2025. The update, which must be submitted by all Member States to the European Council and Commission by the end of April each year, forecasts the following for 2021:
- a 4.5 percent expansion of GDP
- a 2.5 percent growth in Modified Domestic Demand (MDD), described as ‘a more useful indicator of domestic economic conditions’
- a 16.25 percent averaging of the unemployment rate
- an 80,000 increase in the employment level
- a General Government Deficit of 4.7 per cent of GDP
The projected economic recovery over the second half of 2021 will depend on the success of the vaccination programme and the assumption of an easing of public health restrictions. Employment is projected to remain below its pre-crisis peak until 2023.
Commenting, Minister Donohue said: ‘The impact of the pandemic on the domestic economy and the public finances has been severe. However, the acceleration of the vaccination programme means that the beginning of the end is, hopefully, now in sight. The strength of our economic model and more importantly, our people, clearly demonstrate that we should face this current period with optimism. We can and we will rebuild our economy, get our people back to work and safely emerge from the pandemic.”
EPA report shows drop in Ireland’s power generation and industrial emissions
Preliminary analysis from the Environmental Protection Agency released this week reveals that greenhouse gas (ghg) emissions from Irish power-generation and industrial companies covered by the EU Emissions Trading Scheme (ETS) fell by 6.4 percent in 2020, their lowest level since the EU ETS was introduced in 2005. This compares however with a decrease of approximately 11-12 percent across Europe.
The decrease is due to the impact of lower production in some industrial sectors during the COVID-19 pandemic, combined with a significant drop in emissions from power-generation. Emissions from the electricity-generation sector decreased by 8.4 percent, due to increased use of renewable energy (mainly wind generation) and less of fossil fuels, such as peat, in our energy mix. The EPA did report that some sectors such as dairy processing and pharmachem are increasing emissions year on year.
The EPA is the Competent Authority in Ireland for the EU Emissions Trading System (ETS). This is an EU initiative which was set up to help it reach its climate targets under the Kyoto Protocol. It is the world’s first carbon market, and remains the largest. It operates as a ‘cap-and-trade system’ in which governments set an allowable total amount of emissions (‘cap’) over a certain period and issue tradable emission permits (‘trade’). These permits are typically good for 1 tonne of CO2 and are the are the currency in carbon markets. Further information about Ireland's overall greenhouse gas emissions is available on the EPA website, along with infographics and detailed greenhouse gas inventory.
New guidance published on human rights for business enterprises
Minister for Foreign Affairs and Minister for Defence, Simon Coveney, TD, has this week launched new guidance on human rights for business enterprises.
The guidance was developed by a multi-stakeholder group with representatives from business, government and civil society, as part of the implementation of the National Plan on Business and Human Rights. This plan aims to promote responsible business practices at home and overseas, including in developing countries, by all Irish business enterprises.
Breege O’Donoghue, Chair of the plan’s implementation group, pointed to the legislative developments in the area of sustainable corporate governance that are taking place at EU level, and stated that “it is essential that businesses familiarise themselves with the UN Guiding Principles on Business and Human Rights and implement best practice in their operations.”
She went on to urge Irish businesses to consult the guidance and also avail of a practical workshop for businesses, which is being organised by the Trinity Centre for Social Innovation, in partnership with The Global Business Initiative on Human Rights.
The new Guidance on Business and Human Rights for Business Enterprises is available here.
‘Your business journey to Net Zero’ in Northern Ireland – Thursday 29 April 2021 10:00-16:20
The Department for Business, Industrial Strategy & Energy (BEIS) is bringing its popular ‘Your business journey to Net Zero’ to Northern Ireland on 29 April. In conjunction with the Northern Ireland Office and the Federation of Small Businesses Northern Ireland, BEIS will run the event virtually and it is aimed at SME businesses in Northern Ireland that want to take part in tackling climate change, but are unsure of where to start
‘Your business journey to Net Zero’ will help SMEs understand the practical steps for embarking on their own Net Zero journey, and will help businesses consider the opportunities stemming from the transition to a low carbon economy.
Minister for Small Business, Consumers and Labour Markets, Paul Scully, and Minister of State at the Northern Ireland Office, Robin Walker will open the event. The UK government’s Net Zero Business Champion, Andrew Griffith MP, will be holding a panel session with businesses, and the Minister for the Economy in the Northern Ireland Executive, Diane Dodds MLA, will be also providing her closing comments in the afternoon.
In addition, there will be a virtual exhibition hall for delegates to find out about local and regional Northern businesses and institutions, along with more products and services that will be of interest to them as they look to lower their carbon emissions.
Click here for details and registration. All sessions will be recorded, and any questions can be emailed to business.engagement@beis.gov.uk
EU to borrow €806 billion to finance green and digital plan
The European Commission has outlined plans to borrow €806 billion on the capital markets to finance its Recovery and Resilience Fund to allow it give hundreds of billions of euros in grants and low-interest loans to EU countries. The move makes it the biggest debt issuer in euros. Around 30 percent, or €250 billion, will be issued in green bonds (the Commission will present a green bond standard later in 2021).
In addition to the €386 billion in loans to be repaid by EU countries, the Commission is expected propose new EU-wide levies in June to cover €407.5 billion in grants and service interest. The Recovery and Resilience Fund is the centrepiece of ‘NextGenerationEU’, the EU’s temporary recovery instrument to respond to the coronavirus crisis and to support the economic recovery and build a greener, more digital and more resilient future. The Recovery and Resilience Fund is an instrument to provide grants and loans to support reforms and investments in the EU Member States.
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