In this week’s bulletin, read about the economic importance and environmental challenges of data centres, new measures to accelerate electric vehicle adoption, Central Bank warnings on maintaining financial resilience, and Ireland’s improving environmental performance and growth in the green economy. Updates also cover UK Carbon Budget targets, renewable energy progress in Northern Ireland, EU policy priorities focused on competitiveness, decarbonisation and resilience, and a new ISO standard for net-zero transition planning by financial institutions, as well as the usual resources, articles and events.
Chartered Accountants Ireland
Chartered Accountants Ireland and British Irish Chamber of Commerce will hold panel discussion on mobilising private-sector investment in infrastructure next Tuesday on 9 June.
Ireland and the UK face significant infrastructure investment requirements over the coming decade. A recent British Irish Chamber of Commerce briefing with Sean O’Driscoll, member of the Accelerating Infrastructure Taskforce, highlighted that Ireland requires approximately €250bn in infrastructure investment, while the UK is expected to require £1tn over the next ten years.
In both markets, private-sector finance will play a critical role in delivering the scale of investment required. As governments seek to accelerate infrastructure delivery and economic growth, this discussion will explore how private-sector investment can be mobilised, the barriers that remain, and the opportunities for collaboration across these islands.
Members are encouraged to register for the session on Tuesday morning 9 June from 8am–10am in Chartered Accountants House which will be moderated by Michele Connolly, member of the Accelerating Infrastructure Taskforce and former Partner and Head of Global Infrastructure at KPMG.
Ireland
Report published into the value of data centres to Ireland
The Minister for Enterprise, Tourism and Employment, Peter Burke, TD, has published an independent report prepared by KPMG which assesses the economic contribution and strategic importance of the data centre sector in Ireland. The report, titled “The Value of Data Centres to Ireland”, asserts that data centres are a critical component of Ireland’s digital infrastructure, supporting economic activity, employment and investment across the wider economy. Key findings of the analysis include that data centres underpin much of Ireland’s broader economic activity with over €100 billion in annual Gross Value Added (GVA), 875,000 jobs, and €14.6 billion in annual employment-related taxes.
The report acknowledges that data centres are large energy users, and that challenges associated with further expansion of the sector include increasing energy demand, grid capacity constraints, and the need to manage carbon emissions in line with national climate targets. It highlights opportunities to support renewable energy deployment and to contribute to regional economic development through more balanced growth, and concludes that continued, managed development of the data centre sector will be critical to maintaining Ireland’s competitiveness, supporting digitalisation and enabling future economic growth.
Separately, a report published by the United Nations University Institute for Water, Environment and Health this week examines what is describes as “one of the most underexplored consequences of AI’s rapid expansion: the environmental footprints of the energy required to power it”. The report, Environmental Cost of Artificial Intelligence: Carbon, Water and Land Footprints, shows that AI is not only a digital technology, but also a material system with measurable environmental cost. It singles out Ireland as an example of globally distributed AI services creating intense local pressures, and describes how data centres in Ireland accounted for 21 percent of total metered electricity in 2023, exceeding all urban households, and how the national grid operator has paused new approvals around Dublin until 2028: “Ireland [is] a concrete, documented example of what happens when AI infrastructure growth outpaces energy planning — and a preview of what other countries are heading toward.”
€10 million funding for scheme accelerating switch to electric vehicles
A new scheme has been introduced to accelerate the transition from older, high-emitting internal combustion engine vehicles to cleaner electric vehicles (EVs). The ICE2EV Scheme, which will launch on 1 July and will be administered by the Sustainable Energy Authority of Ireland (SEAI), is a targeted measure that aims to remove fossil-fuel powered vehicles aged over 13 years from Ireland’s private car fleet and replace them with new battery EVs. Read more from Chartered Accountants Ireland here.
Central Bank warns that resilience must be protected
A Central Bank review has found that Ireland's financial system is starting from a position of strength, but that resilience must be protected. The Financial Stability Review, which assesses the risks to – and resilience of – the Irish financial system has found that risks to Ireland's financial system from the global environment have intensified. Commenting on the publication, Governor Gabriel Makhlouf said that a sustained energy shock could intensify cost pressures for businesses and households: “This is why preserving resilience is so critical right now. Strong capital buffers in our banks, prudent lending standards, and robust operational defences are essential to ensure the financial system continues to serve households and businesses.”
Ireland’s economy less resource- and emissions-intensive, says CSO report
Ireland’s economy is becoming less resource-intensive and less emissions-intensive and is producing fewer greenhouse gas emissions per unit of economic activity, according to a snapshot of key environmental indicators published by Central Statistics Office (CSO) ahead of World Environment Day on Friday 5 June. Read more from Chartered Accountants Ireland here.
Ongoing barriers in infrastructure delivery need to be researched, seminar finds
“Now is the time to begin researching the barriers to be tackled in the next Accelerated Infrastructure Delivery Plan”. This was the key action suggested by the National Economic & Social Council (NESC) Secretariat at a seminar recently held in the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation. The event was a strategic policy seminar for the Irish Government Economic and Evaluation Service (IGEES), the cross-government network of economists and policy analysts in various Irish government departments, the main goal of which is to improve public policy by ensuring that government decisions and spending are backed by data and economic analysis. Presenting his paper Addressing Trade-Offs in the Energy Transition Dr Cathal Fitzgerald, Senior Analyst at NESC said that research is needed on cultural, behavioural, and political barriers in the policy system and recommended, among other things some empirical work on rational risk aversion: “The current Accelerated Infrastructure Delivery Plan can rightly tackle legal, planning, regulatory, social, and operational barriers, and should be implemented without delay. However, Ireland’s persistent problem in delivering infrastructure across many sectors suggests that there are other issues at play.”
UK/Northern Ireland
UK government sets out proposed level for the seventh Carbon Budget
The UK has set out its proposed level for the seventh Carbon Budget, setting a science-led target of 87 percent emissions reduction in the period 2038 to 2042, as endorsed by the Environmental Audit Committee and the Climate Change Committee. The announcement comes as an independent report from the Energy and Climate Intelligence Unit shows that the net zero economy supports over one million jobs in the UK, adding £105 billion in gross value added (GVA) to the UK economy in 2025 alone. In October 2025, the government had published the Carbon Budget and Growth Delivery Plan, which brings together the actions being taken across government to meet carbon budgets 4-6, from 2023 to 2037.
Report finds high level of public concern in Northern Ireland about environmental issues
The Northern Ireland Environmental Statistics Report has been published today by the Department of Agriculture, Environment and Rural Affairs (DAERA). The statistical report, which is produced annually, contains information on a range of environmental indicators in Northern Ireland such as Public Attitudes and Access to Nature; Climate Change; Air; Water and Marine; Biodiversity and Land; Waste and Historical Environment. The report finds that the level of public concern about environmental issues was high in 2025/26, with 73 percent ‘very’ or ‘fairly’ concerned about the environment. Also revealed was that in 2025/26 illegal dumping of waste and litter (34 percent) was the greatest environmental concern for households in Northern Ireland followed by pollution of air, water and soil (29 percent). Northern Ireland’s greenhouse gas emissions were estimated to be 18.2 MtCO2e in 2023, a reduction of 31.5 percent since 1990 baseline levels, with urban traffic nitrogen dioxide levels having also decreased in 2025.
Electricity Consumption and Renewable Generation in Northern Ireland: Year Ending March 2026
Findings in the recently published ‘Electricity Consumption and Renewable Generation in Northern Ireland: Year ending March 2026’ report, which details the contribution of electricity generated from renewable sources in the region, show that more electricity was generated from renewable sources in the year to March 2026 than in the previous year, with the majority (73 percent) generated from wind. This was followed by bioenergy (19%), solar PV (6%), landfill gas (1 percent) and hydro / tidal generation (1 percent).
The report aids reporting on performance against the commitments in the Energy Strategy ‘Path to Net Zero Energy’ and the Climate Change Act target which is to “ensure that at least 80% of electricity consumption is from renewable sources by 2030.”
Europe
EU Commission adopts 2026 European Semester Spring Package
The EU Commission has adopted the 2026 European Semester Spring Package setting out policy guidance for Member States, with a particular focus on strengthening the EU’s competitiveness, strategic autonomy, as well as economic and social resilience and cohesion, while maintaining fiscal sustainability. The package responds to “escalating global tensions, heightened security risks and climate-related challenges, alongside volatile energy prices and persisting cost of living pressures continue to weigh on Europe's economy, affecting both households and businesses”, and focuses on unlocking the full potential of the Single Market, closing the innovation gap, accelerating decarbonisation and reducing strategic dependencies, while promoting jobs and skills, tackling the housing crisis and ensuring social fairness and cohesion.
"Climate impacts and preparedness in Europe" portal updates
The "Climate impacts and preparedness in Europe" web portal produced by the European Environment Agency has recently been updated with newest data on how most relevant climate hazards are impacting Europe and improved usability. It answers three key questions: What is Europe adapting to? How is Europe adapting? What enables or blocks progress towards resilience?
Investing in preparedness and climate adaptation pays off, economically and socially, by reducing damage, protecting livelihoods, and strengthening resilience as climate impacts intensify. As temperatures continue to rise across Europe, human and economic costs are rising too. Despite ongoing efforts to cut greenhouse gas emissions and boost adaptation efforts, economic losses from weather and climate-related events were €822 billion over the period 1980-2024, with 25 percent of losses occurring between 2021-2024, and with losses per year of c.€40–50 billion. By comparison, the European Union budget for supporting the bloc’s agricultural sector is €386.6 billion for the period 2021–2027, roughly €55 billion a year, representing 30 percent of the EU budget.
World
The International Organization for Standardization (ISO) has published a new standard for net-zero transition planning by financial institutions designed to protect and enhance value by supporting institutions’ response and contribution to a global net zero and climate-resilient economy. ISO 32212 Sustainable finance — Net zero transition planning for financial institutions applies to any financial institution, regardless of size, type and geographic location, with a particular focus on banking, insurance and investment institutions. Its provisions are applied in the context of the institution’s particular business model. The requirements and recommendations are designed to enable financial institutions to develop and maintain transition planning objectives and targets that advance the temperature and resilience goals of the Paris Agreement, and establish robust policies and processes to integrate these into their financial activities.
Technical Roundup
(From our colleagues in Professional Accounting)
Chartered Accountants Ireland has responded to the two European Commission’s (EC’s) call for views:
- The draft European Sustainability Reporting Standards (ESRS). While welcoming the finalisation of the ESRS, the Institute has called for the EC to pursue some long-term goals while the standards are maturing. This includes ensuring that reporting entities have a period of stability where the standards remain unchanged and a greater focus on long term alignment with other global sustainability reporting standards.
- The sustainability reporting standards for voluntary use. The Institute outlined in its response that there is concern that the voluntary standard may not meet stakeholder needs or deliver sufficient value chain information and that the EC should monitor its effectiveness and uptake, and act if it falls short of its objectives. There may be gaps between the voluntary standard and requirements under the ESRS, particularly on value chain data.
Accountancy Europe has also provided its feedback to the European Commission’s draft delegated act with the revised European Sustainability Reporting Standards (ESRS).
Resources
New guidance on finance teams’ need to consider climate and nature
Accounting for Sustainability (A4S) has created a nature guidance series to give finance teams the practical guidance and tools to help understand the link between nature and climate change, and actions to take to reflect this in financial decision making.
Articles
- 94,000 jobs on the line if Irish data centre capacity restricted (Business Post)
- Data centres a 'strategic opportunity' for Irish economy - Minister for Enterprise (RTÉ News)
- Ireland’s data centre strain a ‘cautionary tale’ for rest of world, UN says (Irish Times)
- In a time of sky-high oil prices, should Ireland go nuclear? (Irish Times)
- New laws to make gender pay reporting website mandatory for employers (Irish Independent)
- Two steps back, but three forward for sustainability reporting (Reuters)
- Mineral waste could supply more than half of Europe’s critical demand by 2050 (SustainabilityOnline.net)
Events
European Environment Agency, Webinar: What are the benefits of circular economy?
Transition to a more circular economy will not make products rounder. A circular economy reduces pressures to the environment and climate, while it fosters our economic security. But how much good precisely does a circular economy do?
Virtual, Jun 11, 2026 from 12:00 PM to 1:00 PM
Dublin Chamber, New EU Packaging Rules: Briefing with Repak
The EU’s new Packaging and Packaging Waste Regulation (PPWR) will bring major changes for businesses across Ireland and Europe. Join Dublin Chamber and Zoe Kavanagh, CEO at Repak, for a practical and commercially focused briefing exploring what PPWR means for Irish businesses, the timelines companies need to be aware of, and the steps organisations should begin considering today.
In person, Wed 17 Jun 2026, 08:30 AM - 10:00 AM, Dublin Chamber, 7 Clare Street, Dublin 2 D02 F9O2
Sustainability Centre
You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.
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