While people from around the world gather in Glasgow to attend COP26, what is the state of Ireland’s CO2 emissions and how can we strengthen our commitment? Kim McClenaghan explains. The Environmental Protection Agency (EPA) provides the estimates of greenhouse gas emissions in Ireland. Its latest data shows that overall greenhouse gas emissions in Ireland decreased by 3.6% in 2020, and energy industry emissions decreased by 7.9%. The decrease was primarily driven by economic restrictions imposed in response to the pandemic, reduced peat use in power generation and an increase in renewable generation. Despite the decrease in emissions, the EPA warns that Ireland is still not on the pathway required to meet future targets and a climate neutral economy. To achieve permanent emission cuts in line with the Paris Agreement, it will be vital that this decrease is not an isolated occurrence, but rather part of a long-term trend as economic activity fully resumes. In the past year, Ireland’s long-term climate ambition has been restated, and the Climate Action and Low Carbon Development (Amendment) Bill 2021 has been passed into law by the Oireachtas. The Bill sets out the ‘national climate objective’ to achieve a climate-neutral economy no later than 2050. This target is consistent with the Paris Agreement and other international obligations. Carbon budgets To realise this ambition, the Climate Change Advisory Council has been tasked with proposing economy-wide carbon budgets, which will then be applied across relevant sectors by the Minister for the Environment and approved by the Government. The first carbon budget will see emissions reduced by 4.8% on average between 2021 and 2025. The second budget, running from 2026 to 2030, will see emissions reduced by 8.3% on average. The first two carbon budgets will provide for a 51% reduction in greenhouse gas (GHG) emissions by 2030 relative to 2018 levels, resulting in a cut of almost 35 million tonnes of CO2. The scale and pace of the economic and societal change and investment needed to achieve these targets are significant, but they will be necessary to reduce our emissions consistently and achieve the 1.5°C goal set by the Paris Agreement. Raising ambition The overarching aim of the climate summit in Glasgow – COP26 – is to mobilise stronger and more ambitious climate action from governments to keep the 1.5°C Paris Agreement goal within reach. This will require a significant strengthening of climate commitments from all countries, and especially from the G20 as without concerted action from this group, the chances of limiting warming to 2°C, let alone 1.5°C, will all but disappear. Converting climate pledges into action Governments have a pivotal role to play in creating the enabling environment for the transition to net-zero through policy and regulatory reform and investment. National targets need to be underpinned by policies that will deliver change at the pace and scale required. These policies will vary by nation, depending on the socio-political and economic context, but need to set the regulatory environment that businesses and individuals operate within, and encourage capital to be deployed to the right places. This requires clear overarching strategy and ambition, long-dated policy mechanisms, and the removal of fiscal or other disincentives. Private sector execution We have seen an unprecedented number of net-zero commitments by the private sector in the last 18 months. Over 3,000 businesses are now part of the Race To Zero Campaign, joining 733 cities, 31 regions, 173 of the biggest investors, and 622 higher education institutions. Alongside 120 countries, they form the largest ever alliance committed to achieving net-zero emissions by 2050 at the latest, collectively making up nearly 25% of global CO2 emissions and over 50% of GDP. Over half of the sectors that make up the global economy are now committing to halve their emissions within the next decade and achieve near-term emissions reduction targets. In each of these sectors, at least 20% of the major companies by revenue are aligning around sector-specific 2030 goals in line with delivering net-zero emissions by 2050. Time for all businesses to commit, plan and act Making the transition to a more environmentally and socially responsible world is now an urgent business imperative. We have less than two business cycles left to deliver the necessary changes. Working alongside governments, and providing the mandate and impetus for them to go further and faster, is vital if we are to keep warming to 1.5°C and avoid catastrophic climate change. By taking firm and decisive action now to halve global emissions by 2030 and reach net-zero emissions by no later than 2050, we have a chance to succeed. Kim McClenaghan is a Partner in Consulting and Head of the Energy, Utilities & Sustainability Advisory team at PwC.

  The Government has published its Climate Action Plan, which sets out how it will achieve its ambitious goal of reducing greenhouse gas emissions by 51% by 2030 and achieving net zero by 2050. Reacting to the plan, the Institute urged Government to rally businesses to achieve targets stating a collaborative approach is needed for decarbonisation targets to be met. The plan aims to reduce Ireland’s dependence on fossil fuels, use indigenous renewable resources for power, improve home heating, and create jobs, and lists indicative ranges of emissions reductions for each sector of the economy. Although overall carbon budgets have already been proposed to government by the Climate Change Advisory Council stating the total amounts of greenhouse gases that each sector can emit in a given five-year period, these carbon budgets have yet to go to Oireachtas for approval. Once they do the Governments will decide how that budget is divided out among different sectors of the economy. The Climate Action Delivery Board will hold each Department and public body accountable for the delivery of actions set out in the Climate Action Plan and will present a delivery report to Government each quarter. The plan will be updated annually to ensure alignment with carbon budgets and sectoral ceilings. Key highlights of this Plan include: Electricity A planned reduction in emissions from electricity by 62% – 81% from 2018 levels, with the phasing-out of coal and peat-fired electricity generation, and an increase in renewable electricity – wind and solar – of up to 80% by 2030 A support scheme for micro-generation allowing homeowners to generate their own electricity and sell what they don’t use back to the national grid, with a separate small-scale generator scheme for farmers, business and communities to generate electricity and sell to the grid. Complete the phase-out of coal and peat-fired electricity generation A review of the data centre strategy to ensure the sector supports renewables and emissions targets   Enterprise Launch of online Climate Toolkit 4 Business IDA, Enterprise Ireland and SEAI to promote investment and employment in decarbonisation, and align supports with emissions reduction A new obligation to ensure a proportion of energy for heat comes from renewable sources   Homes & Buildings A new National Retrofit Plan to drive demand, with blended low-cost loans with SEAI grants to make retrofit affordable. Three more training centres for retrofit upskilling Phase-out use of fossil fuels for space and water heating in all new buildings, and promotion of use of electric heat pump or other low carbon technology in new and existing residential and commercial buildings   Transport Increase in the number of electric vehicles to circa 1 million by 2030, to include 1,500 electric buses and around 850,000 electric cars by 2030 Update of the public transport and public fleets to low emission alternatives, including the expansion of the electrification of rail fleet Enabling of 500,000 daily sustainable travel journeys by 2030 through major public transport projects, and expansion of rail services, cycling and walking infrastructure   Agriculture, Land Use, Forestry and the Marine Land use review to ensure that optimal land use options inform all relevant government decisions Management of emissions from dairy herd and transformation of model of beef production, along with an increase in organically farmed land Review of diversification opportunities for farmers, including energy production, agroforestry and woodland creation, and increase in afforestation with new Forestry Programme to launch in 2023   The Circular Economy Publication of whole of Government Circular Economy Strategy Reduction of food waste by 50% by 2030, ensure all plastic packaging is reusable or recyclable by 2030 and introduction of a Deposit Return Scheme in 2022   Public Sector Leading by Example Reduction of emissions from the public sector by 51% by 2030, with Green Teams in every public body Prohibition of new fossil fuel heating systems in public buildings after 2023 (limited exceptions), andimprovement of energy efficiency of public sector from 33% in 2020 to 50% by 2030 Introduction of Sustainable Mobility Policy in the Public Sector, and all new fleet purchases to be electric from 2023 (where vehicle type available)   Just Transition to a Climate Neutral Ireland Establishment of a Just Transition Commission to integrate just transition principles into climate policy in all sectors, expansion of programmes in the Midlands with €84.5m from the EU Just Transition fund, and National Dialogue on Climate Action to be held, to include most affected groups   International Action Preparation of Climate Finance Roadmap, and development of Climate Diplomacy Strategy   Citizen Engagement and Community Leadership Improvement of climate literacy by promoting understanding of climate change through education and communications, promote active engagement at local level, and an increase in the number of Sustainable Energy Communities to 1,500 by 2030   Adaptation Review of the National Adaptation Framework, research to support national, sectoral adaptation planning, assessment of the impact of climate change on key sectors, and inclusion of adaptation actions in sectoral policies. Carbon Pricing & Cross-Cutting Policies Expenditure and taxation policies to support the achievement of climate objectives, using increased carbon tax revenue for social protection measures, and expanded retrofitting for low income and social homes and agri-environment schemes Research, development and innovation in climate action to be supported Development of a sustainable and climate resilient financial system to be supported Digital transformation, sustainable remote working practices and the roll-out of the National Broadband Plan to be promoted. Tax measures The plan states that “taxation policy can play a central role in incentivising the behavioural change necessary to reduce our GHG emissions and to support additional environmental benefits.”  In addition to increasing the annual rate of carbon tax until at least 2030, contained within the plan is a commitment to annually review and reform environmental tax measures including: Examining the introduction of an emissions-based tax regime for light goods vehicles Examining gradually phasing out VAT rebates on commercial fuel use where electric alternatives exist Examining the gradual equalisation of the diesel and petrol excise rates Introducing environmental criteria into the vehicle BIK regime, with its commencement sensitive to typical fleet renewal timescales Supporting the use of the accelerated capital allowance regime to promote business investment in energy efficient equipment and gas-powered commercial vehicles. These regimes will be reviewed in advance of their respective sunset clauses Assessing the role for taxation measures in meeting building retrofit targets set out in this plan   You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our Sustainability Centre. Read all our updates on our Public Policy web centre  

History was made at COP26 today as countries, banks and organisations committed to move away from the biggest contributor to climate change - coal. Phasing out coal and transitioning to clean energy are needed to minimise temperature rises in line with the Paris Agreement.    At least 23 countries, including five of the world’s top 20 coal power-using countries committed to phase out coal power. These are: South Korea (5th), Indonesia (7th), Vietnam (9th), Poland (13th) and Ukraine (19th). However, it excludes some of the world's most coal-dependent nations, including Australia, China and India. In a new ‘Global Coal to Clean Power Transition Statement’, countries also committed to scaling up clean power to ensure a just transition away from coal.   Banks and financial institutions also made landmark commitments to end the funding of unabated coal by the end of 2021, including major international lenders like HSBC, Fidelity International and Ethos. This follows recent announcements from China, Japan and South Korea to end overseas coal financing.  This means that all significant public international financing for coal power has effectively ended. COP26 President, Alok Sharma said: “From the start of the UK’s Presidency, we have been clear that COP26 must be the COP that consigns coal to history.  With these ambitious commitments we are seeing today, the end of coal power is now within sight.  Securing a 190-strong coalition to phase out coal power and end support for new coal power plants and the Just Transition Declaration signed today, show a real international commitment to not leave any nation behind.” Other measures announced today include: A strategic partnership between the Energy Transition Council and the Global Energy Alliance for People and Planet(GEAPP) was formed. $10 billion funded by development banks and philanthropists aims to deliver clean, renewable energy to 1 billion people in developing and emerging economies and create 150 million green jobs by 2030.  14 countries including India, Indonesia, Japan and Nigeria committed to the largest ever increase in product efficiency by signing up to a global goal of doubling the efficiency of lighting, cooling, motors and refrigeration by 2030. The Africa and Latin America Green Hydrogen Alliances was launched with membership from six African countries and five Latin American countries. They aim to begin development of millions of metric tons of production of reliably near-zero-carbon green hydrogen to be used in domestic and international industries worldwide.  Read more on these updates.

UK Prime Minister Boris Johnson welcomed the first ever COP World Leaders session on forests and land use stating that “we cannot deal with the devastating loss of habitats and species without tackling climate change, and we cannot deal with climate change without protecting our natural environment and respecting the rights of indigenous people who are its stewards.” Ireland’s Taoiseach Micheál Martin told the COP26 climate conference that Ireland is “ready to play its part” and that "if we act decisively now, we will offer humanity the most valuable prize of all - a liveable planet". Among the commitments and announcements today (2/11/21) were: Deforestation commitments 114 leaders took a landmark step whereby they committed to halt and reverse forest loss and land degradation by 2030. The pledge is backed by $12bn in public and $7.2bn in private funding. The agreement greatly expands on a commitment made by 40 countries as part of the 2014 New York Declaration of Forests and promises more resources. This was enhanced with a commitment by CEOs from more than 30 financial institutions with over $8.7 trillion of global assets – including Aviva, Schroders and Axa – committing to eliminate investment in activities linked to deforestation.    Methane emissions More than 80 countries have signed up to a US and EU pledge to cut methane emissions by 30 percent by 2030. It’s estimated that 30% of global warming since the Industrial Revolution is due to methane. Brazil – one of the five biggest emitters of methane, which is generated in cows' digestive systems, in landfill waste and in oil and gas production signed up to the pledge. Three others – China, Russia, and India – have not signed up, while Australia has said it will not back the pledge. Clean technologies More than 35 world leaders have signed up to the new Glasgow Breakthrough Agenda that will see countries and businesses work together to dramatically scale and speed up the development and deployment of clean technologies. The aim is to make clean technologies the most affordable, accessible, and attractive choice in the most polluting sectors by 2030, Signatories include the US, India, EU, developing economies and some of those most vulnerable to climate change – collectively representing more than 50% of the world’s economy and every region. EU to press ahead with Carbon Border Tax European Commission President Ursula von der Leyen said that the EU supports international carbon pricing efforts, but that it will press ahead with its own initiative to tax emissions in EU imports. “If we would live in a perfect world, I would love to have a global price,” she said, but unfortunately that’s not yet the case. The tax is currently being negotiated in the European Parliament and by EU countries, and it will only be applied from 2023, with a two-year trial run. US re-joins effort pushing for higher climate targets The US. has re-joined a group of countries seeking higher climate targets to align with the goal of limiting warming to 1.5 degrees Celsius. The High Ambition Coalition is an informal alliance of small vulnerable countries and big Western states including the EU was formed in advance of the 2015 Paris Agreement. Supporting South Africa’s energy transition Leaders from South Africa, the UK, the United States, France, Germany, and the European Union have announced a partnership to support South Africa with an Accelerated Just Energy Transition. $8.5billion can be made available over the next 3-5 years to support South Africa – the world’s most carbon-intensive electricity producer – to achieve the most ambitious target within South Africa’s upgraded and ambitious Nationally Determined Contribution. Read more updates

  The major global climate summit COP26 got underway today in Glasgow. World leaders addressed the opening session, beginning with UK Prime Minister Boris Johnson. All underscored the need for urgent action. UN Secretary-General Antonio Guterres gave countries a stark warning: “The sirens are sounding. Our planet is telling us something - and so are people everywhere. We must listen — we must act — and we must choose wisely.  Choose ambition. Choose solidarity. Choose to safeguard our future and save humanity” and he urged developed countries and the emerging economies to build coalitions to create the financial and technological conditions to accelerate decarbonisation of the economy. US President Joe Biden stressed that “none of us can escape the worst that’s yet to come if we don’t seize this moment,” announcing that his administration would commit to meeting a goal of reducing US emissions by 50% to 52% below 2005 levels by 2030. President Biden insisted that climate change is not a “hypothetical threat" but one that is  “destroying people’s lives and livelihoods, and doing it every single day.” This was a view made starkly clear by Mia Mottley, Prime Minister of Barbados: "How many more pictures of people must we see on these screens without being able to move? Are we so blinded and hardened that we can no longer appreciate the cries of humanity?", adding that a global temperature rise of 2C is "a death sentence for the people of Antigua and Barbuda, for the people of the Maldives, of Dominica and Fiji, of Kenya and Mozambique, and yes, for the people of Barbados," Arriving at the summit, Taoiseach Michael Martin described COP26 as providing a unique opportunity to increase ambition and “turn the tide on climate change” and  confirmed that a Cabinet sub-committee is due to consider the revised Climate Action Plan on Wednesday before it is put before the full Cabinet. The Taoiseach, who is due to deliver Ireland's statement to the summit tomorrow, also announced that Ireland’s global climate finance will be more than doubled from its current level of €93 million per year to at least €225 million by 2025. Several world leaders were noticeable in their absence such as China’s President Xi Jinping, Turkish President Recep Tayyip Erdogan, Brazilian President Jair Bolsonaro and Russian President, Vladimir Putin. Indian President Narendra Modi pledged that India will reach net zero emissions by 2070 and also made a commitment to generating 500GW of non-fossil fuel energy by 2030 The last word should perhaps be given to Sir David Attenborough, who today called for a new industrial revolution powered by sustainable innovations, and for people to be ‘motivated by hope not fear’ “In my lifetime, I have witnessed a terrible decline. In yours, you could and should witness a wonderful recovery.”

The UK is seeking to enshrine mandatory climate disclosures for its largest companies in law, making it the first G20 country to do so.  New legislation will require over 1,300 UK-registered companies and financial institutions to disclose their climate-related risks and opportunities in line with the Taskforce on Climate related Financial Disclosures (TCFD) recommendations from April 2022 (subject to Parliamentary approval).   Companies mandated to do so will include many of the UK’s largest traded companies, banks and insurers, as well as private companies with over 500 employees and £500 million in turnover. This announcement follows the publication of the UK's Net Zero Strategy and forms part of the UK government's commitment to "making the UK financial system the greenest in the world." During the announcement, Energy and Climate Change Minister Greg Hands said: "If the UK is to meet our ambitious net-zero commitments by 2050, we need our thriving financial system, including our largest businesses and investors, to put climate change at the heart of their activities and decision making. By mandating large businesses to disclose their climate risks and opportunities – the first G20 country to do so – we are showing global leadership by making our financial system the greenest in the world." Read more.