The Greenify Home Improvement Loan product to facilitate the retrofit of homes to improve energy efficiency has been launched by a group of eight Credit Unions in Ireland.  The Credit Unions, under the umbrella of Collaborative Finance CLG, will offer unsecured loans of up to €50,000 at 6.75 percent APR with a loan term of up to seven years (subject to certain qualifying conditions).  The loans are an effort to support the Government target set out in its Climate Action Plan to target the upgrading of 500,000 homes to a Building Energy Rating (BER) of B2 by 2030. The loan can be used, among other things, to upgrade heating systems, install insulation, install solar panels and upgrade doors and windows.  The Minister of State for Finance, Seán Fleming TD welcomed the launch of the new loan product in an effort to achieve this goals.  Reacting to the launch, the Minister said “The Government’s Climate Action Plan has set a target of upgrading 500,000 homes to a Building Energy Rating of B2 by 2030 and these targets represent a very significant increase in both the volume and depth of retrofit activity in Ireland. This initiative is therefore a positive step in supporting the achievement of these targets and can serve as a model of what can be achieved by credit unions when they work together.” Participating Credit Unions are in Mitchelstown, Bantry, Birr, Borrisokane, Ennistymon, Mullingar, St Jarlath's Tuam and Tullamore. Interested readers are encouraged to contact their local Credit Union directly to find out more and also visit greenify.ie. 

Originally posted on Business Post 10 October 2021.   Our circumstances today share numerous parallels with 1991, when Albert Reynolds delivered the first ever televised budget speech Corporation tax receipts up by an unexpected 40 per cent, inflationary pressures driving a bigger social welfare package, a two-tier corporation tax system, and disputes over pension payments. No, not 2021, but 1991, when the late Albert Reynolds delivered his budget speech, televised for the first time. This Tuesday will be the same. There will be an economic update and forecast along the lines of “not too bad, but could be better”, a helpful reminder of the wonders achieved by the government in the previous 12 months, and some tinkering with tax bands and reliefs along with some social welfare enhancements and spending commitments. Is the budget day equilibrium established by Reynolds 30 years ago still appropriate for a nation which has more than twice as many people employed as in 1991, more than two million extra citizens, and eight times the tax receipts? When it comes to tax policy, neither the Irish economy nor the Irish voter is particularly amenable to any type of radical change. Big initiatives fail. The universal social charge, for example, is little more than a way of squeezing more income tax from a system constrained by having only two tax rates, 20 per cent and 40 per cent. The guiding principle behind local property tax, meanwhile, seems to be that it should not raise too much money. Water charges, a tax in every respect other than their name, failed to get off the ground at all, while we still tinker with stamp duty rates in the hope they might have some impact on the behaviour of our property market. This is a triumph of optimism over experience. Since the Reynolds era, however, our control over interest rates and exchange rates has been surrendered to the EU. Last week, we conceded partial control over a third lever of economic policy, the setting of tax rates. To its credit, the government seems to have ensured that this concession on corporation tax was not made lightly. It would have been simpler for Paschal Donohoe to go along with the 130 or so countries which had already signed up to the OECD twin track proposals to tax the very biggest companies where they make their sales, and to tax the top tier of industry at a rate of at least 15 per cent. The 12.5 per cent rate had acquired totemic status here as an element of economic policy, but Ireland is not alone in having to abandon its totems. The European Commission surely had to take a deep breath when it signalled it would permit our application for a lower rate for smaller companies under the new plan. A twin-track tax system runs counter to EU states aid principles – favouring companies falling within a particular category over others was the reason we had to abandon the old, reduced rates of corporation tax in the 1990s. The allegation that Ireland offered preferential treatments is the rationale behind Margarethe Vestager’s pursuit of the Apple “tax as state aid” case. The commission should now do the decent thing and drop the appeal. The acceptance of the headline points in the OECD plan is one matter; how they are to be implemented is quite another. The European Commission will transpose key elements of the agreed position at OECD level into a directive for adoption by the EU member countries. Other aspects will be achieved through international treaties. That is a lot of ground to cover. Ireland’s active participation in these negotiations will be crucial, but Ireland will not be the only country with concerns. Estonia, another EU member, only signed up this week too. None of the changes announced on Thursday will have an impact on exchequer receipts any time soon. By pushing the corporation tax crisis out of the way for now, Tuesday’s budget can be formulated along more traditional lines. Though the shadow of the pandemic still looms across society and the economy, don't expect too much radical thinking. Rather than addressing the fundamental question of whether people are paid enough in this country, expect to see some tinkering with the tax bands. Rather than seeing pension funding being put on a model which reflects the nation's demographics, expect to see further tinkering with retirement ages and the benefits package. Ireland doesn't do alarms or surprises on Budget Day. With the prospect of a two-tier tax system for companies, the Reynolds equilibrium is being fully restored. Dr Brian Keegan is Director of Public Policy at Chartered Accountants Ireland

This week, the CCAC presented proposed carbon budgets to the government setting out the limits on greenhouse gas emissions for 5-year periods of time. The first carbon budget programme will comprise carbon budgets for the following periods: 2021-2025; 2026-2030 and 2031-2035, with the carbon budget for 2031-2035 being provisional. The average year-on-year reductions in the first budget which runs until the end of 2025 has been set at just under 4.8 per cent, while the average year-on-year reductions in the second budget to 2030 is set at 8.3 per cent. A limit of 295 million tonnes of CO2 equivalent has been set on emissions for 2021-2025 and a 200 million tonnes CO2 limit for 2026-2030 relative to a 2018 baseline. The carbon budget for 2031-2035, which is provisional, is recommended at 151 million tonnes CO2. The budgets are part of a roadmap of actions legislated for under the Climate Action and Low Carbon Development (Amendment) Act 2021. The Act commits Ireland to reach a legally-binding target of net-zero emissions no later than 2050, and a cut of 51 percent by 2030 (compared to 2018 levels). Commenting on the programme, Marie Donnelly, Chair of the CCAC said: “The proposed carbon budgets will have an impact on society and the economy but allow us to act on climate change in a planned and organised way. The budget is based on the best available science and defines an appropriate and necessary path to addressing the climate challenge. Many of the changes required now will only have a real impact on emissions in the second period. Now is the time to put policies and supports in place that will help those people, communities and businesses that will be impacted by the significant changes we need to make to how we live, work and travel.” Noting the requirement for everyone in society to play their part, Ms Donnelly said “the carbon budgets provide a framework, but what is urgently required is transformative change which is led by all of Government on a sustained basis, supported by all sectors of the economy, and all members of society. This will require significant investment across the economy.” The proposed carbon budgets will go to Government and then to the Oireachtas. The Oireachtas will review and approve the budgets within a 4-month period. Once these overall, economy-wide carbon budgets are approved, the Government will have the challenge of dividing the overall carbon budgets into sectoral emissions ceilings. A sectoral emissions ceiling is the maximum amount of greenhouse gas emissions that are permitted in a sector of the economy during each 5-year carbon budget. The Minister for the Environment, Climate and Communications, in consultation with other relevant Ministers, will develop a sectoral emissions ceiling for each relevant sector within each 5-year budget, once the overall carbon budget has been adopted. The Environmental Protection Agency (EPA) and the CCAC will produce annual reports to inform monitoring of compliance with national and sectoral progress towards each carbon budget and sectoral emissions ceiling. More information can be found at this link.

UK Chancellor, Rishi Sunak announced the UK government’s Autumn Budget and Spending Review 2021 this week, in which he pledged a major increase in public spending of £150 billion by 2024-25 including significant spending to boost the drive towards net zero.  The drive to net zero The following are among the measures announced across the UK: £3.9 billion to decarbonise buildings, including £1.8 billion to support low-income households to make the transition to net zero while reducing their energy bills. £6.1 billion to boost the number of zero emission vehicles, help to develop greener planes and ships, and encourage more trips by bus, bicycle, and foot. £380 million for the UK’s offshore wind sector including investment in offshore wind ports in Teesside and the Humber Funding for the £1 billion Net Zero Innovation Portfolio which is accelerating near-to-market low-carbon technology innovations £385 million to develop the next generation of small and advanced modular reactor technologies. A further £625 million for the Nature for Climate Fund, ensuring total spend of more than £750 million by 2024-25 to help meet the commitment to plant at least 7,500 hectares of trees every year in England by 2025 and restore 35,000 hectares of peatland. Read the Budgetary documents as well as a summary of measures announced.

The EU’s recently published State of the Energy Union report shows that renewables overtook fossil fuels as the number one power source in the EU for the first time in 2020, generating 38 percent of electricity, compared to 37 percent for fossil fuels. The report analyses how energy and climate policies have been impacted by the COVID-19 pandemic in the past year, and it presents the substantial legislative progress in pursuing the EU's decarbonisation efforts. To date, nine EU Member States have already phased out coal, 13 others have committed to a phase-out date, and four are considering possible timelines. Compared to 2019, EU27 greenhouse gas emissions in 2020 fell by almost 10 percent, mainly due to the COVID-19 pandemic, which brought overall emission reductions to 31 percent, compared to 1990. Read the report.

This week’s bulletin looks at Ireland's first carbon budgets and the spending allocated to Northern Ireland from the UK’s Autumn Budget which includes funding for levelling up, climate change and a new trade and investment hub in Belfast. We also cover the launch of Ireland’s public conversation on well-being as well as the announcement that renewables have overtaken fossil fuels as the number one power source in the EU. Ireland's Climate Change Advisory Council (CCAC) publishes proposed carbon budgets This week, the CCAC presented proposed carbon budgets to the Irish Government setting out the limits on greenhouse gas emissions for 5-year periods of time. The first carbon budget programme will comprise carbon budgets for the following periods: 2021-2025; 2026-2030 and 2031-2035, with the carbon budget for 2031-2035 being provisional. The average year-on-year reductions in the first budget which runs until the end of 2025 has been set at just under 4.8 per cent, while the average year-on-year reductions in the second budget to 2030 is set at 8.3 per cent. A limit of 295 million tonnes of CO2 equivalent has been set on emissions for 2021-2025 and a 200 million tonnes CO2 limit for 2026-2030 relative to a 2018 baseline. The carbon budget for 2031-2035, which is provisional, is recommended at 151 million tonnes CO2. The budgets are part of a roadmap of actions legislated for under the Climate Action and Low Carbon Development (Amendment) Act 2021. The Act commits Ireland to reach a legally-binding target of net-zero emissions no later than 2050, and a cut of 51 percent by 2030 (compared to 2018 levels). Commenting on the programme, Marie Donnelly, Chair of the CCAC said: “The proposed carbon budgets will have an impact on society and the economy but allow us to act on climate change in a planned and organised way. The budget is based on the best available science and defines an appropriate and necessary path to addressing the climate challenge. Many of the changes required now will only have a real impact on emissions in the second period. Now is the time to put policies and supports in place that will help those people, communities and businesses that will be impacted by the significant changes we need to make to how we live, work and travel.” Noting the requirement for everyone in society to play their part, Ms Donnelly said “the carbon budgets provide a framework, but what is urgently required is transformative change which is led by all of Government on a sustained basis, supported by all sectors of the economy, and all members of society. This will require significant investment across the economy.” The proposed carbon budgets will go to Government and then to the Oireachtas. The Oireachtas will review and approve the budgets within a 4-month period. Once these overall, economy-wide carbon budgets are approved, the Government will have the challenge of dividing the overall carbon budgets into sectoral emissions ceilings. A sectoral emissions ceiling is the maximum amount of greenhouse gas emissions that are permitted in a sector of the economy during each 5-year carbon budget. The Minister for the Environment, Climate and Communications, in consultation with other relevant Ministers, will develop a sectoral emissions ceiling for each relevant sector within each 5-year budget, once the overall carbon budget has been adopted. The Environmental Protection Agency (EPA) and the CCAC will produce annual reports to inform monitoring of compliance with national and sectoral progress towards each carbon budget and sectoral emissions ceiling. More information can be found at this link. UK’s Autumn Budget and Spending Review - “prepares the world for a new economy post-Covid” UK Chancellor, Rishi Sunak announced the UK government’s Autumn Budget and Spending Review 2021 this week, in which he pledged a major increase in public spending of £150 billion by 2024-25 amid higher-than-expected economic growth.  The Spending Review 2021 (SR) sets departmental budgets up to 2024-25. Specifically for Northern Ireland, the Chancellor promised the Northern Ireland Executive an extra £1.6bn per year on average over the next three years, on top of its annual £13.4bn spending settlement (see Box 3.C ). This according to the budgetary documents represents the largest annual funding settlement for the devolved governments since 1998. Spending specific to Northern Ireland includes: £1 billion for farmers and land managers and £9.3 million to support fisheries over the SR An additional £70 million funding for the British Business Bank to build on its existing programmes in Northern Ireland Establishing a new trade and investment hub in Belfast, to enable the benefits of the UK’s global trade policy are channelled to Northern Ireland A separate £150 million Community Ownership Fund, established to protect “treasured assets” will allocate funds to develop a digital hub in Cushendall, Co. Antrim. £14.9 million for the Tackling Paramilitarism Programme over the SR, contributing to a safer Northern Ireland. The drive to net zero Significant spending has been allocated across the UK to boost the drive towards net zero by 2050 including: £3.9 billion to decarbonise buildings, including £1.8 billion to support low-income households to make the transition to net zero while reducing their energy bills. £6.1 billion to boost the number of zero emission vehicles, help to develop greener planes and ships, and encourage more trips by bus, bicycle, and foot. £380 million for the UK’s offshore wind sector including investment in offshore wind ports in Teesside and the Humber Funding for the £1 billion Net Zero Innovation Portfolio which is accelerating near-to-market low-carbon technology innovations £385 million to develop the next generation of small and advanced modular reactor technologies. A further £625 million for the Nature for Climate Fund, ensuring total spend of more than £750 million by 2024-25 to help meet the commitment to plant at least 7,500 hectares of trees every year in England by 2025 and restore 35,000 hectares of peatland. Levelling up The UK government’s ambition behind the concept of ‘levelling up’ is to reduce inequality between places (‘levelling’) while improving outcomes in all places (‘levelling up’). The levelling up agenda, which involves the creation of a Levelling Up Fund commits to investment in infrastructure that improves everyday life across the UK, including regenerating town centre and high streets, upgrading local transport, and investing in cultural and heritage assets. The Autumn Budget announced some specific measures for Northern Ireland with £49 million allocated from the Levelling Up Fund for 11 projects, including: an Electric Vehicle charging network across Northern Ireland, the redevelopment of a derelict Ministry of Defence site in Derry/Londonderry into an urban community farm, and improved sports facilities in Portrush. Read the Budgetary documents as well as a summary of measures announced. For an overview of the key tax highlights, please read the Institutes newsletter that issued this week. Ireland launches a public conversation on the Well-being Framework This week, the Irish Government launched a public conversation on the Well-being Framework for Ireland. This follows publication of the first report on Ireland’s Well-being Framework in July, which proposed a vision and conceptual framework for Ireland. The overarching vision for the framework, is enabling everyone to live fulfilled lives now and into the future. The Well-being Framework is made up of a Conceptual Framework, with 11 dimensions or elements including, subjective well-being, mental and physical health, housing, environment and climate, knowledge and skills and work and job quality. A Well-being Portal has been published which will allow users to explore the well-being initiative in more depth and to engage with ongoing and future work in the area. The CSO also provide statistics on how Ireland is doing in terms of well-being as well as comparing Ireland internationally. People are encouraged to give their views on the Framework, via a survey. Speaking at the launch this week, Taoiseach Micheál Martin said: “The Well-being Framework represents an important shift towards systematically understanding and measuring progress in the collective areas that provide for a good life in Ireland. I would encourage people to engage with this important cross-Government initiative. It is only through feedback that we can improve the Framework in order to better reflect what is important for the people of Ireland. I also welcome the publication of the CSO’s Wellbeing Information Hub today and thank them for their ongoing work in providing good quality data in the area of well-being and quality of life.” Renewables overtake fossil fuels as the number one power source in the EU The EU’s recently published State of the Energy Union report shows that renewables overtook fossil fuels as the number one power source in the EU for the first time in 2020, generating 38 percent of electricity, compared to 37 percent for fossil fuels. The report analyses how energy and climate policies have been impacted by the COVID-19 pandemic in the past year, and it presents the substantial legislative progress in pursuing the EU's decarbonisation efforts. To date, nine EU Member States have already phased out coal, 13 others have committed to a phase-out date, and four are considering possible timelines. Compared to 2019, EU27 greenhouse gas emissions in 2020 fell by almost 10 percent, mainly due to the COVID-19 pandemic, which brought overall emission reductions to 31 percent, compared to 1990. Read the report.