In this week’s Public Policy bulletin, we take a look at the latest economic assessments from both the Fiscal Advisory Council and Central Bank as well as the Government’s launch of the first ever National Hub Summit for remote working. In addition, we examine this week’s latest statistical releases from the Northern Ireland Statistics and Research Agency on 2021 business performance and levels of youth unemployment as well as a significant judgment from the Court of Justice of the EU on the validity of public beneficial ownership registers.  Fiscal Advisory Council publishes latest Fiscal Assessment Report  The Irish Fiscal Advisory Council (IFAC) this week published its latest Fiscal Assessment Report “A Budget in Time of Inflation” in which it assessed the Government’s Budget 2023 in terms of the broad fiscal stance, the economic and budgetary forecasts, and Ireland’s overall compliance with fiscal rules. Noting how Ireland’s economic growth had slowed considerably during 2022, the Council acknowledged that while Irish economic activity continues to expand in cash terms, inflation had weakened real incomes. With Budget 2023 now forecasting gross national income growth of just 0.4 percent in 2023, this marks a significant contraction from projected GNI growth of 5 percent this year, and actual growth 15 percent last year. Despite this however, IFAC’s report was broadly supportive of the Government’s budgetary strategy, observing how it struck the "appropriate balance between protecting vulnerable households and avoiding inflation". Central Bank increases capital buffer in response to global financial conditions In its second Financial Stability Review of 2022, the Central Bank this week announced an increase in the Countercyclical Capital Buffer (the level of reserves banks must keep) in response to the tightening of global financial conditions and what it sees as “increased downside risks given the size of the energy and inflation shock” in Ireland. Consistent with previous guidance, the Counter-Cyclical Capital Buffer rate will now increase to 1 percent marking a further step towards the gradual rebuilding of the buffer rate to 1.5 percent.   In addition, new rules for Irish property funds will also be introduced which will limit the amount of borrowed finance in these funds to 60 percent. Launch of National Hub Summit to promote and expand remote working in rural areas  Minister for Rural and Community Development, Heather Humphries TD, this week made a series of announcements in support of remote working as she launched the first ever National Hub Summit in Athlone.  The summit brought together businesses, hub managers, remote workers and and policy makers, less than 18 months after the launch of the Connected Hubs platform to further develop the Government’s expansion of its remote working initiative. The Connected Hubs online platform was originally launched by the Government in May 2021 to allow people to choose from a network of remote working hubs and hot desks around the country from which they could work. Speaking at the launch of the summit, Minister Humphries announced that a new pilot scheme that will match employers and employees to specific hubs will be launched in the New Year. The scheme will introduce the concept of ‘anchor tenants’ and the use of Connected Hubs as a ‘second workplace’ for staff. In addition, funding of up to €50,000 has been granted to all local authorities outside of Dublin so that they can market their towns and villages as destinations for people who want to move to rural Ireland. Moreover, the Minister signalled her intention to explore the idea of encouraging companies to provide a stipend to remote workers to cover the costs associated with using the Connected Hubs platform. More than 10,000 people will have registered with the Connected Hubs network by the end of the year. Northern Ireland Annual Business Inquiry Statistics 2021 released The Northern Ireland Statistics and Research Agency (NISRA) this week released headline results from its 2021 Northern Ireland Annual Business Inquiry survey. Outlining how the economy experienced “higher than usual growth” year on year between 2020 and 2021, the NISRA noted how the major economic impact of Covid-19 restrictions during 2020 should be borne in mind when assessing the 2021 figures. Some of the key findings reported include: Total aGVA was estimated to be worth £30.6 billion at basic prices in 2021 - representing a rise of 19.4 percent (£5.0 billion) compared to 2020. Turnover for NI businesses increased by 13.6 percent between 2020 and 2021 to £77.1 billion, while the cost of purchases of goods, services and energy increased by 10.5 percent to £48.7 billion over the same period. The key driver of aGVA growth was in the NI Non-Financial Services sector which increased by £1.8 billion (17.9 percent) between 2020 and 2021.  The majority of aGVA growth in this sector is attributable to the Transport and Storage section which increased by £581 million (39.4 percent). Retail and Wholesale trade within the Distribution sector recorded aGVA growth of £868 million (14.4 percent) over the period in question. aGVA in the Production sector increased by £1.1 billion (15.5 percent) from 2020 to 2021. The key driver in this was the Manufacturing section, which recorded aGVA growth of £891 million (18.2 percent). There was also an increase in aGVA in the Construction sector of £1.2 billion (47.5 percent) between 2020 and 2021. Northern Ireland Labour Force Survey – Young People Not in Education, Employment or Training (NEET) In its latest batch of statistics derived from its quarterly Labour Force Survey, the NISRA estimates that there were approximately 17,000 young people aged 16 to 24 years in Northern Ireland who were not in education, employment or training (NEET) in the period July to September 2022. This was equivalent of 8.8 percent of all those aged 16 to 24 years in NI. According to the survey, the NEET rate among males aged 16 to 24 was 8.3percent and among females was 9.2 percent in July to September 2022 while the number who were NEET increased from the previous quarter by 2,000 and decreased by 7,000 over the year. In July to September 2022 there were an estimated 11,000 young people aged 16 to 24 years who were not in education, employment or training and who were not looking for work and/or not available to start work (economically inactive). The remainder of those who were not in education, employment or training were looking for work in the previous four weeks and available to start within the next two weeks (unemployed).  Court of Justice of the EU rules public beneficial ownership registers ‘invalid’ In a significant judgment issued this week, the Court of Justice of the EU (CJEU) held that the provision of the anti-money-laundering directive whereby EU Member States must ensure that the information on the beneficial ownership of corporate and other legal entities incorporated within their territory is accessible in all cases to any member of the general public is invalid. According to the Court, the general public’s access to information on beneficial ownership constitutes a serious interference with the fundamental rights to respect for private life and to the protection of personal data as enshrined in Articles 7 and 8 of the EU Charter of Fundamental Rights. On foot of the judgment, both Luxembourg and the Netherlands on Wednesday closed their public beneficial ownership registers. The CJEU this week issued a press release on the content of its judgment. 

  In this week’s bulletin we bring you a final round-up from COP27, news of measures to address windfall gains in Ireland’s energy sector, a consultation on electricity storage, ISIF’s announcement of a €50m initiative to promote female-led investment firms and the fastest growing global ‘green jobs’. Also included is news from Northern Ireland’s Environmental Benchmark Survey, the UK Transition Plan Taskforce publication of its Disclosure Framework and Implementation guidance, and the usual articles, podcast and event recommendations. A round-up from COP27 - ‘A down-payment on climate justice’ The two-week long international climate summit concluded in Egypt on Sunday 20 November, with a final agreement, the ‘Sharm el-Sheikh Implementation Plan’ creating a loss and damage fund for countries vulnerable to the effects of climate change. Read a round-up of COP27 achievements here. Measures to address windfall gains in Ireland’s energy sector Measures are to be introduced to address windfall gains in the energy sector, it was announced this week. Through the implementation of Council Regulation (EU) 2022/1854, the Irish Government is to place a cap on all market revenues of non-gas electricity generators, with excess revenues collected and used to support electricity consumers. Proceeds from the cap on market revenues are expected to be collected in 2023, with proceeds from the temporary solidarity contribution to be collected in 2023 and 2024. Consultation on electricity storage policy for Ireland The Department of the Environment, Climate and Communications has opened a consultation to gather the views of interested parties to inform the development of an electricity storage policy for Ireland. The consultation is part of a suite of measures being undertaken by the Government to support the delivery of Ireland’s renewable energy targets and Ireland’s security of supply. Closing date for submissions is 5.30pm on Friday, 27 January 2023, and full details can be found here. ISIF announces €50m initiative to promote female-led investment firms The Ireland Strategic Investment Fund (ISIF), which is managed and controlled by the National Treasury Management Agency (NTMA), has announced its ambition to invest a minimum of €50 million over the next two years through private equity firms that are majority-owned by women. By establishing an ambition for investing in female-led investment opportunities, ISIF is seeking to demonstrate its commitment to addressing gender inequality and promoting greater diversity at senior levels – both within ISIF and in the companies and funds in which it invests. IFAC warns of need to properly cost climate change measures Ireland’s budgetary watchdog the Irish Fiscal Advisory Council (IFAC) has warned that the expected costs of climate change and other policy initiatives need to be properly costed and factored into long-term risks to public finance. The report, Fiscal Assessment Report, November 2022, which published this week, warns that reducing greenhouse gas emissions ­- urgently required to mitigate dangerous climate change - will potentially lead to sizeable costs which have not yet been determined. Irish Government’s funding programme for social inclusion, community energy, and social enterprise projects Minister for Community Development and Charities, Joe O’Brien, T.D., has announced over €44 million in 2013 for the Social Inclusion and Community Activity Programme (SICAP), which supports communities and individuals to engage with relevant stakeholders in identifying and addressing social exclusion and equality, developing the capacity of Local Community Groups and creating more sustainable communities.   Other funding announced included a new €10 million fund – the Community Support Fund – to support thousands of local community and voluntary groups with their energy bills, and up to €1.5 million in funding for 34 Social Enterprise projects nationwide under the Scaling Up Fund. Sustainability webinar from Chartered Accountants Ireland Ulster Society – 28 November   Chartered Accountants Ireland Ulster Society is holding a webinar on 28 November 12.30-2.00pm looking at 'The Sustainability Journey - Responsibilities, Strategy and Reporting'. The line-up of expert speakers include Keith Scott (NI Water), Derarca Dennis (EY), Shane O'Reilly (KPGM Sustainable Futures) and David Smith (Kilwaughter Minerals Ltd), who will address the issue of sustainability, how businesses are shaping a sustainability strategy, delivering operational change and meeting their reporting obligations. This webinar will provide a great overview of the challenge, and some first-hand case studies of businesses who are taking significant steps on the sustainability journey.    UK Transition Plan Taskforce publishes Disclosure Framework and Implementation guidance The UK’s Transition Plan Taskforce (TPT) has published its Disclosure Framework and accompanying Implementation Guidance, launching a ‘Sandbox’ for companies and financial institutions to test implementation. Launched by  HM Treasury in April 2022, the TPT has a two-year mandate to develop the gold standard for private sector climate transition plans in the UK. It will inform and build on international disclosure standards. The UK Government and the Financial Conduct Authority are actively involved and will draw on the TPT’s outputs to strengthen disclosure requirements across the UK economy. The Disclosure Framework and Implementation Guidance are open for public consultation until 28 February 2023. IPCC factsheets released Temperatures will rise in all European areas, alongside the frequency and intensity of hot extremes, including marine heatwaves, it was reported in factsheets produced by the Intergovernmental Panel on Climate Change (IPCC), the United Nations body for assessing the science related to climate change.  Other high-level key messages noted in the factsheet for Europe included sea-level rise in all European areas except the Baltic Sea, and an increase in the intensity and frequency of extreme sea-level events, leading to more coastal flooding. There are factsheets for regions and for specific sectors, from agriculture to water resources management.   Compliance manager fastest growing ‘green job’ LinkedIn Economic Graph has published a new report into the skills needed for the world’s economies to address the threat of climate change. The Global Green Skills Report 2022 provides new data on green skills and jobs from all across the world. Among the fastest growing green jobs identified between 2016 and 2021 is ‘Sustainability Manager’, which saw an annual growth of 30 percent, and ‘Compliance Manager’ which grew by 19 percent. From our colleagues in Professional Accounting EFRAG submitted first set of draft European Sustainability Reporting Standards (ESRS) to the European Commission. Accountancy Europe published some FAQs on key changes that Corporate Sustainability Reporting Directive (CSRD) will bring. The UK Financial Conduct Authority announced the formation of a group to develop a Code of Conduct for ESG data and ratings providers. The Association for Financial Markets in Europe (AFME) in collaboration with EY published ‘ESG and the Role of Compliance’ on how compliance functions can support firms managing regulatory ESG-related risks.  Resources Podcast: The Director General of the Environmental Protection Agency, Laura Burke, speaks to Daniel Murray (5 Degrees of Change) Tool: Climate TRACE Coalition is new independent inventory of greenhouse gas emissions. Launched at COP27, Trace combines satellite data and AI to show the facility-level carbon and methane emissions of over 70,000 sites around the world, including companies in China, the United States and India. Article: SustainabilityWorks – Scaling the Solution  Upcoming events Webinar - Chartered Accountants Ireland Ulster Society - The Sustainability Journey - Responsibilities, Strategy and Reporting' (28 November)   Biodiversity COP15 Part 2, 7-19 December You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

  The two-week long international climate summit has at last concluded in Egypt, with the gavel going down on a final agreement  on Sunday, 20 November 2022. The ‘Sharm el-Sheikh Implementation Plan’ creates a loss and damage fund for countries vulnerable to the effects of climate change.  Seen as an important win for climate justice, the plan was described as a landmark moment in global climate politics, one that acknowledges that the world’s richer countries – and biggest carbon emitters – are responsible to the developing world for the harm caused by global warming. Speaking about the agreement,  Ireland’s Minister for Transport, the Environment, Climate and Communications, Eamon Ryan, TD, who led the loss and damage negotiations for the EU, admitted that while the outcome was not perfect, it was both historic and progressive: “This is not perfect. The EU would have liked it to have gone further and faster. However, what makes this a good deal is that it is an agreed deal. It is a signal of trust between the 198 parties to the UNFCCC that we are serious about climate change and that we are serious about protecting the most vulnerable countries and communities.” The wording in the agreement is that countries will “establish new funding arrangements for assisting developing countries that are particularly vulnerable to the adverse effects of climate change, in responding to loss and damage”. A transnational committee with representatives from over 24 countries will be established to decide which countries are vulnerable, where the money is to come from (i.e. which countries, and which sources - existing funding arrangements like debt relief or ‘innovative sources’ like taxes on fossil fuels). The committee, which have a co-chair from a developing country and a co-chair from a developed country, will report back at COP28, and the Santiago Network will provide technical assistance on how loss and damage can be addressed. “We have struggled for 30 years on this path and today, in Sharm El-Sheikh, this journey has achieved its first positive milestone,” said Pakistan Climate Minister Sherry Rehman. “The establishment of a fund is not about dispensing charity. It is clearly a down-payment on the longer investment in our joint futures.” Pakistan suffered monsoon flooding in 2022 that left more than 1,700 dead and caused at least $30 billion in losses. The disaster prompted Pakistan’s Prime Minister Shehbaz Sharif to warn world leaders at the UN General Assembly in September 2022 that “what happened in Pakistan will not stay in Pakistan,” a stark acknowledgement that climate change will not spare other countries the sort of disaster that left up to one third of his country underwater and millions of its citizens at risk from water-borne diseases. Although attempts at a row-back of commitments made at Glasgow at COP26 last year were resisted, a phase down of fossil fuels was not included in the agreement, much less a ‘phase out’, as had been called for. No new targets on emissions reduction targets were introduced in the agreement. Nor did the text include any references to IMF relief to fund carbon-reduction projects to help fund the $4 trillion required for investment in renewable energy annually until 2030, or the $5.6 trillion needed by developing countries to meet their climate goals, or any credible roadmap to double adaptation finance.  The latter would require changing the business models of multilateral development banks and international financial institutions, according to UN secretary general António Guterres. “They must accept more risk and systematically leverage private finance for developing countries at reasonable costs.” However, the agreement included the statement “[The world’s nations] call on the shareholders of multilateral development banks (MDBs) and international financial institutions to reform practices and priorities, align and scale up funding ... and encourage MDBs to define a new vision that [is] fit for the purpose of addressing the global climate emergency.” The agreement also created a two-tier carbon market, which has drawn criticism from campaigners who accuse it of creating a risk of greenwashing by countries wishing to purchase credits to fulfil net zero pledges but without making any substantial reductions to their own emissions. Further criticism centres around the fact that governments can designate as ‘confidential’ any information about carbon trades between countries. The agreement also made official that a decision on a new climate finance goal will be delayed until 2024. Rich countries have delayed delivering the $100 billion promised by 2020 to help developing countries reduce emissions and adapt to the effects of climate change.   Countries agreed to develop a work programme on the global goal of adaptation set out in the Paris Agreement. This goal specified enhancing capacity, strengthening resilience and reducing vulnerability to climate change and ensuring an adequate adaptation response. However, there was concern felt at the low levels of finance available for adaptation. Round-Up of COP27 Achievements High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities: launched first report, Integrity Matters: Net Zero Commitments by Businesses, Financial Institutions, Cities and Regions: focusing on greenwashing and weak net-zero pledges; roadmap to bring integrity to net-zero commitments by industry, financial institutions, cities and regions and to support a global, equitable transition to a sustainable future.   CDP (formerly the Carbon Disclosure Project) the not-for-profit which runs the global environmental disclosure platform for corporations, will incorporate the International Sustainability Standard Board’s (ISSB) IFRS S2 Climate-related Disclosures Standard [IFRS S2] into its global environmental disclosure platform. This is a major step towards delivering a comprehensive global baseline for capital markets through the adoption of ISSB standards.   Executive Action Plan for the Early Warnings for All initiative: calls for initial new targeted investments of $3.1 billion between 2023 and 2027, equivalent to a cost of just 50 cents per person per year.   Climate TRACE Coalition: new independent inventory of greenhouse gas emissions, combining satellite data and AI to show the facility-level carbon and methane emissions of over 70,000 sites around the world, including companies in China, the United States and India.   The Breakthrough Agenda: a ‘master plan’ to accelerate the decarbonization of five major sectors – power, road transport, steel, hydrogen, and agriculture – through 25 new collaborative actions to be delivered by COP28.   Food and Agriculture for Sustainable Transformation initiative or FAST: to improve the quantity and quality of climate finance contributions to transform agriculture and food systems by 2030. This was the first COP to have a dedicated day for Agriculture, which contributes to a third of greenhouse emissions and should be a crucial part of the solution. The Sharm El-Sheikh Adaptation Agenda: outlines 30 Adaptation outcomes to enhance resilience for 4 billion people living in the most climate vulnerable communities by 2030.   Action on Water Adaptation and Resilience Initiative (AWARe): an initiative that will champion inclusive cooperation to address water-related challenges and solutions across climate change adaptation.   African Carbon Market Initiative (ACMI): aims to support the growth of Africa’s voluntary carbon markets and create jobs in Africa.   The Insurance Adaptation Acceleration Campaign: part of the Race to Resilience, this is a campaign to an effort to mobilise 3,000 insurance companies (equal to 50 percent of the market) by COP28 in 2023.   The Global Renewables Alliance: an alliance to help accelerate the uptake of renewables globally by industry bodies and associations representing key low-carbon technologies such as hydrogen, energy storage, wind and solar.   The First Movers Coalition (FMC) Cement & Concrete Commitment: a collection of global companies committing $12bn to decarbonize the heavy industry and long-distance transport sectors. What’s next? COP15 Part 2 will take place 7-19 December. At this COP – officially titled Conference of the Parties (COP 15) to the Convention on Biological Diversity (CBD) – the parties will review the achievement and delivery of the CBD’s Strategic Plan for Biodiversity 2011-2020. Articles of interest COP27 closes with deal on loss and damage: ‘A step towards justice’, says UN chief (UN News)   What was decided at Cop27 climate talks in Sharm el-Sheikh? (Climate Home News)   UN Adopts Historic Pact on Payments for Climate Damages (Bloomberg)   Cop27: Deal reached to set up fund for developing countries hit by climate crisis (Irish Times)   Cop27 scores on cutting carbon and aiding climate-vulnerable states (Irish Times)   You can find all our COP27 updates, information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

  The two-week long international climate summit was due to end on Friday 18 2022, but will continue on Saturday November 19, to allow delegates extra time to negotiate on divisive aspects of the draft agreement – greenhouse gas emissions and loss and damage. The draft agreement calls on the World Bank and other multilateral development banks “to reform their practices and priorities”, align their spending with climate goals and “significantly increase climate ambition using the breadth of their policy and financial instruments for greater results”. It also calls for $4 trillion of annual investment in renewable energy by 2030, with an aggregate $5.6tn in additional funding to enable developing countries to meet their climate-related goals this decade. Speaking about the draft decision, Laurence Tubiana, chief executive officer of the European Climate Foundation, reportedly commented: “The moment is right. Climate impacts are beginning to be understood as a macroeconomic risk.” The draft text also describes a new finance goal for November 2024 to provide the $100 billion annual in climate-related assistance to vulnerable countries, acknowledging that “substantive progress” is still needed for this ambition to be realised. While most attention is on the intergovernmental negotiations on the draft agreement, other initiatives have been launched including four ‘solution-cantered’ initiatives for Africa: Friends of Greening National Investment Plans in Africa and Developing Countries initiative: aims at factoring in the impact of climate change when designing economic policies, quantifying mitigation and adaptation efforts, identifying the gaps and support needed, and proposing a set of essential guidelines, criteria, and policy advice, to expedite the implementation of the UNFCCC, Paris Agreement and the NDCs.   Low Carbon Transport for Urban Sustainability (LOTUS) initiative: aims to activate systemic change to improve and decarbonize the urban mobility landscape, and will focus on improving access to low carbon and resilient urban mobility solutions and strengthening the foundational enablers of change as the first-order priorities.   Sustainable Urban Resilience for the next Generation (SURGe) initiative: aims to reduce urban greenhouse gas emissions, adapt urban systems to climate change, and build urban system resilience. The initiative will track buildings and housing, urban water, urban mobility, urban waste and consumption, and urban energy.   Global Waste Initiative 50 by 2050: aims to holistically address all solid waste types and contribute to an ambitious target at the scale of the African continent with a view to treating and recycling at least 50 percent of the solid waste produced in Africa by 2050.   Article of interest Summit President Says Talks to Last Until Saturday (Bloomberg)   The key points from COP27 (The Financial Times)   You can find all our COP27 updates, information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

  Solutions Day at COP27 was the  last of the thematic days at the two-week long international climate summit. The day aimed to bring together government representatives, businesses and innovators; however, the closing of Solutions Day on Thursday 17 November Cop27 seemed to present more problems that solutions. With the publication of a draft climate deal, concerns rose over the reaching of a final agreement. The draft contained no details of the critical issue of a fund for loss and damage, nor did it call for a phasing down of all fossil fuels to build on the inclusion of the wording from last year’s COP in Glasgow which introduced ‘phasing down’ of coal. Irish Minister for Transport, Environment, Climate and Communications, Eamon Ryan, is leading loss and damage negotiations for the EU. Commenting, Minister Ryan stated: “We’re serious about providing the greatest support for particularly the most vulnerable countries. The key task is to turn that intent into a common text that people can rally behind.”   With the summit due to close on Friday 18 November, UN Secretary-General António Guterres has urged governments to ‘act – and act quickly’ to overcome their differences and deliver meaningful results. Elsewhere at COP27, the UN Climate Change High-Level Champions held their closing event ‘COP27 Action Agenda: Progress & Priorities’, at which they focused on accountability, fairness, and an assessment of non-State progress at COP27. The Champions wrapped up a two-week programme of over 50 events, including the launch of the Sharm-El-Sheikh Adaptation Agenda, a comprehensive two-year Glasgow–Sharm el-Sheikh work programme on adaptation (2022-2023). It also included a number of major African-led initiatives to cut emissions and build climate resilience, and significant work on the mobilisation of finance. Ireland’s former President, Mary Robinson, Chair of The Elders, was among the keynote speakers. Article of interest   Getting rid of fossil fuels at a climate summit is harder than you’d think (The Guardian)   Cop27 deadlocked over loss and damage issue with developing countries digging in (The Irish Times)   Eamon Ryan appointed lead EU negotiator on crunch Cop27 climate loss and damage issue (The Irish Independent)   You can find all our COP27 updates, information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

  In this week’s Public Policy bulletin, read about the Irish Government’s introduction of the National Living Wage as well as the constitutional challenge upheld by the Supreme Court to the ratification of the EU-Canada Trade deal (CETA). We also take a look at the Fiscal Advisory Council’s assessment of the proposals of the Commission on Tax and Welfare as well as the latest Northern Ireland Labour Market Report and the European Commission’s Autumn 2022 Economic Forecast. Tánaiste announces introduction of National Living Wage Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar, this week announced the Government’s introduction of a national living wage for employees. The national living wage will be set at 60 percent of hourly median wages as recommended by the Low Pay Commission Report on the Living Wage.  Under the Government’s plans, the living wage will be introduced over a four-year period and will be in place by 2026, at which point it will replace the National Minimum Wage. The first step towards reaching a living wage will see the implementation of an 80c increase in the National Minimum Wage from 1 January 2023 to €11.30 per hour. This will be followed by gradual increases to the National Minimum Wage until it reaches 60 percent of hourly median earnings. By 2023, it is estimated that 60 percent of median earnings would equate to approximately €13.10 per hour. Supreme Court rules ratification of Comprehensive Economic Trade Agreement (CETA) between Ireland and Canada unconstitutional In a significant judgment, the Supreme Court last week ruled in favour of a constitutional challenge brought by Green Party TD Patrick Costello against the Government’s plans to ratify the EU–Canada Comprehensive Economic Trade Agreement (CETA). In a majority ruling of 4–3, the court held that the Constitution of Ireland precludes the government and the Dáil from ratifying CETA as Irish law now stands. Originally agreed between Canada and the EU in 2016, the CETA is primarily a trade treaty designed to significantly reduce tariffs and increase trade between the two parties. Having provisionally come into force in 2017, all EU national parliaments are required to ratify the deal before it can take full effect. In its current form, CETA tribunal awards are “in substance converted almost automatically into judgments enforceable in this State”, depriving the High Court of its capacity to supervise such awards and ensure they comply with the Constitution and EU law, Mr Justice Gerard Hogan said. However, as Justice Hogan went on to note ““this fundamental constitutional objection would accordingly be cured” if certain amendments to the Arbitration Act are effected by the Oireachtas. Following the judgment, the Government reaffirmed its commitment to ratify CETA in full after allowing a period of time to reflect on the implications of the court’s decision.    Read a copy of the Supreme Court’s judgment here. Fiscal Advisory Council estimates additional €15 billion in Exchequer Revenues could be generated if Commission on Taxation proposals implemented Following the issue of the Report of The Commission on Taxation and Welfare in September, the Irish Fiscal Advisory Council has this month advised that, if implemented, the proposals of the Commission would raise an additional €15 billion in Exchequer revenues. In an Analytical Note assessing the potential impact of the Commission’s proposals, the Council’s “broad brush estimates suggest an increase in total revenues of around 5.3% of Gross National Income”. However, while the report of the Council notes that the Commission’s net revenue-raising proposals “offer one potential strategy” to address the challenges the State currently faces, the Council expressly “does not take a view on whether or not this is the right approach”. The report of the Commission set out a strategy for raising Exchequer revenues and contained 116 recommendations to this effect which are currently under consideration by the Government. Latest Northern Ireland Labour Market Report published This week, the Northern Ireland Statistics and Research Agency (NISRA) published its most recent Labour Market Report. According to the report, the number of employees receiving pay through HMRC PAYE in NI in October 2022 was 781,300, a 0.2 percent increase over the month and a 2.5 percent increase over the year. Earnings from the HMRC PAYE indicated that NI employees had a median monthly pay of £1,967 in October 2022, an increase of £10 (0.5 percent) over the month and an increase of £117 (6.3 percent) over the year. In addition, the report noted that October 2022 saw the second consecutive monthly increase in the claimant count. The seasonally adjusted number of people on the claimant count was 36,100 (3.8 percent of the workforce) – marking an increase of 1.4 percent from the previous month’s revised figure and still higher than the pre-pandemic count in March 2020 (by 21.1 percent). As also set out in the report, the Department for the Economy recorded 60 redundancies in October – bringing the annual total number of redundancies to 940, the lowest twelve-month total in the time series (since 2000). European Commission’s Autumn 2022 Forecast Ireland's GDP is expected to grow by 7.9 percent in 2022, then to moderate to 3.2 percent in 2023 and 3.1 percent in 2024 on the back of lower purchasing power and uncertainty weighing on investment, according to the European Commission’s Autumn 2022 Economic Forecast. Net exports, particularly of multinational corporations, are however expected to remain resilient and be the main driver of growth. Inflation is expected to peak at 8.3 percent in 2022 and to remain high at 6.0 percent in 2023 before eventually moderating to 2.8 percent by 2024. While the Forecast projects that most Member States will enter into recession during the last quarter of the year (due to the ongoing uncertain economic environment) momentum accrued in 2021 together with strong growth in the first half of this year are set to lift real GDP growth in 2022 as a whole to 3.3 percent in the EU (3.2 percent in the euro area) - well above the 2.7 percent originally projected in the Commission’s Summer Interim Forecast. While the Commission predicts inflation will continue to contract economic activity into the first quarter of 2023, growth is expected to return to Europe in spring. Digital Services Act: EU’s landmark rules for online platforms enter into force This week saw the launch of the EU’s new set of rules for a safer and more accountable online environment as provided for in the Digital Services Act (DSA). The DSA applies to all digital services that connect consumers to goods, services, or content including online marketplaces. One of the key purposes of the DSA is to increase protections for consumers transacting online. Under the provisions of the Act, all online intermediaries will have to comply with wide-ranging new transparency obligations to increase accountability and oversight with a special regime applying to platforms with more than 45 million users. However, smaller platforms and start-ups across the EU will benefit from a reduced set of reporting obligations and special exemptions from certain rules. Following the entry into force of the DSA this week, online platforms will have until 17 February 2023 to report the number of active end users on their websites to the Commission. Read the Commission’s press release here.                    

The European Financial Reporting Advisory Group (EFRAG) has approved the final version of the European Sustainability Reporting Standards (ESRS) at its meeting on 15 November, subject to editorial changes. Earlier this year, EFRAG launched a public consultation on the thirteen Exposure Drafts forming the ESRS. The consultation period, which ended on 8 August, received a large response from a broad range of stakeholders (including the Institute). Since August, EFRAG has considered these responses and made changes to the original draft standards. This has culminated in the approval of the final version of the standards by EFRAG on 15 November. The standards will now be sent to the European Commission to be considered for adoption. The standards have been updated based on stakeholders comments and feedback, with one of the key changes being the removal of the "rebuttable presumption" related to materiality which was contained in the original draft standards. The news of the finalisation of ESRS comes a week after the European Parliament adopted the Corporate Sustainability Reporting Directive (CSRD). The CSRD will now be considered by the European Council on 28 November, where it is expected to be signed into EU law. Following this, member states of the EU will be required to enact legislation locally to bring the requirements of CSRD into effect in their state. It is hoped that the ESRS and CSRD will help to ensure that companies report more transparently and consistently on their sustainability-related impacts, opportunities and risks and this is intended to be a significant update on the 2014 Non-Financial Reporting Directive. The rules of ESRS and CSRD are expected to apply for periods commencing on or after 1 January 2024 for larger companies, with the requirements being phased-in in subsequent years for smaller companies.

  In this week’s bulletin we bring you news of offshore wind auctions under the Renewable Energy Support Scheme, sustainability supports available for the tourism, community and voluntary sectors, and tax deductions for landlords for retrofitting. Also read about events at COP27, which draws to a close this weekend, and the usual news, resources and events.    COP27 Look back on the resources produced by Chartered Accountants Ireland on the two-week international climate summit which concludes today in Sharm El-Sheikh. COP27 which brought together countries from around the world to accelerate moves to tackle the climate crisis. Offshore wind auction under Renewable Electricity Support Scheme In what has been described as a seminal moment in the delivery of offshore wind in Ireland, the Irish Government has approved the Terms and Conditions of ORESS 1, the first auction for offshore wind under the Renewable Electricity Support Scheme. The offshore auction is expected to provide a route to market for up to 2.5GW of offshore renewable energy to the Irish grid, enough to power 2.5 million Irish homes with electricity. Final auction results will be published by June 2023, and at least three offshore energy auctions are currently planned for this decade. Energy supports announced for community and voluntary sector Minister for Rural and Community Development, Heather Humphreys TD, and Minister of State, Joe O’Brien TD, have launched a new €10 million fund to provide once-off support to community and voluntary organisations which fall outside the parameters of other energy support schemes being delivered by Government (such as the Temporary Business Energy Support Scheme (TBESS)).  The scheme will open for applications on Monday 21 November and close on Friday 2 December 2022 with payments expected to commence before the end of this year and into early 2023. Full scheme details are now available here. Tourism businesses urged to engage with sustainability supports Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media Catherine Martin, TD, has advised businesses in the tourism sector to engage with Government supports to make their businesses more sustainable. Speaking at Fáilte Ireland's first national conference on driving climate action in tourism businesses at Croke Park this week, Minister Martin referenced the sectoral emissions ceilings that have been fixed for each sector, including the tourism sector, and the supports available to businesses to help with decarbonisation projects. In addition to the €3 million additional funding in Budget 2023 to allow Fáilte Ireland to continue its work in the area of sustainability, the Minister also pointed to Fáilte Ireland’s new Climate Action Roadmap and the Government’s ClimateToolkit4Business. Landlords to get tax deduction for retrofitting The Minister for Finance, Paschal Donohoe TD, has announced a new tax deduction for small-scale landlords who undertake retrofitting works while the tenant remains in situ. The measure will provide for a tax deduction of up to €10,000 per rented residential property against Case V rental income, for certain retrofitting expenses, for a maximum of two rental properties. Read more from our Tax Team. UK and EU sign joint declaration on energy The United Kingdom and the EU are among the signatories to a joint declaration from energy importers and exporters on reducing GHG from fossil fuels, joining the United States, Japan, Canada, Norway and Singapore.” In the pledge, the countries committed to support domestic and international action to achieve emissions reductions across the fossil energy value chain, such as adopting policies and measures to achieve rapid and sustained reductions in methane and CO2 emissions, supporting robust measurement, monitoring, reporting, verification, and mobilizing technical assistance and financing for methane and CO2 mitigation in the fossil energy sector. The  EU and Egypt have since taken the further step of establishing a strategic partnership on renewable hydrogen. Fit for 57? The European Commission’s Vice President Frans Timmermans has told delegates at COP27 that the European Union will be able to cut greenhouse gas emissions by 57 percent from 1990 levels by 2030,instead of the 55 percent originally planned. There is some criticism, however, that the increase in ambition does not represent a much-needed reduction in emissions, but is a reflection of the EU’s decision to count ‘carbon sinks’, which to date have not been factored into the carbon accounting. Reaching the target will reportedly require the implementation of new laws proposed ahead of COP27, including a 2035 ban on selling new fossil fuel cars. The Commission also recently proposed a new temporary emergency regulation to accelerate the deployment of renewable energy sources. From our Professional Accountancy Team The European Financial Reporting Advisory Group (EFRAG) has approved the final version of the European Sustainability Reporting Standards (ESRS) at its meeting on 15 November, subject to editorial changes. Read more here. Resources A new tool, the Doughnut Design Tool for Business has been created to help businesses engage with ‘Doughnut Economics’. This is an economic mindset underpinned by the concept of social and planetary boundaries. The tool, which helps businesses run facilitated workshops, is accompanied by a paper, What Doughnut Economics Means for Business. The paper contains background context and further detail on the core concepts as well as additional examples of business design. Articles Global CO2 emissions from fossil fuels hit a record high in 2022 (Carbon Brief) The UN Environment Program intends to launch a public database of global methane leaks detected by space satellites (Reuters) Fantasy football: what a carbon-neutral world cup might look like? (Bloomberg) The subtle danger climate change poses to ‘highly vulnerable’ Ireland (The Irish Times) ECB's Panetta says green transition may help cut inflation (Reuters) Counting the rising costs of climate (Reuters) Upcoming events Institute of Chartered Accountant England & Wales, ICAEW Climate Summit, 21-25 November 2022 (Virtual). With growing climate concerns an ever-present consideration for companies around the world, what can – and should – finance professionals be doing to support efforts towards net zero, sustainability and green finance? This week of virtual sessions will join experts and professionals from across sectors to engage on this biggest of issues. Reuters, Sustainability Reporting and Communications Europe,Nov 22-23 November 2022, London "Rethinking our economic models, focused on social & circular" - Kate Van Der Merwe, Chris Gordon, & Claire Downey - The Dublin City Centre Business Network Group’s November 2022 Breakfast Briefing is taking place on Friday, 25th November from 7:30am- 8.45am (one hour of CPD) in Chartered Accountants House, Pearse Street, Dublin 2. Contact membersservices@charteredaccountants.ie to book your place. Biodiversity COP15 Part 2, 7-19 December You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our onlineSustainability Centre.  

  16 November was Biodiversity Day at COP27, and headline news was the arrival of Brazilian President-elect Luiz Inacio Lula da Silva (Lula) at the summit. In his speech, President-elect Lula said that climate change will have the highest profile in his government, and that he will prioritize efforts to fight deforestation in the Amazon rainforest. In a separate statement the architects of the Paris Agreement urged leaders to step up action to address the accelerating loss of nature by delivering an ambitious and transformative global biodiversity agreement at COP15, with the necessary finance and technical support to drive immediate action on the ground. The theme of Biodiversity Day echoes an event from Finance Day, which took place during the first week of the international climate summit. The International Finance Corporation (IFC) issued the world's first guidance to help investors, financiers, companies, and governments identify investments that protect and rehabilitate biodiversity and ecosystems. The Biodiversity Finance Reference Guide is a market framework for biodiversity finance, a fast-growing domain of green finance that aims to support activities that conserve and restore biodiversity and ecosystem services. The guide was described by Makhtar Diop, IFC's Managing Director as “a compass for businesses and investors seeking to align their activities with the goals of sustainable growth and a healthy planet.” Look beyond COP27, the impacts of climate change on biodiversity is also the topic of another COP, COP15 Part 2, on 7-19 December. At this COP – officially titled Conference of the Parties (COP 15) to the Convention on Biological Diversity (CBD) – the parties will review the achievement and delivery of the CBD’s Strategic Plan for Biodiversity 2011-2020. Did you know about…biodiversity and accounting for nature? Biodiversity is the variety of life on earth on which our societies and economies depend on it. It is rapidly rising up the corporate agenda as more and more companies understand the need to protect it. Every business relies on biodiversity, which, for businesses, means everything from clean air and water, fuel, food, raw materials, minerals, fibers, pollination of crops, climate regulation for a stable climate, and much more. For example, agribusiness relies on the diversity of wild relatives of major food crops, as a resource to ensure crop resistance to disease and pests. Business also rely on biodiversity for the wellbeing of their staff, their consumers, in their own operations and along their supply chains. Biodiversity is increasing in importance to business, and businesses will be expected to know about biodiversity action and to engage with it. They are also coming under increasing pressure to support protection of biodiversity. Biodiversity and Chartered Accountants Ireland On March 3, 2022, Chartered Accountants Ireland joined a profession-wide commitment to reverse nature loss. Working together as part of the Global Accounting Alliance (GAA), the CEOs of 10 of the world’s leading accountancy institutes signed the call to action ‘Nature is Everyone’s Business’ to signal the important role the profession plays in this crisis. You can find out more about biodiversity and natural capital and resources for accountants at the Chartered Accountants Ireland website’s Biodiversity - Accounting for Nature   You can find all our COP27 updates, information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.