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European Commissioner Mairead McGuinness speaks to Neil Stokes, Tax Associate at PwC, about the European economy, the possibilities for a digital euro and sustainable finance What is your outlook for the European economy in 2023, given the backdrop of the continued war in Ukraine, monetary tightening and the spectre of a recession looming large? The past few years have been a time of immense change.  While we are not yet completely out of the woods with the pandemic, people are back at work, and the threat to global health has decreased.  However, we find ourselves in a very dark time for Europe, and indeed the world, with the Russian invasion of Ukraine on 24 February 2022. The terrible impact has been, first and foremost, on Ukraine and its people. But there are knock-on effects, including dramatic volatility in energy prices, requiring Member States to take action to help the most vulnerable families and businesses.  The EU is among the most exposed advanced economies due to our proximity to the war and our past reliance on gas imports from Russia.  Despite these headwinds, the EU economy has shown remarkable resilience. We have thus far avoided recession and energy shortages.  Political unity of EU Member States is paying off. The Commission worked hard to counteract the worst impacts of the war, just as it acted to avoid the worst impacts of the global pandemic.   We need the same collective effort for the year ahead to make progress on the transition to net zero and maintain the competitiveness of European businesses.  We are also strong in our solidarity with Ukraine. What is your outlook in the medium to long term for cryptocurrencies/decentralised finance, given the recent collapse of FTX? Digitalisation is a game-changer. We can all see that. It’s causing deep structural changes and creating new opportunities and challenges in the financial sector.  I can’t say what will happen with crypto in the long term, but the EU is ahead of the curve in acting to regulate these relatively new developments.  The FTX collapse is evidence that all that glitters is not gold, and it is a cold shower for ‘believers’ in crypto – who see it as the future of finance.  Our approach to cryptocurrency is to address the clear risks and shortcomings while still enabling innovation to flourish.  We will soon have the Markets in Crypto-Assets regulation in force, which will bring crypto into the regulatory and supervisory fold.  We also have a new pilot regime for Distributed Ledger Technology, or DLT, which is the technology that underpins crypto. This pilot will allow financial companies to experiment with DLT for the trading and settlement of ‘tokenised’ financial instruments in a safe environment and let regulators learn from the experience.  What do you see as the main advantages/disadvantages of cryptocurrencies from a consumer standpoint? Do you see them being used as a widespread medium of exchange in the near future? Crypto comes with risks, as we’ve seen all too clearly.  Some consumers invested in crypto, lured by a false promise of value going up and up and up.  Crypto is a risky investment and subject to volatility. What goes up can also come down – and very dramatically, as some investors have experienced.  Others have been victims of scams or hacks that are all too frequent in what’s still a largely lawless ‘Wild West’ of crypto.  There are advantages to blockchain technology. It cuts out the middleman – removing the need for centralised processes and intermediaries. It can make transactions more efficient and transparent by recording key information in an unchangeable format, making it accessible to all market participants.  For instance, this could make payments cheaper, faster and safer. Blockchain technology also has the potential for the trading and settlement of securities. But those benefits cannot emerge in a Wild West scenario. So, we need regulation, and that’s what the EU is doing. What are your thoughts on the future of the digital euro and its interaction with the physical euro? First, a note on the process. It is the European Central Bank that will decide on whether to issue a digital euro or not. But a decision with such huge consequences for people, businesses and economies needs a strong democratic basis.  This year, the Commission will propose a legal framework to regulate the essential elements of a digital euro, and the European Parliament and Member States will discuss and shape this proposal. What should a digital euro look like if we decide to proceed? I always stress that the idea for the digital euro is that it will complement, not replace, cash.  We are witnessing a society becoming increasingly digital, and the pandemic accelerated this trend with the closure of bank branches and more transactions on mobile apps and online services.  A digital Central Bank euro would ensure that we maintain a public complement to private digital means of payment.  It could, for example, address some of the shortcomings in current options, like enabling offline payments – serving people without access to the internet or in remote areas.  It could be an open solution, unlike many private options that often rely on both sender and receiver using the same closed interface.  It could also be useful for payment providers, especially national providers that want to expand into other countries – which is essential because we want public and private solutions to coexist.  We have to carefully consider the possible design: privacy and data protection are vital, but we also need to consider how we fight financial crime.  Commercial banks are wondering about the impact it would have on them – the investigative work of the European Central Bank is pointing to a digital euro primarily to be used as a means of payment, not a store of value – so it doesn’t create an incentive to move deposits away from commercial banks.  We’re also considering questions around who would distribute a digital euro, the costs involved and ensuring easy access to it.  The key point is that a digital euro would have to provide real added value. And – again – we would also make sure that people can access and use physical cash. There is a need for a public discussion about a potential digital euro, and our pending legislative proposal will allow for that discussion. What are the European Commission’s priorities on sustainable finance and how does the EU plan to finance the transition to a more sustainable economy? The ambition of the European Green Deal is high: Europe should become the first climate-neutral continent by 2050.  The cost of the transition cannot be funded by the public purse alone; we need every part of the economy and the financial system to play its part.  Overall, when it comes to sustainable finance, we are thinking both about how the financial sector is resilient against climate risks, and the contribution it can make to the transition.  The EU sustainable finance agenda is about transparency, so we have a number of tools relating to disclosure. Companies will disclose their transition plans, helping to refocus and track their efforts towards sustainability.  The key to becoming a more sustainable economy is to invest in the transition.  Our work on Capital Markets Union is important in providing the necessary private financing of the transition and allowing citizens to become more involved in capital markets, putting their money towards this more sustainable future.

  In this week’s Sustainability/ESG bulletin, read about Ireland’s first ever Clean Air Strategy and its new Climate Adaptation Strategy for Regional and Local Roads. Also covered is the upcoming  Northern Ireland Women in Business bootcamps, the Northern Ireland Environmental Benchmarking Survey 2023, an explainer from the European Parliament on ‘carbon leakage’, and updates from our colleagues in Tax, Practice Consulting and Accountancy Europe, as well as articles, webinar recordings and upcoming events. Government approves Ireland’s first ever Clean Air Strategy The Irish Government has approved Ireland’s first ever Clean Air Strategy. The strategy, which identifies and promotes government measures needed to reduce air pollution and promote cleaner ambient air, commits Ireland to achieving the new WHO (World Health Organisation) guideline values for air quality by 2040. Progress is to be measured against interim targets by 2026 and 2030. Air pollution in Ireland is currently estimated to cause 1,300-1,400 premature deaths every year, ten times the number of road fatalities. Government publishes Climate Adaptation Strategy for Regional and Local Roads The Department of Transport has published its Climate Adaptation Strategy for Regional and Local Roads. The strategy document provides Local Authorities with a series of measures to ensure that roads are protected from expected climate change into the future. These measures include identifying and mapping areas most susceptible to climate-related impacts, updating existing asset management guidance for climate adaptation, developing new asset management guidance, and implementing a monitoring and review process to ensure the effectiveness of climate adaptation actions. EPA announces increased funding of €16m for new environmental and climate research The Environmental Protection Agency (EPA) has announced up to €16 million in funding for new research projects across the areas of nature-based solutions that can benefit the environment and society; advancing climate science in an Irish context; identifying effective options to adapt to climate change; the use data of and digitalisation for environmental protection;  and how society can be enabled in its transition to a sustainable future. Successful researchers will work closely with policy makers and other relevant stakeholders to ensure that the research is impactful and effectively informs environmental policy in Ireland.            Sustainability Reporting – what will it mean to you and your firm? Sustainability is probably the most important issue of our times. However, when it comes to sustainability reporting, your first questions may well be how and when does this affect you, your firm and your clients? The short answer is that sustainability reporting will directly affect a large proportion of members in practice, and sooner than they may think. Read more from Conal Kennedy, FCA, and Head of Practice Consulting with Chartered Accountants Ireland. Trade mission to promote Ireland’s wind energy capability Minister of State for Trade Promotion and Digital Transformation, Dara Calleary T.D. has led an Enterprise Ireland’s trade mission to Wind Europe, one of Europe's largest trade shows for the global wind industry, to launch and promote Ireland’s significant wind energy capability (Ireland’s west coast could reportedly generate enough wind energy to power the country in time and with the required technology). There is a significant shortage of capability globally in the offshore wind sector. As an island nation, this creates opportunities for Irish companies with relevant skill sets, products, and services. Also this week, Taoiseach Leo  Varadkar reportedly stated at a summit of maritime country leaders in Ostend, that Ireland “need[s] to make a giant leap when it comes to renewable energy, when it comes to offshore wind in particular.” Ireland's sea area is seven times its landmass; with abundant and reliable Atlantic wind, Ireland could become a powerhouse in the future. Approval for enhanced Temporary Business Energy Support Scheme (From our colleagues in the Tax Team) The Minister for Finance, Michael McGrath TD, has welcomed European Commission approval of the enhancements to the Temporary Business Energy Support Scheme (TBESS) announced in Finance Bill 2023. Read more about these enhancements here and updated Revenue guidelines here. DETE, Building Better Businesses Midlands Park Hotel, Portlaoise The Department of Enterprise, Trade and Employment DETE is organising a series of Building Better Business events across the country to help businesses navigate the green journey and boost business performance through digital transformation. The next Building Better Business event will be hosted on Friday, 26 May 2023, 8.30am – 1.30pm in the Kemmy Business School, University of Limerick. It is open to businesses based in Clare, Limerick and Tipperary. Register and find out more about the event. Northern Ireland Women in Business bootcamps As part of the 'Yes You Can: Imagine It' programme, Women in Business is running five full-day bootcamps for women who need support to develop their business idea to encourage change, confidence and communication as an entrepreneur. Each bootcamp will be hosted by two experienced facilitators, along with guest speakers from the local entrepreneurial community, and will take place across five different locations in Northern Ireland. The first bootcamp will take place in Craigavon, Tuesday 9 May 2023. Find out more here. Northern Ireland Environmental Benchmarking Survey 2023 opens The Northern Ireland Environmental Benchmarking Survey 2023 has opened, and is inviting participation from all organisations in any sector in Northern Ireland. Widely recognised as Northern Ireland’s principal environmental benchmarking exercise, the survey focuses on environmental management and performance in key areas, as well as the extent to which environmental business practices have been embedded within corporate strategies. Participants are also issued a gap analysis which provides valuable individual feedback on their submission. The survey can help businesses identify environmental impacts, measure progress to drive improvement, and raise awareness of the environment as an important, strategic, and competitive issue at board level. The deadline to complete the survey is Wednesday 28 June 2023. European Parliament publishes content on ‘carbon leakage’ According to the European Parliament press release, about 27 percent of global CO2 emissions from fuel combustion come from internationally traded goods. This is known as carbon leakage, the shifting of greenhouse gas emitting industries outside the EU to avoid tighter standards and is undermining Europe’s climate efforts as emissions from imports have continued to rise. The European Parliament have this week published an explainer on what carbon leakage means and the steps the EU is taking to prevent carbon leakage. These include as the proposed Carbon Border Adjustment Mechanism (CBAM) proposed under the Fit for 55 package of policy measures which the EU issued to deliver the European Climate Law. Technical Sustainability Accounting Updates (From our colleagues in Professional Accounting) The International Sustainability Standards Board (ISSB) will shortly be seeking feedback on its future priorities for the next two years. In May 2023, the ISSB plans to publish a request for information about its agenda priorities with a comment period of 120 days.  The European Single Electronic Format’s (ESEF) implementation has taught us that timely preparation and communication are the most important factors for the success of relevant IT projects. Now, EU Member States have started implementing the Corporate Sustainability Reporting Directive (CSRD) for transposition. Accountancy Europe is hosting a webinar on 16 May – ‘Towards digital corporate reporting with CSRD’ to explore this area.    The European Commission’s EU Green Week 2023 will take place from Saturday 3 June to Sunday 11 June 2023 under the overarching theme of the European Green Deal.  In the April 2023 issue of the ISSB podcast, ISSB Vice-Chair Sue Lloyd talks to Chair Emmanuel Faber about the latest developments and discussions from the board.  Updates from our colleagues in Accountancy Europe The European Parliament’s Legal Affairs (JURI) Committee adopted its final position on the Corporate Sustainability Due Diligence Directive (CSDDD) on 25 April. As a next step, the European Parliament is expected to vote on its mandate on 1 June, followed by negotiations with the Council.  The recent Global Reporting Initiative (GRI) analysis examines due diligence and its connection with sustainability reporting. The International Auditing and Assurance Standards Board (IAASB) confirmed its intention to advance the consultation on a new sustainability assurance standard International Standard on Sustainability Assurance (ISSA) 5000. IAASB hopes to gain broad and early input on the draft ISSA 5000 and have the final standard ready in 2024.  The International Organization of Securities Commissions (IOSCO) welcomed the initiative, and issued a report outlining key considerations for an effective global assurance framework on sustainability reporting. IOSCO also confirmed it will work on sustainability reporting but also on sustainability assurance standards. The International Accounting Standards Board (IASB) initiated a project to explore whether and how companies can provide better information about climate-related risks in their financial statements. The Taskforce on Nature-related Financial Disclosures (TNFD) issued its prototype (Beta Release) framework, which is open for public testing and feedback. TNFD framework will be published in September 2023 for market adoption. For more, subscribe to Accountancy Europe’s Sustainability Update Articles The Real Climate Job of the Future: Carbon Accountant(Bloomberg Business) What is inclusive hiring? (Accountancy Ireland) Reducing carbon emissions: EU targets and policies (European Parliament News) Local climate action plans offer an opportunity for place-based leadership (Irish Times) Yes, the climate crisis is raising your grocery bills (The Guardian) One in five cars sold in 2023 will be electric, says International Energy Agency (Financial Times) Watch Back - Equipping the public sector for sustainability action On Tuesday 4 April, three bodies: the International Public Sector Accounting Standards Board (IPSASB), which develops accounting standards and guidance for public sector entities, IFAC, and Accountancy Europe, co-hosted a briefing on public sector sustainability reporting in Brussels. The audience numbered some 750 professionals from over 100 countries. Attendees, including members of Chartered Accountants Ireland (Joan Curry, Institute Council Member and Board Member of IFAC) were reminded of the impact of public sector spending on GDP, and the overarching impact of public sector policies on sustainability. Watch the recording here.   Upcoming Events   Accountancy Europe - Join Accountancy Europe for the webinar Towards digital corporate reporting with CSRD  The European Single Electronic Format’s (ESEF) implementation has taught us that timely preparation and communication are the most important factors for the success of relevant IT projects. Now, EU Member States have started implementing the Corporate Sustainability Reporting Directive (CSRD) for transposition. This webinar will explore the role of different parties for an effective CSRD implementation, lessons learnt from ESEF, the interconnectivity between financial and sustainability information via digitalisation and current activities and plans of EU authorities for supporting digital sustainability reporting. 16 May, 14:00-16:00 CEST  Irish Environmental Network, National Biodiversity Week 2023 May 19-28th Business Post, ESG Summit, Croke Park, Dublin May 30 Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 3 May Following three sellout sittings, our Certificate in Sustainability Strategy, Risk and Reportingfor accountants is back again in May 2023. Over 8 weeks, you'll cover key reporting frameworks and metrics, and learn to address the ESG opportunities and challenges that organisations already face. Find out more   Member Survey We want to support our members in the rapidly-developing area of sustainability/ESG. Please complete this short survey (approx. three minutes) to help us understand your views and organisation’s sustainability profile. You can click the link or scan the QR to take part. Survey   Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountant now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting.   3rd or 4th Wednesday of every month Next : 24 May, 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would like to attend please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

In this week’s public policy bulletin we take a look at a new suite of proposals from the European Commission aimed at reforming overall economic governance in the Union. We also take a look at the latest GDP estimates from the CSO as well as a report from the OECD on workers wages. In addition, we review the latest Consumer Sentiment Index from the Irish League of Credit Unions as well as the March 2023 labour market statistics for Northern Ireland. European Commission proposes new economic governance rules This week the European Commission presented a series of legislative proposals designed to implement a comprehensive reform of the EU's current economic governance rules. The central objective of these proposals is to strengthen public debt sustainability and promote sustainable and inclusive growth in all Member States through reforms and investment. Amongst the measures introduced include the issue of country-specific “technical trajectories” by the Commission to individual Member States who have a government deficit above 3 percent of GDP or public debt above 60 percent of GDP. This trajectory will seek to ensure that debt is put on a plausibly downward path or stay at prudent levels. You can read the full suite of proposals issued by the Commission here. Ireland’s GDP falls 2.7 percent in first quarter of 2023 – CSO In a statistical release issued this week, the CSO reported that Gross Domestic Product (GDP) fell by an estimated 2.7 percent in Quarter 1 2023, when compared with Quarter 4 2022. Noting how the fall in GDP was largely driven by a drop in the industry sector in quarter 1 2023 (compared to the “very high levels” seen in the second half of 2022), GDP nonetheless stood 6.4 percent higher than the same period in 2022. You can read the full results of the findings here. Workers paying higher taxes as wages rise but face drop in real income as inflation bites – OECD report Taxes on labour increased in 2022 as rising nominal wages pushed workers into higher tax brackets and reduced their eligibility for tax credits and cash benefits, according to research published this week from the OECD. In its Taxing Wages 2023 report, the think tank also found that while nominal wages increased, high inflation across the OECD caused wages to decline in real terms, resulting in a “double blow” for workers. Moreover, according to the report, while effective tax rates have risen in a majority of OECD countries across a range of income levels and household types, 17 OECD countries automatically adjust personal income tax systems in line with inflation, while the remaining 21 do so on a discretionary basis.   Consumer sentiment at 13 month high – Irish League of Credit Unions   Irish consumer sentiment has improved significantly in April to its best level in 13 months according to the latest Consumer Sentiment Index from the Irish League of Credit Unions. According to the Index, the increase in confidence was driven by a clear drop in negative views on the economy and household finances. However, the report goes on to caution that this stronger sentiment largely seems to be the result of an easing in fears rather than any sense that conditions are improving markedly at present. Moreover, the report suggests that although fears of a full economic or financial meltdown may be fading, many consumers still face significant uncertainty and substantial financial strains. Latest labour market statistics for Northern Ireland released The latest labour market statistics for March 2023 have been released by the Northern Ireland Statistics and Research Agency. According to the findings, the number of employees receiving pay through HMRC PAYE in NI in March 2023 was 790,600, a 0.5 percent increase over the month and a 2.3 percent increase over the year. HMRC PAYE data indicated that NI employees had a median monthly pay of £2,110 in March 2023, an increase of £56 (2.7 percent) over the month and an increase of £177 (9.2 percent) over the year. In contrast to these improvements, the claimant count estimate increased by 2.3 percent over the month to March 2023 from the revised estimate for February 2023. The claimant count rate also increased slightly over the month, to 3.7 per cent, which was the first increase since September 2022.

Conal Kennedy writes: Sustainability is probably the most important issue of our times. However, when it comes to sustainability reporting, your first questions may well be how and when does this affect you, your firm and your clients? The short answer is that sustainability reporting will directly affect a large proportion of members in practice, and sooner than they may think. The Corporate Sustainability Reporting Directive (CSRD) has been passed by the European Union and it is in the process of being transposed into Irish legislation. It applies to a number of categories of entities, but of most immediate interest to readers of Practice Matters may be its application to large private Republic of Ireland registered companies, as defined by the Companies Act. Amongst a number of requirements, these must provide detailed information in electronic format in their annual management reports under CSRD for years commencing 1 January 2025 and thereafter. Furthermore, these companies will need to obtain independent assurance that the information is presented in compliance with the Directive. This assurance, which initially will be at the level of limited assurance, will be given and reported on only by properly authorised individuals and firms. A very large proportion of practices have at least one large company client. The impact of inflation in recent years has brought many more companies into the large category, and the future impacts on balance sheets of the proposed changes to lease accounting under FRS 102 will bring in some more marginal cases. These clients may well engage your firm for assistance with reporting under CSRD or the provision of assurance. This will mean applying the European Sustainability Reporting Standards (ESRS), and reporting on their application. These standards are currently published in draft, and are available at this link. As can be seen, the standards are substantial and detailed, and obtaining a working knowledge of them will require a large commitment of time and resources. Assurance standards will also be published in due course. Even if a firm has no large Republic of Ireland company clients, the firms may need to assist clients with the provision of “upstream and downstream” reporting of sustainability information to customer or supplier entities with broader reporting obligations under CSRD. You should determine what level of knowledge you need to obtain regarding sustainability reporting and assurance. I would suggest the following broad categorisation for the purposes of this article: Level 1 – This applies to firms who have no large Republic of Ireland company clients. Knowledge of upstream and downstream reporting requirements sufficient to assist clients to provide this information. Level 2 – Firms with large company clients. A general understanding of the reporting and assurance requirements, reporting dates, size limits as applicable to these clients. Level 3 – A level of knowledge sufficient to assist a large company to report correctly under CSRD. This will mean obtaining a detailed knowledge of the CSRD, the transposing legislation, and the final versions of the ESRSs. Level 4 – The knowledge set out at level 3 above, together with the knowledge, training and authorisation to provide assurance on sustainability reporting. Individuals who are statutory auditors (responsible individuals) on 1 January 2024 or are undergoing the approval process at that time and are approved before 1 January 2026 will be eligible to be grandfathered as assurance providers. Grandfathered sustainability assurance providers will be required to undertake sufficient and appropriate CPD to demonstrate competence. Once the grandfathering window has closed, subsequent applicants will need to follow a set procedure, which will include obtaining sufficient relevant training and practical experience and passing an examination. If your firm has one or more clients who are large companies likely to be affected by CSRD, some of the courses of action open to firms could be set out as follows: Key partners and staff within the firm will obtain the knowledge to provide assistance to relevant clients. One or more partners within the firm may obtain authorisation to provide independent assurance to relevant clients. The firm may recruit staff or partners who have a knowledge of sustainability reporting and assurance in order to provide these services. The firm may decide that it will not provide services related to sustainability reporting, and engages with its large company clients to determine how their needs will be met. The firm may decide that the needs of its large company clients are best served by others who are in a position to provide a full range of financial and sustainability reporting services, and engages with the clients to ensure a smooth transition to new service providers. All of the above courses of action require informed decisions, planning and implementation. A key consideration is the future availability of trained and suitably qualified people to provide sustainability related services. Many firms will see the potential to provide these services to their clients and will make their plans accordingly. Other firms are currently having difficulty in resourcing their current range of services, and this will influence their current and future courses of action. Firms in Northern Ireland, many of whom are registered as Republic of Ireland auditors, may be interested in providing sustainability reporting assistance services and assurance to Republic of Ireland companies. The acquisition of knowledge and training is essential to all firms to enable them to make effective decisions and to provide services to their clients as needed. The Institute is committed to supporting its members though its Technical, CPD and Specialist Qualification offerings. We have had a strong uptake of the Certificate in Sustainability Strategy, Risk and Reporting which first ran in 2022 and is continuing. We expect to launch a Sustainability Reporting Qualification with an assurance aspect in due course. Have a look also at our Sustainability Centre and look out also for our upcoming Sustainability Reporting Hub, which will be supplemented by a selection of Q&As to answer your key concerns. In Practice Consulting, we will ensure that you obtain the supports and toolkits that you need as practitioners. I have concentrated in this article on large private companies. Other entities affected include entities already subject to the Non-Financial Reporting Directive, Public Interest Entity SMEs, and ultimately small and medium sized companies which have a further three years to comply. These have different requirements and timelines, with which you should familiarise yourself if relevant. The important point is that this is an issue that cannot be ignored. If you have already put plans in place, I hope that this article was helpful to you. If your firm is affected by the issues dealt with in this article, and you have not started the planning process, then the message I have is that the Sustainability Reporting train has already left the station. Don’t underestimate the scale of this project and the benefits to be obtained from timely actions.

  In this week’s Sustainability/ESG bulletin, read about the proposed new National Demand Strategy for Ireland, key climate and deforestation laws approved by the European Parliament and sustainability in business competitions in Ireland. Also covered is the webinar on greenwashing from Chartered Accountants Worldwide, as well as articles, podcasts and upcoming events. New National Demand Management Strategy proposed to reduce congestion Minister for Transport and Minister for Environment, Climate and Communications Eamon Ryan TD  has brought a Memorandum of Information to Government on the development of a new National Demand Management Strategy. The strategy aims to reduce congestion in Ireland’s towns and cities, improve air quality and provide for more public transport, walking and cycling. The strategy will take a ‘Cities First’ approach, but will consider potential impacts on rural communities. Over the longer term the strategy aims to support a 20% reduction in vehicle kilometres travelled by 2030. Outlined as a key action in Climate Action Plan 2023, the strategy will take a year to complete and will involve widespread public consultation to engage and inform citizens. 27 April: Ask the Expert, How ‘green’ is ‘green electricity’? Economies urgently need to reach net-zero which means a huge decline in the use of coal, oil or gas in favour of green electricity. But how do we know if the electricity we’re buying is actually ‘green’? In a 15-minute interview, Killian Daly, General Manager with EnergyTag and global expert on science-based decarbonisation at scale, will answer your questions on electricity, what is truly 100% renewable electricity and what standards – if any – exist for renewable electricity. Register here for this webinar on 27 April 2023 12:45-13.00. Business competitions include sustainability The InterTradeIreland Seedcorn Investor Readiness Competition has opened for applications, with the prize fund including a €20,000 award for the best investment proposal from a company operating in the sustainability/low carbon sector. New start and early-stage businesses across the island of Ireland have been encouraged to enter for a chance to win a share of the €300,000 prize fund. More information on how to enter can be found at here, and the closing date for entries is 1pm, 28 April, 2023. The 2023 EY Entrepreneur of The Year Ireland programme finalists of the programme were also announced this week, one of whom will be presented with a special Sustainability Award for the finalist making the biggest contribution towards environmental sustainability through their business. Winners were also announced this week for the Irish Business Design Challenge 2023, which focuses on raising awareness of the importance of incorporating design and sustainability into business strategy, and the benefits it brings to those businesses and the wider Irish economy and society. The Challenge was open to micro, small and medium Irish businesses offering a prize fund of over €50,000. European Parliament approves  key climate and deforestation laws  The European Parliament this week approved sweeping reforms to increase the ambition of EU climate policies. This included several key pieces of legislation that are part of the Fit for 55 in 2030 package, the suite of measures with which the EU plan to reduce greenhouse gas (GHG) emissions by at least 55% by 2030 compared to 1990 levels in line with the European Climate Law. Parliament voted to approve: The reform of the EU’s Emissions Trading System (ETS) which increases the ambition of the ETS and for the first time including the maritime sector and aviation, phasing out the free allowances to the aviation sector by 2026 and promoting the use of sustainable aviation fuels. The new EU Carbon Border Adjustment Mechanism (CBAM) which aims to incentivise non-EU countries to increase their climate ambition and to ensure that EU and global climate efforts are not undermined by production being relocated from the EU to countries with less ambitious policies. Importers of these goods covered by CBAM would have to pay any price difference between the carbon price paid in the country of production and the price of carbon allowances in the EU ETS. The CBAM will be phased in from 2026 until 2034 at the same speed as the free allowances in the EU ETS are being phased out. A Social Climate Fund, to be set up in 2026, which aims to ensure that the climate transition will be fair and socially inclusive for vulnerable households, micro-enterprises and transport users who are particularly affected by energy and transport poverty The Parliament also voted to approve, with a large majority, a new law to fight global deforestation. This law obliges companies to ensure products sold in the EU have not led to deforestation and forest degradation and that they comply with relevant legislation of the country of production, including on human rights, and that the rights of affected indigenous people have been respected. Penalties for non-compliance shall be proportionate and dissuasive and the maximum fine must be at least 4% of the total annual turnover in the EU of the non-compliant operator or trader. The text of the above laws has to be formally endorsed by Council, and will then be published in the EU Official Journal and enter into force 20 days later. EU’s Mission on Climate Adaptation launches portal for regional and local authorities The European Commission has launched a portal to help drive forward the EU’s Mission on Adaptation to Climate Change. The Portal offers knowledge and tools for use by regional and local authorities to help them develop, implement and monitor their climate change adaptation plans. The knowledge, data and tools can be tailored for use at regional scale and provides easy access to relevant data that can help to inform understanding of the specific climate vulnerabilities and risks that regional and local authorities need to address. European Commission calls on Ireland to fully transpose EU rules on work-life-balance for parents The European Commission has sent a reasoned opinion to Ireland and 10 other Member States for failing to notify national measures fully transposing EU rights on Work-Life Balance for parents and carers. The Work-Life Balance Directive aims to foster equal participation of men and women in labour market, by encouraging equal sharing of care responsibilities between parents. The transposition deadline for the Directive was 2 August 2022. Member States now have two months to take the necessary measures to comply with the reasoned opinion; otherwise, the Commission may decide to refer them to the Court of Justice of the European Union. Technical Sustainability Accounting Updates (From our colleagues in Professional Accounting) The International Sustainability Standards Board (ISSB) has issued its supplementary April 2023 update which highlights preliminary decisions of the ISSB in the month. The World Council of Credit Unions has recently released its 2023 International Advocacy Sustainable Finance Report, ‘What Credit Unions should know about Sustainable Finance’ which highlights important issues, trends and recommendations to promote sustainability in the global financial sector. The report acknowledges the efforts by regulatory and standard-setting bodies in addressing climate-related financial risks and promoting sustainable finance, emphasizing the importance of proportionality language in regulatory frameworks and considering the unique benefits of the cooperative model of credit unions.  Articles Irish CFOs risk falling behind on ESG (Accountancy Ireland) European Parliament backs reform of EU carbon market (RTÉ) Rise of the Climate Rating Agencies - Government and the private sector rely increasingly on risk-modeling firms that claim they can zero in on exposure to climate change Public may be asked take one car journey less per week in second phase of proposed strategy (Irish Times) Isme seeks opt-out for small firms from EU law tackling human rights, labour and climate abuses Irish Independent A different way to measure the climate impact of food - Introducing The Economist’s banana index (The Economist)   Did  you know? TikTok has reportedly decided to remove climate change denial videos and direct users to 'authoritative information'. Any clips which contain misinformation about the climate crisis will be removed, and new search features will direct anyone who looks up climate content towards "authoritative information", sourced in partnership with the UN. This is similar to the approach taken on YouTube, which promotes links to the UN's web pages on climate change when people search for relevant videos. The announcement was made ahead of Earth Day 2023 on Saturday, April 22. This is a global day of environmental activism to bring about policy changes, mobilize funding and transform human behaviour to fight the climate crisis. Podcast RAF plane refuels on cooking oil (RTÉ News) (0:34) Watch Back Chartered Accountants Worldwide’s webinar on greenwashing this week featured Daniel Thomas, Chief UK Business Correspondent for the Financial Times and a panel of experts from the worlds of business, finance and law. Panellists, who discussed issues around greenwashing and its consequences, included Tsuyoshi (Yoshi) Domoto, ESG & Sustainability Consultant, GLIN Impact Capital; Aisling McCaffrey ACA, Director – Sustainability, Financial Services Advisory Grant Thornton Ireland; Elena Margineanu, Ph.D. Lecturer at the Free International University of Moldova; and Emma Schuster, Climate Risk Analyst, Just Share. Watch back here   Upcoming Events   The Chartered Accountants Ireland District Societies are getting together to mark Earth Day 2023 on Saturday 22 April. Each society is organising a clean-up in their area. It's a great opportunity for members to meet up, bring their families and friends and make a positive impact in their communities. Keep an eye out for messages from your own society to find out how to get involved. Find your district society here. ICAS special summit on sustainability reporting (London) The ICAS sustainability summit will be an opportunity for those closest to developing and implementing UK, European and International sustainability reporting disclosure standards to discuss how we meet the information needs of users and stakeholders. In person, in London, speakers include Andrew Death, Deputy Director at the UK Government’s Department of Business and Trade, Judy Kuszewski, Chair of the Global Sustainability Standards Board, Indy Singh Hothi CA, ICAS President, and Mark Vaessen, President of Accountancy Europe. 26 April DETE, Building Better Businesses  Midlands Park Hotel, Portlaoise Free event hosted by the Department of Enterprise, Trade and Employment is holding a series of free events for businesses which will focus on the opportunities and challenges presented by digital transformation and the transition to a low carbon economy. 27 April –  from 8.30 am to 1.30 pm. Accountancy Europe - Join Accountancy Europe for the webinar Towards digital corporate reporting with CSRD  The European Single Electronic Format’s (ESEF) implementation has taught us that timely preparation and communication are the most important factors for the success of relevant IT projects. Now, EU Member States have started implementing the Corporate Sustainability Reporting Directive (CSRD) for transposition. This webinar will explore the role of different parties for an effective CSRD implementation, lessons learnt from ESEF, the interconnectivity between financial and sustainability information via digitalisation and current activities and plans of EU authorities for supporting digital sustainability reporting. 16 May, 14:00-16:00 CEST  Irish Environmental Network, National Biodiversity Week 2023 May 19-28th Business Post, ESG Summit, Croke Park, Dublin May 30 Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 3 May Following three sellout sittings, our Certificate in Sustainability Strategy, Risk and Reportingfor accountants is back again in May 2023. Over 8 weeks, you'll cover key reporting frameworks and metrics, and learn to address the ESG opportunities and challenges that organisations already face. Find out more Member Survey We want to support our members in the rapidly-developing area of sustainability/ESG. Please complete this short survey (approx. three minutes) to help us understand your views and organisation’s sustainability profile. You can click the link or scan the QR to take part. Survey Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountant now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd Wednesday of every month Next : 26 April, 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would like to attend please email sustainability@charteredaccountants.ie You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

  In this week’s Sustainability/ESG bulletin, read about the zero VAT rate announced by the Irish Government for the supply and installation of solar panels, the sign-off on the Renewable Transport Fuel Regulations, and the inclusion of sustainability in the Department of Enterprise, Trade and Employment’s Skills for Better Business Online Assessment. Also covered is the launch of the low-carbon centre of excellence – the CUBE – in Portlaoise, a consultation on climate change reporting by specified public bodies in Northern Ireland, and articles, podcasts and upcoming events. . Zero rate of VAT for supply and installation of solar panels A zero rate of VAT for the supply and installation of solar panels for private dwellings was announced this week by Minister for Finance, Michael McGrath and Minister for the Environment, Climate and Communications, Eamon Ryan. Describing the measure as “another step on Ireland’s journey to cleaner, cheaper, renewable energy” Minister Ryan further commented: “We have removed planning permission requirements to install solar panels on residential homes. Our Micro-generation Support Scheme is continuing to prove very successful, following record levels of installations supported in 2022 via the Domestic Solar PV Scheme … With thousands of householders also signing up to sell their excess renewable electricity back to the grid; there is now an even greater opportunity for citizens to be part of the energy transition”. This is a permanent change and will come into effect from 1 May 2023. Minister Ryan signs off on Renewable Transport Fuel Regulations Eamon Ryan, Minister for the Environment, Climate and Communications and Minister for Transport, TD, has signed off on new Renewable Transport Fuel Regulations 2023 which will support Ireland’s continued transition to cleaner and sustainable forms of fuel mixes in the transport fleet and help meet national Climate Action Plan targets. The regulations complete a suite of regulatory changes implemented in partnership and consultation with stakeholders over the past two years, as committed to in the Renewable Fuel for Transport Policy 2021. Skills for Better Business Online Assessment includes strategy questions on sustainability Questions on sustainability form part of the strategy assessment section of the Department of Enterprise, Trade and Employment’s Skills for Better Business Online Assessment. The Skills for Better Business Online Assessment was developed as a collaborative project between the Department of Enterprise, Trade and Employment, and a number of national business support agencies. A series of questions about management capabilities that can be answered in under 10 minutes, Skills for Better Business was launched in November 2022 as part of a two-part initiative aimed at assisting SME owners and managers across Ireland. The Online Tool is complemented by a sign-posting resource providing quick contact information for management education and training. The CUBE - low carbon centre of excellence launches in Portlaoise A dedicated centre for the development of new business and economic activity in the Laois and the Midlands region has been launched by Minister for Enterprise, Trade and Employment Simon Coveney TD. The CUBE, which will support and assist a transition to a low carbon economy, is the first of its kind in the region, and is situated in Portlaoise Town, designated as Ireland’s first ‘Low Carbon Town’. The town will serve as a roadmap for the development and rollout of similar low carbon initiatives in towns around Ireland. The services and experience required to implement these Low Carbon initiatives will be further leveraged through the CUBE for enterprise and industry to future proof the regions for a changing economy. DAERA launches consultation on climate change reporting by specified public bodies Northern Ireland’s Department for Agriculture, Environment and Rural Affairs (DAERA) has launched a consultation on developing future regulations that will place climate change reporting duties on specified public bodies. The regulations are required to be made under the Climate Change Act (Northern Ireland) 2022, which sets out Northern Ireland’s framework for tackling climate change and reducing emissions. This Act sets a target on Northern Ireland departments to deliver net zero emissions in Northern Ireland by the year 2050. The consultation, which aims to build on information already gathered by DAERA during pre-consultation, also aims to gather views on any potential future support a specified public body might need to help them deliver on their climate change reporting duties.The consultation will remain open until 9 June 2023 and can be accessed on the DAERA website. 18 April: Greenwashing and Chartered Accountants An international webinar on greenwashing organised by Chartered Accountants Worldwide will take place next Tuesday, 18 April from 5-6pm BST. Daniel Thomas, Chief UK Business Correspondent for the Financial Times, will host a panel of experts from the worlds of business, finance and law, who will discuss issues around greenwashing and its consequences. Experts include Tsuyoshi (Yoshi) Domoto, ESG & Sustainability Consultant, GLIN Impact Capital; Aisling McCaffrey ACA, Director – Sustainability, Financial Services Advisory Grant Thornton Ireland; Elena Margineanu, Ph.D. Lecturer at the Free International University of Moldova; Michael Izza, CEO of ICAEW, Chairman, Chartered Accountants Worldwide; and Kate Robertson, Co-Founder, One Young World. Register here. 27 April: Ask the Expert, How ‘green’ is ‘green electricity’? Economies urgently need to reach net-zero which means a huge decline in the use of coal, oil or gas in favour of green electricity. But how do we know if the electricity we’re buying is actually ‘green’? In a 15-minute interview, Killian Daly, General Manager with EnergyTag and global expert on science-based decarbonisation at scale, will answer your questions on electricity, what is truly 100% renewable electricity and what standards – if any – exist for renewable electricity. Register here for this webinar on 27 April 2023 12:45-13.00. Articles Coffee business takes lead on sustainability (Accountancy Ireland) Laying the groundwork for the ISSB sustainability standards (Accountancy Ireland) Govt must invest in ports in order to build offshore wind energy projects, report finds (The Journal) Sales of electric cars continue to rise as diesel slows (RTÉ News) Bus Éireann claims 470,000km of emissions-free travel last year (Irish Times) Podcast NewEra's role in the Climate Action Framework. In this 12-minute episode, Jacinta McDonnell, John Dillon, and JP Corkery of NewERA discuss the Climate Action Framework for the commercial semi-State sector. (Podcast) (12 minutes) Upcoming Events   SAICA Sustainability reporting: Navigating the Sustainability Reporting Standards – Webcast  With the International Sustainability Standards Board's (ISSB) first Sustainability Disclosure Standards (IFRS S1 and IFRS S 2) expected to be become effective from January 2024, SAICA is pleased to host Dr Ndidi Nnoli-Edozien, the ISSB Board member to provide an update on the key discussions made by the ISSB on the upcoming IFRS S1 and IFRS S2 to be published by the end of June this year.  17 April Chartered Accountants Worldwide, Greenwashing Webinar -  Hosted by Daniel Thomas, Chief UK Business Correspondent for the Financial Times Experts, experts include Tsuyoshi (Yoshi) Domoto, ESG & Sustainability Consultant, GLIN Impact Capital; Aisling McCaffrey ACA, Director – Sustainability, Financial Services Advisory Grant Thornton Ireland; Elena Margineanu, Ph.D. Lecturer at the Free International University of Moldova; Michael Izza, CEO of ICAEW, Chairman, Chartered Accountants Worldwide; and Kate Robertson, Co-Founder, One Young World. 18 April @ 5:00 pm - 6:00 pm BST The Chartered Accountants Ireland District Societies are getting together to mark Earth Day 2023 on Saturday 22 April. Each society is organising a clean-up in their area. It's a great opportunity for members to meet up, bring their families and friends and make a positive impact in their communities. Keep an eye out for messages from your own society to find out how to get involved. Find your district society here. ICAS special summit on sustainability reporting (London) The ICAS sustainability summit will be an opportunity for those closest to developing and implementing UK, European and International sustainability reporting disclosure standards to discuss how we meet the information needs of users and stakeholders. In person, in London, speakers include Andrew Death, Deputy Director at the UK Government’s Department of Business and Trade, Judy Kuszewski, Chair of the Global Sustainability Standards Board, Indy Singh Hothi CA, ICAS President, and Mark Vaessen, President of Accountancy Europe. 26 April DETE, Building Better Businesses  Midlands Park Hotel, Portlaoise Free event hosted by the Department of Enterprise, Trade and Employment is holding a series of free events for businesses which will focus on the opportunities and challenges presented by digital transformation and the transition to a low carbon economy. 27 April –  from 8.30 am to 1.30 pm. Accountancy Europe - Join Accountancy Europe for the webinar Towards digital corporate reporting with CSRD  The European Single Electronic Format’s (ESEF) implementation has taught us that timely preparation and communication are the most important factors for the success of relevant IT projects. Now, EU Member States have started implementing the Corporate Sustainability Reporting Directive (CSRD) for transposition. This webinar will explore the role of different parties for an effective CSRD implementation, lessons learnt from ESEF, the interconnectivity between financial and sustainability information via digitalisation and current activities and plans of EU authorities for supporting digital sustainability reporting. 16 May, 14:00-16:00 CEST  Irish Environmental Network, National Biodiversity Week 2023 May 19-28th Business Post, ESG Summit, Croke Park, Dublin May 30   Certificate in Sustainability Strategy, Risk and Reporting Classes start Wednesday 3 May Following three sellout sittings, our Certificate in Sustainability Strategy, Risk and Reportingfor accountants is back again in May 2023. Over 8 weeks, you'll cover key reporting frameworks and metrics, and learn to address the ESG opportunities and challenges that organisations already face. Find out more   Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountant now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd Wednesday of every month Next : 26 April, 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would like to attend please email sustainability@charteredaccountants.ie You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.