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COP29 – the 2024 global climate summit – is coming to a close, after two weeks of negotiations in Baku, Azerbaijan. Climate finance has been a major focus of the summit, particularly the setting of a new finance target called the New Collective Quantified Goal, or NCQG, for tackling climate change. The goal will replace a goal initially agreed in 2009, when developed nations pledged to provide $100 billion annually in climate financing for developing countries.  (Here’s a quick refresher on COP from the Chartered Accountants Ireland website). X marks the spot in the draft of the agreement Negotiations on the first draft agreement on climate finance have failed to produce a document acceptable to all parties. It was immediately deemed inadequate by EU negotiators, with EU Climate Commissioner Wopke Hoekstra stating “As for the text overall, I'm not going to sugarcoat it - it is clearly unacceptable as it stands now”. The 10-page draft of an agreement on a ‘new collective quantified goal’ (NCQG) did not contain even a range of values for the headline goal, recognising that developing countries need a commitment of at least “USD [X] trillion” per year. This mystery figure – and who will pay it – are among the sticking points at COP this year, which can be summarized as follows: How much money? The amount of finance needed by developing countries to fight climate change has been the subject of much debate. Rich nations have pledged $100 billion a year. Many developing countries say that $1.3 trillion a year is accurate. (For context, $2.4 trillion was spent on weapons in 2023, and at least $1 trillion on fossil fuel subsidies in 2022.)   Grants or loans? Developing countries are advocating for the money to be given in the form of grants from rich governments, and not loans which would add to the national debt of vulnerable countries. Speaking at the summit, Ireland’s Minister from Climate Eamon Ryan, described this as “a fundamental justice issue”, and stated that COP is about “changing the financial system so that fundamental injustice does not continue into the future.” (Minister Ryan has been asked by the UN and the Cop29 presidency to lead negotiations on adaptation).   Public or private? Developed countries want all sources of finance, including public money and private investment, to be counted toward the goal.   Which countries should pay? The definition being used at COP of a ‘developed’ country dates from 1992. Delegates from both developed and developing countries have described this definition as ‘obsolete’. They advocate for China and India in particular to no longer be treated as developing countries and to provide financial assistance to poorer countries. Other issues Fossil fuels At last year’s COP in Dubai, the final agreement contained a pledge to “transition away” from fossil fuels. It was the first time in the history of the climate negotiations that nearly 200 countries agreed to even mention fossil fuels in the agreement. Many commentators have expressed concern that this pledge is being neglected at this year’s COP in Baku, and the high number of representatives from fossil fuel companies, and the location for the conference itself, has drawn criticism from several sources: Azerbaijan’s total economy is heavily dependent on oil and gas, which account for about half of and more than 90% of its exports, and the Chief Executive of the international climate summit was secretly filmed promoting fossil fuel deal by an undercover climate organisation days before the conference was to get underway. Who was there – and who wasn’t Another issue of note this year was the absence of various world leaders (including Ireland’s), although US President Joe Biden did travel to the Amazon to launch the new Brazil Restoration & Bioeconomy Finance Coalition (BRB Finance Coalition), members of which include the World Bank Group and the World Economic Forum. Europe’s official COP29 delegation was led by Lídia Pereira, with European Commissioner for Climate Action Wopke Hoekstra convening a press conference with representatives of ‘like-minded ambitious countries’ to underscore their commitment to delivering Nationally Determined Contributions (NDCs) that are aligned with a 1.5°C trajectory. Ireland’s national statement to the summit was delivered by Minister for Climate Eamon Ryan, who highlighted the importance of a successful conclusion to the talks: “Giving up would be unforgiveable, but success can help restore belief in multilateralism and restore confidence.” Another Irish commentator at COP29 was the Chair of the Elders and former President of Ireland Mary Robinson. Mrs Robinson drew attention to the discrimination and inequality that climate change causes globally to women and children and was critical of what she described as attempts by the Vatican, Russia and Saudi Arabia to blocking progress on a gender-related climate action plan.   The Global Carbon Market Another important highlight of this COP was the endorsement of a global carbon market framework under Article 6 of the Paris Agreement. Under Article 6 countries are able to transfer carbon credits earned from the reduction of greenhouse gas emissions to help one or more countries meet their climate targets. Although the COP29 presidency welcomed this ratification of the last part of the Paris Agreement as an ‘early win’,  other commentators fear that there are still unresolved fundamental and technical issues. Separately, the Integrity Council for the Voluntary Carbon Market has approved three methodologies for generating high-integrity carbon credits aimed at reducing emissions from deforestation and forest degradation in developing countries (‘REDD+’). The multi-stakeholder-led independent not-for-profit organisation was set up in 2021 in response to the final recommendations of the Taskforce on Scaling the Voluntary Carbon Markets (TSVCM).   Read more Fight over cash at climate summit as time runs out at COP29 (BBC) COP29 climate talks enter final phase: What happens next? (RTÉ News) UAE urges countries to honour fossil fuels vow amid Cop29 impasse (The Guardian) COP29: The selfish case for climate finance - New academic paper argues climate-focused grant finance is in rich countries’ economic interest (Financial Times) – Premium G20 helps lift mood at Cop29 climate talks (Irish Times)

  In this week’s Sustainability/ESG bulletin read about COP29, Government approval for negotiations on an UNDP Project Office in Dublin, a shift among Irish businesses towards sustainability, a consultation on the establishment of a Just Transition Commission for Northern Ireland, news from Europe, as well as the usual resources, podcasts, webinars, articles and events. Ireland news COP29 – a finance focus for the global climate summit COP29 – The 2024 global climate summit – is underway this week. Running until 22 November, with world leaders, policy-makers, diplomats and activists converging on Baku, Azerbaijan, the summit will discuss the world’s action on tackling climate change. The most significant event on the global climate calendar, the summit’s focus this year is on climate finance. Negotiations will centre on the setting of a new finance target for tackling climate change, called the New Collective Quantified Goal, or NCQG. This will replace a goal initially agreed in 2009, when developed nations pledged to provide $100 billion annually in climate financing for developing countries. In the words of one commentator, Claire Jones, Partner and Head of Responsible Investment at LCP, “Climate change is one of the most financially material systemic risks that long-term investors face — rather than just impacting the value of one single stock, it has the potential to depress economies and even cause a financial market collapse”. Minister Eamon Ryan, T.D., is leading the Irish the delegation, which will collaborate with EU partners and engage in climate diplomacy through various groups.   Government approves negotiations on the establishment of UNDP Project Office in Dublin Minister Eamon Ryan has received government approval to enter negotiations on the establishment of a United Nations Development Programme (UNDP) Project Office in Dublin. This would be the first formal presence of the UNDP in Ireland, which is tasked with helping countries eliminate poverty and achieve sustainable economic growth and human development. It is considered that locating the office in Dublin has the potential to build upon Ireland’s track record in international financial services, including sustainable finance, which is at the core of sustainable development and an integral part of tackling climate change.   Decarbonisation in third update to White Paper on Enterprise The recently published third update report to the White Paper on Enterprise has identified  a range of updates across 40 key initiatives progressed during 2024 to support enhanced competitiveness and decarbonisation across Ireland’s economy. These include the publication of Powering Prosperity – Ireland’s Offshore Wind Industrial Strategy and the Roadmap for Decarbonisation of Industrial Heat. The update also identifies wider enterprise support measures through a range of ongoing initiatives including the Bioeconomy Action Plan, the Growth and Sustainability Loan Scheme, and continued take up of the Environmental Aid/Green Capital Grant and Green Transition Fund. The White Paper Implementation Plan 2023-2024 was originally published in May 2023.   Expansion of Zero Emission Heavy Duty Vehicles Purchase Grant Scheme Minister for Transport Eamon Ryan, T.D., has announced an expansion to the existing Zero Emission Heavy Duty Vehicle (ZEHDV) Purchase Grant Scheme. The scheme will now include purchase grants for charging infrastructure. The scheme expansion means successful applicants will be able to install their own depot charging points, and also facilitates public charging around logistics hubs, and in urban nodes.   €50 million retrofit scheme for SMEs A new €50 million Business Energy Upgrades Scheme (BEUS) has launched to support small and medium sized businesses (SMEs) carry out energy efficiency upgrades. The scheme offers up to €120,000 for a range of common building upgrade measures as well as support to significantly enhance existing building management systems and for retrofit design activities. The scheme, which will be administered by the Sustainable Energy Authority of Ireland (SEAI), is open to all businesses and small public bodies who are upgrading a building they own or occupy. A decision and grant offer can be generated within minutes of an application being made by an SME, addressing a key barrier for SMEs by allowing business owners to progress investments without delay and reducing the time spent accessing grant support. The scheme is reportedly one of several initiatives that will continue the scale-up of retrofit activity over the coming years.   Ongoing decarbonisation of Irish businesses Enterprise Ireland (EI) has announced this week that it has approved over €55 million in funding to support the decarbonisation of Irish businesses. The funding has benefited more than 400 Irish companies since June 2022, reducing CO2 emissions by an estimated 130,000 tonnes. Ireland’s commitment to reaching net-zero greenhouse gas emissions by 2050, and by 51% reduction by 2030, means that the enterprise sector must reduce on-site industrial emissions by 35% by 2030.   Sustainability efforts intensify among businesses Sustainability efforts have intensified among businesses in Ireland over the past two years, with 81% of respondents reporting a heightened focus on sustainability, a 19% increase from 2022. This is according to the EY State of Sustainability 2024, based on a survey of 200 sustainability decision-makers in Ireland. The report identifies customer demand, investor scrutiny, and regulatory frameworks as having a role in redefining corporate success.   Sustainability reputation improves among Irish firms A report carried out by the Dublin communications and PR agency, The Reputations Agency, has revealed that organisations have improved their reputation in sustainability overall, despite global setbacks; scores in Ireland have reportedly improved since 2023. The report, Ireland RepTrak® Sustainability Index 2024, now in its thirteenth year, tracks the perceptions of 5,500 members of the public on 100 prominent organisations in Ireland. The Index measures 16 sustainability factors which reflect the European Sustainability Reporting Standards (ESRS).   Irish electricity costs identified as threat to business viability Failure to address these costs of electricity in Ireland could threaten business viability, future investment, and decarbonisation efforts, according to a new energy paper published by business group, Ibec. The report, which highlights the impact of high electricity costs on Irish businesses, includes recommendations for an annual subvention to support renewable generation and network investment, as well as a long-term national energy and industrial strategy required to deliver an effective net zero transition.   Going for Growth development programme – female entrepreneurs Places remain available for a limited time only on Going for Growth, the programme for female entrepreneurs in any sector across the country interested in growing their business. The programme, which is supported by Enterprise Ireland and KPMG, aids female business owners as they seek to increase revenue, create employment, and export into new markets.  Recognised by the EU, OECD, and European Institute of Gender Equality as a key initiative in helping to foster greater ambition among female entrepreneurs and to support their growth aspirations, the programme is free to selected participants, with the new six-month cycle, which is due to begin with a one-day Launch Forum on January 14, 2025.    Northern Ireland/UK news Consultation on establishment of Just Transition Commission in Northern Ireland Minister for Agriculture, the Environment and Rural Affairs (DAERA) Andrew Muir, MLA,  has launched a consultation on establishing a Just Transition Commission for Northern Ireland. The commission is designed to ensure the transition to a net zero society is fair and that no-one is left behind or disproportionately affected. Its purpose will be to oversee the implementation of the just transition elements set out in the Climate Change Act, and to provide independent advice to all government departments on how to ensure that proposals, policies strategies and plans required to tackle climate change take account of the just transition principle. The consultation is open for responses for 9 weeks and closes on 13 January 2025. Europe news The European Commission is calling on Ireland to comply with a judgment of the Court of Justice on the adequate collection and treatment of urban waste water, and to fully transpose the Renewable Energy Directive. Ireland has two months to remedy the situation and notify the complete transposition of the Directive to the Commission or the Commission may decide to refer the case to the Court of Justice of the European Union.    The EU Parliament has adopted its demands for COP29, which aims to define a new collective goal for financing climate action. The resolution calls on all countries to agree on a post-2025 new collective goal on climate finance that is socially fair, aligned with the polluter-pays principle, and based on a variety of public, private and innovative sources of finance. MEPs also want the EU should step up its green diplomacy, expand global emissions trading and carbon pricing, and see COP send an “unambiguous signal” as a follow-up to the COP28 commitment to transition away from fossil fuels, including the phase-out of all direct and indirect fossil fuels subsidies and the reallocation of these resources towards climate action as soon as possible.   A briefing published by the European Environment Agency (EEA) has stated that increased use of wind turbines in coastal zones to provide Europe with renewable energy is a crucial element in decarbonizing Europe’s economy and in meeting its climate and energy targets as Europe seeks to increase offshore wind energy production by more than 16 times by 2050. The placement of these turbines should also carefully consider potential impacts on marine ecosystems. Congratulations! Congratulations to the Bank of Ireland and to the CIÉ Group for their success in sustainability categories at the Chartered Accountants Ireland Leinster Society Published Accounts Awards. Bank of Ireland took home the Arachas Sustainability and ESG Reporting Award for Listed entities, while the CIÉ Group won the award for Sustainability and ESG Reporting Award Unlisted entities. The awards, sponsored by Euronext and Arachas, and in partnership with the Business Post, highlight companies across the island of Ireland for excellence in corporate reporting. The awards have evolved over the years to include categories reflecting the changing nature of business and reporting requirements, going beyond just the scope of financial reporting. Technical update (From our Professional Accounting Team) The IAASB has published the much anticipated ISSA 5000 International Standard on Sustainability Assurance 5000, General Requirements for Sustainability Assurance Engagements.  This standard is a comprehensive, stand-alone standard suitable for any sustainability assurance engagements. It will apply to sustainability information reported across any sustainability topic and prepared under multiple frameworks. The standard is also profession agnostic, supporting its use by both professional accountants and non-accountant assurance practitioners. The draft standard was subject to a public consultation in 2023 and Chartered Accountants Ireland's response can be read here.    Event – Chartered Accountants Ireland  - Access to sustainable finance by SMEs Join experts Laura Heuston, John McGeown, Gordon Naughton and Orla O'Gorman for a discussion on the landscape of finance and other support options available for SMEs and entrepreneurs to facilitate businesses taking action. Part of the Sustainable Finance Week Ireland 2024, this seminar will be  in person on Wednesday, 27 November 2024 at 17.00-18.00 in Chartered Accountant House, and be hosted by Sustainability Advocacy Manager, Susan Rossney. Register here or through the Sustainable Finance Week Ireland platform Webinar In the third of our series on EU sustainability reporting, Dee Moran, Chartered Accountants Ireland and Derarca Denis from EY reviewed some of the practical challenges that companies have faced in preparing to comply with the CSRD. Watch back here. Articles Connecting finance and sustainability: accounting for intangibles (ICEAW Insights) Corporates tackling the key themes within sustainability (Irish Examiner) COP29 climate talks grapple with trillion-dollar task (RTÉ) COP29: What do all the words mean? (BBC) Explainer: A guide to COP29 climate jargon (RTÉ) Upcoming Events COP29 Climate Summit Date: Nov 11-22 Location: Azerbaijan Host: CBD, UN   iQuest & Business Post, ESG Autumn Summit Date: Nov 20th Location: Croke Park   Chartered Accountants Ireland (part of Sustainable Finance Ireland Week 2024), Access to sustainable finance by SMEs Part of Sustainable Finance Week Ireland, this seminar will describe the landscape of finance and other support options available for SMEs and entrepreneurs which can facilitate businesses taking action. It aims to debunk the concept of ‘green finance’ for SMEs and paint a clear picture of the steps and the commercially viable – scalable – actions SMEs could take to improve their impact and their ability to source finance for projects. Commercial financial products will be discussed, alongside the grants available from local enterprise offices (LEOs), Enterprise Ireland, the Sustainable Energy Authority of Ireland (SEAI). In person, Chartered Accountant House, Wednesday, 27 November, 17.00-18.00   Dublin Chamber, Internal Sustainability Integration - Building a Sustainable Workplace Culture Are you a professional in an internal facing role such as finance, operations, or HR? Our upcoming workshop at The Sustainability Academy is designed specifically for you. This session will guide you in integrating sustainability practices within your organisation’s internal mechanisms, demonstrating how these practices can improve employee engagement, operational efficiency, and the overall workplace environment. Virtual, 29 November, 09:30-13.00   Belfast Harbour Commissioners, Responsible Innovation Conference This conference will bring together business leaders, technology experts, and academics to discuss the ethical implications of technology. Participants will learn about managing the social and environmental impacts of technology while driving growth and innovation. The event will also include networking opportunities, allowing attendees to exchange ideas and collaborate on responsible business practices. In person, Belfast Harbour Commissioner, 29 November 2024, from 8:15 am   ADViCE, Net Zero Manufacturing: Navigating AI for efficiency This webinar will cover the practical application of AI to improve manufacturing efficiency focusing on optimising energy use and reducing emissions.  Virtual, 26 November 2024, 12:00 - 13:30 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 Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. Next meeting: November 27, 18:00-19:00 In person, Chartered Accountant House – Drinks & Networking 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.

  COP29 – the 2024 Climate COP - gets underway this week. World leaders, policy-makers, diplomats and activists will converge on Baku, Azerbaijan, to discuss the world’s progress towards the goals of United Nations climate treaties.   The Climate COP is the most significant event on the global climate calendar.     What is COP?  COPs stand for ‘Conference of the Parties’, i.e. the countries that have agreed to participate in and be bound by the UN treaties.   COPs are the main decision-making bodies of the United Nations treaty bodies. For example:   Climate COP: the summit of countries that have signed the United Nations Framework Convention on Climate Change treaty (UNFCCC). COP29 is taking place in Baku, Azerbaijan in November 2024.   Biodiversity: the summit of countries that have signed the United Nations Convention on Biological Diversity (CBD). COP16 took place in Colombia in October 2024   Desertification: the summit for signatories to United Nations Convention to Combat Desertification (UNCCD), which aims to accelerate action on land and drought resilience through a people-centred approach. COP16 will take place in Saudi Arabia in December 2024     Why do COPs matter to business?   While the summits have been criticised for being ‘talking shops’, COPs serve to restate the importance of tackling the crises caused by climate change, biodiversity collapse and desertification that affects businesses and citizens worldwide.   What is decided at COP filters down to organisations through legislation and policy, like Europe’s EU Green Deal, Ireland’s Climate Action Plans, through investors’ continued demands for projects that are aligned to climate targets to meet their own portfolio requirements, and to citizens adapting to the effect of disasters exacerbated by the ongoing climate and biodiversity crises.   What has happened at previous COPs?  Previous COPs have led to momentous agreements, the most significant of which was the Paris Agreement in 2015. This Agreement challenged the world to keep dangerous global warming to a level of 1.5° above pre-industrial levels.   In 2021, at the Glasgow COP, the International Sustainability Standards Boards (ISSB) was announced. Under the auspices of the International Federation of Reporting Standards (IFRS), this board has international support with its work to develop sustainability disclosure standards backed by the G7, the G20, the International Organization of Securities Commissions (IOSCO), the Financial Stability Board, African Finance Ministers and Finance Ministers and Central Bank Governors from more than 40 jurisdictions.   2021 also saw the formation of the Glasgow Financial Alliance for Net Zero (GFANZ), a global coalition of leading financial institutions committed to accelerating the decarbonization of the economy.   At COP27 in Egypt, a new loss and damage fund was set up for those countries most severely impacted by the effects of climate change (floods, drought, desertification, and land loss due to rising sea-levels) and COP28 last year saw the ‘global stocktake’, required under the Paris Agreement to assess progress made since 2015 and show what needs to be done to address gaps by 2030.  This COP will be significant for finance, as the focus of negotiations will be the setting of a new finance target for tackling climate change. The New Collective Quantified Goal, or NCQG, will replace a goal initially agreed in 2009, when developed nations pledged to provide $100 billion annually in climate financing for developing countries.    Did you know?   The first Climate COP  – COP01 – was in Berlin in 1994. It was presided over by the-then Environmental Minister, Angela Merkel.    Articles  Battle lines drawn on climate finance ahead of COP29 (Financial Times)  The Irish Times view on Cop29: climate policy must not be pushed into the background (The Irish Times)  The COP29 climate summit is facing big decisions for the world - sign up for our newsletter (The Journal)    Podcast  A Preview of COP29: What Business Leaders Should Know with Outrage & Optimism Co-hosts (Climate Rising)  Explainers  A guide to COP29 climate jargon (RTÉ) Why Cop29 matters to you, Ireland and the world despite Trump ‘whiplash’ (The Irish Times)  The NCQG: What is it and why does it matter? (World Economic Forum)       

Chartered Accountants Ireland has today launched its new guide to Foreign Direct Investment (FDI) in Ireland at an event in conjunction with IDA Ireland in Dublin.  Over 100 attendees gathered in Chartered Accountants House to hear from a panel of: Cróna Clohisey, Director of Public Affairs Chartered Accountants Ireland Feargal O'Rourke, Chair, IDA Ireland Barry Doyle, President Chartered Accountants Ireland Ireland faces greater competition as a location for global FDI than ever before as we move into 2025, with other countries enhancing their offering at pace. While Ireland’s FDI policy has stood the country in good stead for decades, a slowdown in growth of the global economy coupled with accelerated industrial policy interventions by competitor countries means Ireland’s inward investment model is now at a crucial inflection point. Commenting at the event, Cróna Clohisey, Director Public Affairs, Chartered Accountants Ireland said “Ireland’s record of attracting FDI has been the envy of other countries for decades and IDA Ireland has played a pivotal role. However, against a backdrop of heightened geopolitical uncertainty and intensifying global competition for inward investment, we cannot afford to be complacent about our offering. The significant deficits in the State’s crucial infrastructure, including housing, energy, water, childcare and nationwide public transport, need to be addressed with urgency if we are to remain fully competitive in the race for future FDI.” Barry Doyle, President, Chartered Accountants Ireland said “We are all familiar with the advantages that Ireland holds in attracting FDI - EU membership, strategic location, young talented workforce and a stable business environment. Our members also represent a key competitive advantage, with Chartered Accountants playing a central role in supporting FDI the length and breadth of the country. “Competition has never been greater for the flow of FDI around the world, and with a new US administration taking office in a matter of weeks, there is an increased chance of disruption to the traditional flow of FDI globally. However, investors with a long term, sustainable outlook will look beyond short-term protectionism. Ireland as a safe and stable environment will continue to benefit greatly from FDI and we as Chartered Accountants will be there to lead and support such investments.”

Increased global competition one of several challenges to FDI model Addressing infrastructural deficit critical to ensuring continued FDI growth Chartered Accountants Ireland launches FDI guide, highlighting critical role its members play in supporting investment   Ireland faces greater competition as a location for global Foreign Direct Investment (FDI) than ever before as we move into 2025, with other countries enhancing their offering at pace. While Ireland’s FDI policy has stood the country in good stead for decades, a slowdown in growth of the global economy coupled with accelerated industrial policy interventions by competitor countries means Ireland’s inward investment model is now at a crucial inflection point, according to Chartered Accountants Ireland.  The Institute, the largest professional body on the island of Ireland, representing over 38,400 members, has today launched its new guide to FDI in Ireland at an event in conjunction with IDA Ireland in Dublin.   Cróna Clohisey, Director Public Affairs, Chartered Accountants Ireland said  “Ireland’s record of attracting FDI has been the envy of other countries for decades and IDA Ireland has played a pivotal role. However, against a backdrop of heightened geopolitical uncertainty and intensifying global competition for inward investment, we cannot afford to be complacent about our offering. The significant deficits in the State’s crucial infrastructure, including housing, energy, water, childcare and nationwide public transport, need to be addressed with urgency if we are to remain fully competitive in the race for future FDI.” Barry Doyle, President, Chartered Accountants Ireland said  “We are all familiar with the advantages that Ireland holds in attracting FDI - EU membership, strategic location, young talented workforce and a stable business environment. Our members also represent a key competitive advantage, with Chartered Accountants playing a central role in supporting FDI the length and breadth of the country. “Competition has never been greater for the flow of FDI around the world, and with a new US administration taking office in a matter of weeks, there is an increased chance of disruption to the traditional flow of FDI globally. However, investors with a long term, sustainable outlook will look beyond short-term protectionism. Ireland as a safe and stable environment will continue to benefit greatly from FDI and we as Chartered Accountants will be there to lead and support such investments.”    

  In this week’s Sustainability/ESG bulletin read about Ireland and the UN Biodiversity COP16, €55 million in new funding for Irish business decarbonisation, and the €1 million from Irish businesses to nature-positive actions. Also covered is DAERA’s consultation on draft environmental principles policy statement, the launch of the UK SME Climate Hub’s new platform of climate action tools, reports from the WBCSD and the London Stock Exchange, as well as the usual resources, podcasts, webinars, articles and events.   Ireland news Accounting for Nature - the Biodiversity COP Ireland attended COP16, the United Nations conference aimed at protecting and restoring biodiversity, which took place in Colombia from 22 Oct to 1 November. At the conference, Minister for Nature and Heritage Malcolm Noonan reportedly committed to continue to scale up nature restoration and protect its vulnerable ecosystems, while improving climate resilience. Chartered Accountants Ireland has written an explainer about COP16 and what it means for businesses.  Ireland’s competitive advantage The Department of the Taoiseach has published the Response to Ireland’s Competitiveness Challenge 2024, outlining how the Government is addressing the priority areas and actions proposed by the National Competitiveness and Productivity Council (NCPC). Among other issues, the report highlights the promotion and delivery of sustainable development, and the measures taken to deal with expenditure pressures, including ageing, climate, digitalisation and other fiscal and economic shocks that may arise in future. (See also our event Maintaining Ireland’s Competitive Advantage: FDI in 2024 and Beyond, taking place on 12 November in Chartered Accountants House). New Heat Bill paves the way for district heating nationwide The Irish Government has approved the General Scheme of the Heat (Networks and Miscellaneous Provisions) Bill 2024, which aims to facilitate the growth of a district heating industry in Ireland. District heating utilises a centralised heat source, such as a waste facility or data centre, to heat multiple buildings across a potentially wide geographical area. The development of such legislation would establish a regulatory model to ensure price protection for large and small heat network consumers. Increase in approvals of Energy Efficiency Grant applications Approval of applications for the Energy Efficiency Grant has nearly doubled since a series of revisions to its terms last July, according to a statement made by the Department of Trade, Enterprise and Employment. The grant, administered by the Local Enterprise Offices (LEOs), is for businesses investing in new energy efficient equipment, smart control systems, heat recovery and more. Welcoming the news, Minister for Enterprise, Trade and Employment, Peter Burke, T.D., encouraged interested businesses to contact their LEO, commenting: “Sustainability is good for business. By cutting energy costs, businesses will save money.” Separately the SEAI has launched a new section on its website sign-posting businesses to technologies to enhance energy efficiency and move towards carbon neutrality. Smart Energy for Business also includes tips for staff interested in smart energy habits at home. Significant projected gaps to energy targets The Sustainable Energy Authority of Ireland (SEAI) has published its National Energy Projections 2024 report, which points to significant projected gaps in Ireland’s ability to meet all legally binding targets, including national carbon budgets and sectoral emissions ceilings, as well as EU obligations on renewable energy, energy efficiency and greenhouse gas emissions. The report goes on to state that “unprecedented technology change must be combined with strong policies and measures to limit growth in energy demand and disincentivise behaviours and practices that incur wasteful energy use in all parts of society”.  Enterprise Ireland Approves Over €55 Million in Funding to Drive Decarbonisation in Irish Businesses Enterprise Ireland (EI) has approved over €55 million in funding to support the decarbonisation of Irish businesses it was announced this week. Approved under the Environmental Aid scheme and EI’s Green Transition Fund, the funding has benefited more than 400 Irish companies since June 2022, reducing CO2 emissions by an estimated 130,000 tonnes. The Department of Enterprise, Trade and Employment also allocated a further €300 million in June this year under the Environmental Aid scheme to support EI’s broader commitment to advancing sustainable growth among Irish companies. Public support for climate action remains high across Ireland The Environmental Protection Agency (EPA) has announced that public support for climate action remains high across Ireland, according to national, regional, and county-level data about people’s climate change beliefs, attitudes, policy preferences and behaviours. There is majority support for all surveyed policies nationally, although an emerging divergence was noted between Dublin and other counties regarding support for taxing fossil fuel-powered cars. The data noted an increased awareness of the potential impacts of risks resulting from climate change among people in counties with a history of environmental risks such as flooding, water shortages or wildfires. Businesses commit over €1 million to finance Irish farm biodiversity A new national initiative has launched that aims to make farming for nature sustainable and scalable, while providing businesses with an opportunity to fund nature-positive actions on Irish farms in a way that can be reported on under new EU sustainability reporting directives. ReFarm, established by Dr Brendan Dunford, a founder of Burrenbeo Trust, and impact investor Anke Heydenreich, leverages private finance to complement public subsidies. A collaboration between Trinity College Dublin, Burrenbeo Trust and local and international organisations, ReFarm has already started to finance projects on Irish farms to address the biodiversity and climate crises.   Northern Ireland/UK news (From the Institute’s Tax News) UK Government publishes response to UK CBAM consultation The UK Government has published its response to the March 2024 consultation on the introduction of a UK Carbon Border Adjustment Mechanism ‘CBAM’. (The Institute responded to the consultation earlier this year.) The response confirms that the UK CBAM will be introduced on 1 January 2027, placing a carbon price on goods at risk of ‘carbon leakage’ that are imported to the UK from the aluminium, cement, fertiliser, hydrogen and iron and steel sectors. Read more here. DAERA opens consultation on draft environmental principles policy statement The Department of Agriculture, Environment and Rural Affairs (DAERA) is consulting on a draft environmental principles policy statement (EPPS). The statement sets out how five internationally recognised environmental principles should be interpreted and proportionately applied to policy making. When fully in force, all Northern Ireland government departments and United Kingdom government ministers making policy for NI will have a statutory duty to have due regard to the statement. The consultation close on Monday, 9 December. UK SME Climate Hub launches new platform of climate action tools The UK SME Climate Hub has launched its Action Space, a new platform of climate action tools, created for SMEs to understand the steps needed to achieve their net zero goals. The SME Climate Hub is a non-profit global initiative that empowers small to medium sized companies to take climate action and build resilient businesses for the future. London Stock Exchange warns of risks to 49 cities The COP29 Net Zero Atlas report by London Stock Exchange Group has called for G20 countries to set ambitious new 2035 targets to accelerate the pace of the transition and limit warming to well below 2°C by the end of the century.  The report, which aims to provide investors with analysis of physical and transition climate risks across the G20, points to the need for clear policy signals among companies and investors taking steps to mobilise long-term investment in greening the global economy. Highlighting the cost of inaction and the need for large scale adaptation measures and financing, the report points to physical effects of climate change intensifying across the globe, showing that 49 cities accounting for nearly 20% of global GDP, will be particularly affected. Separately, the Business Breakthrough Barometer report from the World Business Council for Sustainable Development (WBCSD) has emphasised the need for government action to unlock private sector investment at scale, upon which hinges the ability of countries to achieve plans to halve emissions by 2030 and meet the 1.5°C climate target. Notably, 91% of business leaders surveyed view the transition to net zero as an investment opportunity, but that without long-term, investment-positive policies, the next wave of large-scale investments are at risk. Europe news Copernicus confirms a new milestone in global temperature records 2024 is virtually certain to be the warmest year on record, and the first year above 1.5°C,  according to Copernicus Climate Change Service (C3S), the European Centre for Medium-Range Weather Forecasts on behalf of the European Commission. Commenting, Samantha Burgess, C3S Deputy Director, said: “This marks a new milestone in global temperature records and should serve as a catalyst to raise ambition for the upcoming Climate Change Conference, COP29.” Sustained progress needed to meet ambitious Climate Law targets Total net greenhouse gas emissions in the European Union dropped by 8% last year, according to the European Environment Agency’s recently published Energy Trends and Projections report. The drop was led by a significant decline in coal use and growth of renewable energy sources and supported by reduced energy consumption across Europe. The report cautions that sustained progress will be needed towards 2030 and beyond to meet ambitious targets set by the EU Climate Law. World news The Institute of Singapore Chartered Accountants (ISCA) has issued an illustrative sustainability report based on ISSB’s and GRI’s standards. The main objective of this report is to provide a glimpse of how a sustainability report could look like when a company adopts both the IFRS Sustainability Disclosure Standards and GRI at the same time. The Global Capacity Building Coalition (GCBC), which launched during September’s New York Climate Week, has released the beta version of their global capacity building platform. The platform will act as a ‘one-stop shop’ with a suite of resources, tools, and training on climate finance and related topics, for financial institutions and finance professionals seeking to develop their organisational capacity and individual knowledge and skills to accelerate and scale climate finance. The World Business Council for Sustainable Development (WBCSD) has published the twelfth edition of its ‘Reporting Matters’ series, aimed at enhancing the effectiveness of corporate sustainability reporting. Changing Gears: How are companies navigating higher expectations and demands in sustainability reporting offers insights into how effective reporting adds value and provides strategic direction. It includes latest reporting trends and data gathered from an in-depth review of 181 reports. The International Public Sector Accounting Standards Board (IPSASB) has announced the release of SRS ED 1, a new draft climate-related disclosure standard for governments and other private sector entities. This would be the first sustainability reporting standard for the public sector. SRS ED 1 is open for public comment until February 28, 2025.  Over 20 organisations have founded Nature Positive Matters, recognising the importance of nature positive action to economies and communities. A government-backed initiative, Nature Positive Matters is a network of leaders who recognise the growing international importance and economic value of looking after nature. Members of the network announced they will work together to support business uptake of nature-related reporting and data collection, pilot programs to inform policies and investment decisions that are good for nature, and develop tools to help investors understand whether an economic activity is environmentally sustainable. The United Nations Environment Programme (UNEP) has published a report that finds that nations must deliver dramatically stronger ambition and action in the next round of Nationally Determined Contributions (NDCs). The report, Emissions Gap Report 2024: No more hot air … please!, now in it’s 15th edition, brings together many of the world’s leading climate scientists to examine future trends in and provide potential solutions to the challenge of global warming. Updated NDCs are to be submitted early next year ahead of the COP30 climate talks in Brazil.  Did you know The Deposit Return Scheme, which launched on 1 February 2024, has collected over 635 million containers, refunding €110 million in deposits to consumers. Every month, over 100 million containers are collected and last month 73% of plastic bottles were returned. €70,000 has been collected for the Return for Children charity. Podcast Chair Emmanuel Faber and Vice-Chair Sue Lloyd discuss the latest ISSB developments  (Podcast -22 mins) Articles How we can leverage CSRD to drive sustainability and innovation (Accountancy Ireland – Briefly) Lack of female leaders in public companies a disgraceful indictment of Irish business (The Business Post) Greenwashing risks: a growing challenge for legal professionals (GRI) How to cut our dependence on fossil fuels rapidly (SEAI Blog – Hannah Daly, Jim Sheer) Why Tax is Essential for Comprehensive and Transparent CSRD Reporting (Grant Thornton) Upcoming Events COP29 Climate Summit Date: Nov 11-22 Location: Azerbaijan Host: CBD, UN Accountancy Europe, Shaping the future of sustainability assurance engagements Join Accountancy Europe and the International Federation of Accountants (IFAC) to discuss the latest developments in the world of sustainability assurance. In this webinar, you will hear insights from the International Auditing and Assurance Standards Board (IAASB), the Committee of European Auditing Oversight Bodies (CEAOB) and the Nordic Federation of Accountants. Virtual, 12 November, 15.00-16.45 (Brussels Time) Business for Biodiversity, Business & Biodiversity 101 Broaden your understanding of your business relationship with nature and get to grips with where to start on credible nature action and legislative compliance for your organisation. Topics include risks businesses are facing in this nature crisis, how they can address these risks and how can the Nature Positive approach bring opportunities to businesses. Virtual, 14 November, 13:00-14:00 Dublin Chamber, Sustainable Business Practices - Strengthening Customer Connections Designed for professionals in customer-facing roles, this workshop will provide the tools to incorporate sustainability into customer engagement strategies, leading to improved satisfaction and loyalty. Virtual, 15 November, 9.30-12.30 iQuest & Business Post, ESG Autumn Summit Date: Nov 20th Location: Croke Park Chartered Accountants Ireland (part of Sustainable Finance Ireland Week 2024), Access to sustainable finance by SMEs Part of Sustainable Finance Week Ireland, this seminar will describe the landscape of finance and other support options available for SMEs and entrepreneurs which can facilitate businesses taking action. It aims to debunk the concept of ‘green finance’ for SMEs and paint a clear picture of the steps and the commercially viable – scalable – actions SMEs could take to improve their impact and their ability to source finance for projects. Commercial financial products will be discussed, alongside the grants available from local enterprise offices (LEOs), Enterprise Ireland, the Sustainable Energy Authority of Ireland (SEAI). In person, Chartered Accountant House, Wednesday, 27 November, 17.00-18.00 Dublin Chamber, Internal Sustainability Integration - Building a Sustainable Workplace Culture Are you a professional in an internal facing role such as finance, operations, or HR? Our upcoming workshop at The Sustainability Academy is designed specifically for you. This session will guide you in integrating sustainability practices within your organisation’s internal mechanisms, demonstrating how these practices can improve employee engagement, operational efficiency, and the overall workplace environment. Virtual, 29 November, 09:30-13.00 Belfast Harbour Commissioners, Responsible Innovation Conference This conference will bring together business leaders, technology experts, and academics to discuss the ethical implications of technology. Participants will learn about managing the social and environmental impacts of technology while driving growth and innovation. The event will also include networking opportunities, allowing attendees to exchange ideas and collaborate on responsible business practices. In person, Belfast Harbour Commissioner, 29 November 2024, from 8:15 am 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 Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. Next meeting: November 27, 18:00-19:00 In person, Chartered Accountant House – Drinks & Networking 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.