Economy

  In this week’s Sustainability, Competitiveness & Resilience Bulletin, read about Chartered Accountants Ireland’s participation in the Funds Industry Climate Challenge, Irish fuel support schemes, and recommendations to mobilise private finance for nature restoration. Also covered is legislation to accelerate green and digital investment, progress on offshore wind, smart meter roll‑outs and just transition measures in Northern Ireland, and EU responses to the fossil fuel crisis, carbon markets and green finance. Developments in sustainability reporting and nature disclosures are included, plus global insights on circular economy, climate litigation, and investible opportunities, as well as the usual articles, resources and events. CHARTERED ACCOUNTANTS IRELAND Chartered Accountants Ireland is delighted to confirm that we will take part this year in the award-winning 2026 Funds Industry Climate Challenge. During the two-week climate championship, our team will log their daily climate-smart actions onto a platform that converts them into real CO₂e savings. May the best team win! IRELAND Fuel supports schemes worth €220 million announced    The Government has announced details of the Road Transporters Support Scheme (RTSS) for hauliers, ‘own account’ road haulage operators and bus and coach operators, and the new Fuel Support Scheme for farmers, agricultural contractors and fishers, worth a combined €220 million. Read more here. Report recommends ‘structured programme’ to attract private finance for nature restoration A report from Independent Advisory Committee (‘IAC’) on Nature Restoration has found that Ireland needs to invest hundreds of millions every year to restore nature and to support farmers, fishers and foresters to protect the environment. The report – Recommendations to inform the development and implementation of Ireland’s Nature Restoration Plan – represents the culmination of 15 months of work by the IAC, which was established in late 2024 to advise the Minister on the preparation of Ireland’s Nature Restoration Plan – a requirement under the EU Nature Restoration Law. The report includes 46 policy recommendations, with ‘funding nature restoration’ among its top three priority recommendations. As funding nature restoration ‘protects the foundation of our society and delivers economic returns across the whole of society’, the report recommends the government put in place a structured programme of incentives and benefits to attract private finance based on best-practice models. Listing examples such as Nature Credits, Green Bonds and Biodiversity Net Gain, the report advocates for opportunities for private sector organisations and individuals to invest in nature restoration at a national level to ensure high-quality, verifiable impact that supports long-term investment in nature restoration. Approval secured for legislation to incentivise acceleration of companies’ green and digital journeys Minister for Enterprise, Tourism and Employment Peter Burke has secured Government approval for the Industrial Development (Amendment) and Miscellaneous Provisions Bill 2026. The legislation empowers IDA Ireland and Enterprise Ireland to accelerate investment, employment and regional development. Once enacted, the Bill will ensure the enterprise agencies have the legislative tools they need to incentivise companies to accelerate their green and digital journeys and will make the approval of environmental protection aid grants less complex.  The Bill also streamlines the ability of the agencies to support projects in the Defence, Security and Resilience (DSR) sphere. Powering Prosperity: Implementation Progress Report shows actions delivered The Powering Prosperity Final Implementation Progress Report, published this week, has found that Ireland has made significant achievements in developing a successful offshore wind energy industry in Ireland as part of Powering Prosperity – Ireland’s Offshore Wind Industrial Strategy (launched by Department of Enterprise, Tourism and Employment in March 2024). Significant progress has been made over the lifetime of the Strategy which set out to capture the value of the country’s offshore renewable energy supply chain and maximise the economic impact of Ireland’s renewable energy goals. The report finds that 90 percent of the 40 actions outlined in the Strategy have been completed and a further three actions are still in progress. Work is underway on a green growth industrial strategy, which will be published later this year.  NORTHERN IRELAND/UK Design Plan for introduction of smart meters publishes Northern Ireland’s Department for the Economy has published a Design Plan that sets out how the region will introduce smart electricity meters over the coming years. The plan includes details of the roles and responsibilities of partners, how the system will protect consumers, and how procurement and installation will work. Businesses, including small and medium sized firms, will be covered by the roll-out and should benefit from reduced electricity costs, more accurate bills, fewer disputes, improved cash flow and a more reliable electricity network. Smart meters work by measuring electricity usage, like a traditional meter, without the need for estimated meter readings, giving consumers better control over their electricity usage. Two million smart meters have already been installed in the Republic of Ireland, while in Britain 22 million smart meters are now in use. “Lasting economic, social and environmental benefits” – Northern Ireland Assembly approves establishment of Just Transition Commission DAERA Minister Andrew Muir has described as “a significant milestone for climate action in Northern Ireland” the Assembly’s approval of legislation to establish a Just Transition Commission. Commenting, Minister Muir stated that “Climate Action benefits us all delivering lasting economic, social and environmental benefits from healthier communities to greater food and energy security.”  ‘Just transition’ is a term used to encompass a range of social interventions needed to secure people’s rights when economies are shifting to sustainable production. The establishment of an independent Just Transition Commission is provided for by Section 37 of The Climate Change Act (Northern Ireland) 2022. It will include representation from a number of sectors including agriculture, the environment, energy, transport, green finance, trade unions and youth groups. Funding for commercial-ready solutions tackling infrastructure challenges Connected Places Catapult has launched applications for Cohort 5 of the Department for Transport–funded Freight Innovation Fund Accelerator. The programme supports commercial-ready solutions tackling four freight and logistics challenges: renewable energy supply, autonomy, supply chain resilience, and environmental impact, efficiency or safety. In Phase 1, up to 12 SMEs can receive grants of up to £10,000 to develop real-world trial proposals. In Phase 2, up to eight SMEs may secure up to £100,000 to deliver trials through pre-commercial contracts. Find further details on eligibility and documentation here. Technical consultation on UK carbon border adjustment mechanism (CBAM) published HMRC has recently published a technical consultation on draft secondary legislation for the UK carbon border adjustment mechanism (CBAM) due to commence from 1 January 2027. This is a new tax which aims to ensure that highly traded carbon intensive goods imported into the UK face a comparable carbon price to that paid by manufacturers producing the same goods in the UK. Goods include aluminium, cement, fertiliser, hydrogen, and iron and steel. Currently, UK manufacturers are subject to carbon pricing for direct emissions under the UK Emissions Trading Scheme. This includes some of the CBAM administrative requirements, including those on embodied emissions and the monitoring and verification of emissions data. The consultation is open for responses until 21 May 2026. EUROPE EU announces measures to tackle fossil fuel energy crisis The European Commission has launched a series of measures titled ‘AccelerateEU’ to tackle the current fossil fuel energy crisis by accelerating the shift to clean, homegrown energy. Read more here.  EU and partners sign the Global Green Bond Initiative Fund to mobilise up to €20 billion in investments for sustainable infrastructure The European Union and partner development finance institutions have signed the Global Green Bond Initiative (GGBI) Fund, a new public-private investment tool to mobilise up to €20 billion of private capital for sustainable infrastructure projects in low and middle-income countries. One of the three pillars of the Global Green Bond Initiative, the GGBI Fund is a flagship of the European Union's Global Gateway strategy. It aims to unlock up to €3 billion in green bonds in partner countries and help finance activities that support climate and environmental goals. The fund will invest exclusively in bonds issued in primary markets, prioritising first-time issuers like governments, local authorities and businesses, and is expected to crowd in up to €2 billion from European and international private investors, leveraging approximately €1 billion in equity from public investors. The fund will be managed by Amundi, the largest European asset manager. EU Parliament’s 2027 budget priorities: social cohesion, competitiveness, security Members of the European Parliament have backed a report setting out the Parliament’s 2027 EU budget priorities. Priorities include social cohesion, competitiveness and security. In the text, MEPs highlighted ‘cohesion policy’ as a key investment tool to boost competitiveness and stress that the 2027 budget should support critical infrastructure and transport. Tackling labour shortages, skills gaps and demographic pressures must also remain a priority, alongside increased support for SMEs and startups. The EU’s commitment to climate neutrality by 2050 was also reaffirmed, and there were calls for increased investment in energy efficiency, the circular economy, biodiversity and digital innovation. The Commission is expected to present its proposal for next year’s budget in June. Parliament's negotiators will use the guidelines as the basis for their discussions with the Council and the Commission. The budget needs to be agreed between the Council and the Parliament by the end of this year. EU proposes measures to reinforce carbon market The EU Commission has announced “a first concrete measure” to reinforce the European Union Emissions Trading System (EU ETS), which it states needs to be modernised and more agile in light of recent challenges. It has proposed an amendment to the Market Stability Reserve Decision to strengthen the instrument that ensures a stable, well-functioning carbon market. The proposal will be submitted to the European Parliament and the Council and would need to follow the ordinary legislative procedure (co-decision) for adoption. A comprehensive review of the EU ETS will follow in July 2026. This will include any relevant adjustment to keep the MSR fit for purpose in the next decade.   EFRAG’s own VSME report publishes EFRAG, the organisation that develops EU Sustainability Reporting Standards (ESRS) and the Voluntary Standard for SMEs (‘VSME’) has published its own VSME report this week. The report showcases how sustainability is embedded across EFRAG’s activities, governance, and internal practices. It also demonstrates the practical application of the VSME Digital Template and Converter, which delivers structured, tagged disclosures in Inline XBRL format. EFRAG will update, in the following months, the VSME Digital Template and Converter for the public to include the customisation features it has used for this report. In a press release announcing the publication of the report, EFRAG described the process as providing valuable insights into common challenges faced by SMEs and non-profit organisations, helping shape future guidance and implementation support. The VSME is a simplified standard that was developed by EFRAG to make it easier for SMEs to respond to requests for sustainability information from large companies and financial institutions which are subject to mandatory reporting under the Corporate Sustainability Reporting Directive (CSRD) and which have such SMEs in their value chains. Barriers and enablers to scaling circular business models Two briefings have been published by the European Environment Agency that focus on the circular economy. ‘Scaling circular business models in Europe’ looks at the barriers and enablers to scaling circular business models, and ‘Just transition to a circular economy’ examines how integrating justice into circular economy policies can strengthen environmental and social outcomes - important as a growing circular economy will lead to changes in Europe’s jobs market. The briefings are the first two in a series of reports the EEA is producing this year ahead of the Commission’s EU Circular Economy Act which aims to accelerate the transition to a more circular economy for Europe. It aims to establish a Single Market for secondary raw materials, increase the supply of high-quality recycled materials and stimulate demand for these materials in the EU which in turn will help to boost the EU’s economic security, resilience, competitiveness and decarbonisation. WORLD ISSB to develop voluntary requirements for nature disclosures rather than new standalone nature standard The International Sustainability Standards Board (ISSB) has agreed to propose voluntary requirements for nature-related disclosures in the form of an IFRS Practice Statement, rather than a standalone standard or amendments to IFRS S1 and S2, with consultation targeted for October 2026. The decision follows the ISSB’s work to specify aspects about material information on nature-related risks and opportunities for companies to disclose, drawing on the Taskforce on Nature-related Financial Disclosures (TNFD) framework. Critics of the decision reportedly argue that introducing a voluntary approach overlooks the material risks affecting over half of global GDP, while the ISSB has stressed that the decision is not indicative of the importance that it attributes to nature topics, but to prevent disruption from the implementation of the existing ISSB standards. DID YOU KNOW? The SEAI Energy Awards 2026 are now open for applications. These awards recognise and reward excellence in all aspects of energy efficiency and renewable energy. Organisations across Ireland apply every year and some wonderful entries make it to the shortlist. Apply now to one of 11 categories. RESOURCES Integrating environmental and social risk essential to safeguard long-term resilience, report finds Cambridge Institute for Sustainability Leadership (CISL) has published a report on the intersection of environmental and social risks for investors. This report introduces a practical, systems-based framework to help investors assess how climate and social risks compound across geographic scale, value chains and socio-demographic vulnerabilities. Building on the Taskforce on Inequality and Social-related Financial Disclosures (TISFD), it translates emerging thinking into actionable guidance for investment decision-making. In its press release CISL commented: “The message is clear: siloed risk frameworks are no longer fit for purpose. Integrating environmental and social risk is essential not only for sustainable development, but for safeguarding long-term resilience.” Mapping social and environmental due diligence legislation The OECD has published a report mapping 21 legislative measures related to human rights, labour and environmental due diligence across 11 jurisdictions. As governments increasingly expect businesses to carry out human rights, labour and environmental due diligence in their operations and supply chains, there are ever greater implications for businesses and policy makers to understand the similarities and differences in scope and approach of policies on due diligence. This report explores the scope and expectations of different measures compared to the six-step due diligence framework from the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct and the OECD Due Diligence Guidance for Responsible Business Conduct. Climate litigation as a financial risk: evidence from a global survey of equity investors The Grantham Research Institute on Climate Change at London School of Economics and Political Science has published a paper on climate litigation as a financial risk, with evidence from a global survey of equity investors. The paper aims to address the issue that little is known about how investors perceive and process climate litigation risks, despite the sharp increase in recent years in change litigation against governments and companies, as well as and the imposition of material financial costs on companies by climate litigation. This occurs – the paper suggests – even when it does not lead to large direct penalties. Drawing on a global survey of 811 institutional equity investors and analysts, the authors find most investors view climate litigation as a material financial risk but differ on when they believe it becomes relevant and how it affects companies. It also finds that clearer corporate disclosure on legal exposures and climate governance could reduce investor uncertainty when assessing climate litigation risk, with direct implications for environmental disclosure frameworks and financial supervision. 50 Investible Opportunities for a New Nature Economy A report from the World Economic Forum highlights 50+ ‘investible opportunities’ it claims are already generating cost-savings or revenues for businesses across the real economy. The report addresses the recognition by businesses of the opportunities a nature-positive economy can offer while feeling the adverse impacts of nature loss. From precision agriculture to battery recycling to bio-based materials, new ways of doing business are delivering both long-term resilience and short-term gains. Accountancy Europe Sustainability Update – April Accountancy Europe has published its April Sustainability Update, including the following highlights: Accountancy Europe’s new SME sustainability hub, which links to key information that SMEs and their accountants need to effectively deal with sustainability requests and also to improve their business’ sustainability and sustainability reporting. ESAs guidelines on ESG risks EU due diligence law scaled back, new data shows ARTICLES Understanding CBAM and its implications (Accountancy Ireland – Briefly) CBAM enters its next phase (Accountancy Ireland) Social risk moves to the top of the ESG agenda (Accountancy Ireland – Briefly) Preparing for the EU’s CSDDD regime across your value chain (Accountancy Ireland) Ireland considers designating private offshore wind facilities as critical infrastructure (Irish Times) Energy independence—a pressing imperative for Europe’s future (Accountancy Ireland) How a cargo bike can save you a fortune in motoring costs (Irish Times) Cavan publican aims to run premises using power harnessed from river, in world first (Irish Times) EV ownership at ‘tipping point’ in many parts of the world, experts say (Financial Times) Climate Change Is Already Showing Up in the Cost of Living (Bloomberg) Green Tech Investments Hit a Record $2.3 Trillion Last Year (Bloomberg) EVENTS Enterprise Ireland, Sustainability Kickstarter Workshops A half‑day workshop series designed to support business leaders in recognising the strategic importance of sustainability and decarbonisation. The sessions provide practical skills to integrate core sustainability principles, identify competitive opportunities, and build actionable plans to meet rising customer expectations for sustainable products and services.  8 May 2026 | Half‑day workshop  ; 23 June 2026 ICAEW, Sustainability for business 2026 This in-person event brings together business leaders – especially from SMEs – to explore how sustainability is shaping the UK business landscape and influencing resilience, competitiveness, and access to capital. Through a mix of interactive sessions, expert discussions and real-work examples, the event will help businesses understand the practicalities of sustainability such as related risks and opportunities, how peers are responding, and what this means for long-term planning and decision-making. In person, Chartered Accountants' Hall, Moorgate Place, London EC2R 6EA, 11 May, 2026, 08:00 - 12:00       ICAEW, What determines the price of energy - factors, forecasts and future This webinar will explore the latest trends in energy prices, examining why volatility persists and what this means for businesses planning for the short and long term. Equip your organisation with the insight and tools needed to navigate today’s fast‑changing energy landscape effectively by gaining a clear overview of the UK’s current energy mix and how it is expected to evolve over the coming years, driven by policy, market forces and the transition to net zero. Also considered will be the practical implications of these changes for organisations, helping you better understand the risks, opportunities and strategic considerations shaping the future energy environment. Virtual, 20 May 2026, 13:00 - 14:00 UN Global Compact Network Canada, Annual Sustainability Reporting Peer Review Group (ASPiRe) — Now Open for Registration This structured peer review programme offers an exceptional opportunity for sustainability and communications teams to strengthen the quality and credibility of their sustainability disclosures — including Communications on Progress (CoPs). Registration Deadline: 5 June 2026 | Programme: July–October 2026 Sustainability Centre You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

  The European Commission has launched a series of measures titled AccelerateEU to tackle the current fossil fuel energy crisis by accelerating the shift to clean, homegrown energy. Measures outlined by the AccelerateEU proposal include close coordination between Member States, the establishment of a new Fuel Observatory to track transport fuel developments, and the adoption of a State Aid Temporary Framework to allow national governments to provide, among other things, emergency measures to support the most exposed economic sectors. It also proposes an acceleration of the shift to homegrown clean energy through an Electrification Action Plan, to be presented by the summer, with targets and measures to remove barriers to the electrification of the industrial, transport and building sectors, as well as measures to improve the grid system. The Commission has also pledged to assist Member States to make maximum use of available EU funding for the energy transition. While significant resources are available at EU level, the amount required (€660 billion a year until 2030) will not be met by public money alone. Therefore, to mobilise private investments, the Commission adopted a Clean Energy Investment Strategy in March 2026, and will organise a Clean Energy Investment Summit to bring together the financial services industry, including major institutional investors, industrial leaders, project developers and public financiers to accelerate private financing. All are designed to help Member States and local authorities provide immediate support to protect households and industries from what the EU’s statement describes as “price volatility caused by dependence on imported fossil”. Although it stresses that EU’s energy security is currently not at risk, the short-term and longer-term measures are designed to support the EU’s goal to achieve energy independence, through a decarbonised and resilient energy system based on homegrown clean energy and electrification. Commenting, Ireland's EU Commissioner Michael McGrath, reportedly stated that “Reducing our dependence on imported fossil fuels is in all our shared interests”. Earlier this month, the European Commission positively assessed Ireland's fourth payment request for €249 million under the Recovery and Resilience Facility (RRF), the centrepiece of NextGenerationEU. The reforms and investmentstied to this payment request aim to drive positive change for citizens and businesses in Ireland in the areas of railway electrification, e-health, public administration, higher education, re-skilling and up-skilling, and renewable energy deployment. Flagship measures in this payment request include accelerating offshore wind energy, digitalising healthcare finance and upskilling for the green and digital transition. The Commission has now sent its preliminary assessment of Ireland's fulfilment of the milestones and targets required for this payment to the Council's Economic and Financial Committee (EFC). The payment to Ireland can take place following the EFC's opinion, and the adoption of a payment decision by the Commission. An interactive map of projects financed by the RRF, as well as the Recovery and Resilience Scoreboard, is available online. 

  The Government has announced details of the Road Transporters Support Scheme (RTSS) for hauliers, ‘own account’ road haulage operators and bus and coach operators, and the new Fuel Support Scheme for farmers, agricultural contractors and fishers, worth a combined €220 million. The measures aim to provide financial support to help meet the challenges posed by increased fuel costs arising from the war in the Middle East. The new schemes are part of an overall spending commitment of €755 million to subsidise the rising cost of fuels made by the Government since the war in Iran commenced in late February. The RTSS will initially apply for March 2026, with further payments for April and May depending on average national diesel prices exceeding €1.90 per litre. This threshold reflects the point at which fuel costs become unsustainable for many commercial transport operators. The fuel support scheme for farmers and farm and forestry contractors will cover the months of March up to the end of July and is an income support scheme aimed at those most impacted by the sudden increase in the cost of Market Gas Oil (MGO).  Applications can be made through an online portal, expected to open in May. The Government is also launching a communications campaign designed to support householders and businesses to manage their energy costs. Business-specific energy advice can be found here.