Reductions in employee and self-employed national insurance contributions ("NICs") and the abolition of Class 2 NIC were the key announcements. And from 2024/25, the Government will no longer require individuals earning more than £150,000 whose only source of income is income taxed through PAYE to file a Self-Assessment return.   Employee NICs  Class 1 employee NICs are to be reduced by 2 percent from 12 percent to 10 percent from 6 January 2024. In a meeting with HMRC last week, Chartered Accountants Ireland flagged the short time period that software providers and payroll teams have to implement this 2 percent reduction which has come at an already very busy point in the tax year.  Self-employed NICs  From 6 April 2024, the main rate of Class 4 NIC, which is applied to trading profits between £12,570 and £50,270, is being reduced by 1 percent from 9 percent to 8 percent. And Class 2 NIC is being abolished from 6 April 2024.   From the same date, self-employed taxpayers with profits above £12,570 who will no longer be required to pay Class 2 NICs, will continue to receive access to contributory benefits, including the State Pension. Those with profits between £6,725 and £12,570 will continue to get access to contributory benefits, again including the State Pension, through a National Insurance credit without paying NICs as they do currently. Those with profits under £6,725 and others who pay Class 2 NICs voluntarily to get access to contributory benefits will continue to be able to do so.    According to the main Autumn Statement publication, the cuts to Class 4 and Class 2 NIC taken together amount to a tax saving of £350 a year for the average self-employed person on £28,200 with some two million self-employed individuals expected to benefit.   The Government will also set out next steps on Class 2 reform next year. As part of this, the intention will be to protect the interests of the lower paid self-employed who currently pay Class 2 NICs voluntarily to build entitlement to certain contributory benefits.  2024/25 allowances  The blind person’s and married couple’s allowances are being increased in 2024/25 to £3,070 and between £4,280 and £11,080, respectively. All other allowances remain frozen as announced at the Autumn Statement in 2022.  NICs rates and thresholds   The Government is freezing the lower earnings limit (“LEL”) and the small profits threshold (“SPT”) at 2023/24 levels in 2024/25. For those paying voluntarily, the Government is also freezing Class 2 and Class 3 NICs rates at their 2023/24 levels in 2024/25.   The LEL will remain at £6,396 per annum (£123 per week) and the SPT will remain at £6,725 per annum in 2024/25. The main Class 2 rate will remain at £3.45 per week, and the Class 3 rate will remain at £17.45 per week in 2024/25. This does not affect existing arrangements for payments of voluntary Class 2 or Class 3 NICs connected with previous tax years.   Employer NICs relief for employment of veterans  The Government is extending the NICs relief for employers of eligible veterans for one year into 2024/25. The relief means businesses pay no employer NICs on annual earnings up to £50,270 for the first year of a qualifying veteran’s employment in a civilian role.  

The Minister for Finance, Michael McGrath TD, has welcomed the commencement of four amendments to the Key Employee Engagement Programme (KEEP) as introduced in Finance Act 2022, following receipt of approval of State aid from the European Commission. KEEP was introduced in 2018 to enable unquoted companies to attract and retain key employees, using share based remuneration.   KEEP is an exemption from income taxes on any gain realised on the exercise of a qualifying share option. Instead, the gain will be subject to Capital Gains Tax (CGT) on a subsequent disposal of the shares. The amendments commenced reflect stakeholder feedback and provide for the following:  The extension of the scheme to the end of 2025.   Capital gains tax treatment can apply to a company buyback of shares acquired under KEEP.  The limit for the total market value of issued but unexercised qualifying share options for qualifying companies and qualifying holding companies is increased from €3 million to €6 million.  KEEP now applies to ordinary fully paid-up shares, not just to new ordinary fully paid up shares, so that existing shares a company holds can qualify.  Commenting on the commencement, Minister McGrath stated:  “I am delighted to announce that I have commenced the four outstanding KEEP amendments contained in Finance Act 2022, following receipt of State aid approval from the European Commission.  KEEP is a focused scheme aimed at improving the attractiveness of the Irish SME employment offering. It recognises that the improved competitiveness of Irish SMEs supports the creation and maintenance of employment, which in turn supports economic growth.  These amendments extend and expand the current KEEP scheme, and are based on my Department’s continued engagement with stakeholders to ensure that the scheme is working to support Irish SMEs.” 

The merger of the SME and large company research and development (“R&D”) tax relief schemes, and the making permanent of full expensing for businesses were the main changes to business taxes. Merger of R&D tax relief schemes  Continuing with the theme of reform to the UK’s R&D tax relief regimes which began in the 2022 Autumn Statement, the SME and large company regimes are to be merged, as planned, from 1 April 2024. However, the Chancellor did not specify the rate(s) of relief which will be available under the merged scheme, which is likely to be announced in the 2024 Spring Budget.  The merged scheme will offer a taxable R&D expenditure credit, based on a percentage of R&D expenditure, that will be able to be offset against a company’s tax liability or, subject to some adjustments, be paid in cash to the business via a payable tax credit.   In our submission to the House of Lords Finance Bill Sub-Committee inquiry into draft Finance Bill 2023/24, Chartered Accountants Ireland recommended that the commencement date for the introduction of a single unified scheme be deferred beyond 2024 to allow for a longer period of consultation to be undertaken on the potential options available.  It was also announced by the Chancellor last week that under the merged R&D scheme, payments of the merged scheme payable tax credit to loss making companies will be reduced via a notional tax. The aim of this is to ensure that the overall tax benefit is similar to that available to profit making companies.   This will be done by calculating the net amount at Step 2 using the rate applicable to the taxpayer (either the small profits rate (“SPR”), currently 19 percent, or the main rate (25 percent)), by applying the SPR to loss making companies. Companies will also be able to off-set the amount withheld against tax in future years.   According to the publications, this change in the rules for the merged scheme is designed to ensure that loss making companies receive more cash benefit upfront, compared to the position set out in the July policy paper.  R&D intensive scheme  The intensity threshold in the R&D intensives scheme is to be reduced from 40 percent to 30 percent for accounting periods that commence on or after 1 April 2024. A one-year grace period will also be introduced which will allow companies who dip under the 30 percent threshold to continue to receive relief as an R&D intensive company for a further year.  More details of the changes to R&D tax relief are available in a HM Treasury policy paper with confirmation that all changes come into effect in respect of accounting periods beginning on or after 1 April 2024.  R&D tax reliefs - removing nominations and voiding assignments   From 1 April 2024, R&D claimants will no longer be able to nominate a third-party payee for R&D tax credit payments, subject to limited exceptions. In addition, from 22 November 2023. no new assignments of R&D tax credits are possible. This means that in most circumstances payments of R&D tax credit claims will be paid directly to the company in order to ensure that they “have full oversight of the claim and receive payment more quickly”. This will be legislated for in the Autumn Finance Bill 2023.   Closure of the R&D review   At Spring Budget 2021, the Government launched a review of R&D tax reliefs. The Government is now concluding that review with the announcement of the merged scheme.   The Autumn Statement publications do refer to the potential that further action may be needed to tackle high levels of non-compliance in R&D tax reliefs, hence it is expected that HMRC will be publishing a compliance action plan in due course.   The Government will also continue working with industry to develop the enhanced support for R&D intensive SMEs and will also consider if further simplifications can be implemented.  Full expensing for companies  Full expensing was announced in the 2023 Spring Budget and replaced the 130 percent super deduction which came to an end on 31 March 2023. The relief is only available to companies incurring expenditure on new plant and machinery (with some exclusions) and was originally scheduled to last for a three-year period until 31 March 2026. The Chancellor announced last week that full expensing is being made permanent.  Although this was badged as the biggest tax cut in modern British history, in reality it is only of real benefit to larger companies who have the capacity to invest in more than their annual investment allowance limit, which already provides 100 percent relief for such assets, up to a maximum of £1 million. The Office for Budget Responsibility expects this to increase business investment by £3 billion per year.   At present, assets for leasing remain excluded from full expensing. However, the Government is to continue to consider whether there is a case to extend full expensing to leasing hence a technical consultation will be published in due course to seek input on draft legislation which will also consider whether error and abuse risks can be appropriately mitigated.  A technical consultation is also expected to be launched on wider changes to simplify the UK’s capital allowances legislation.  Tax relief for training costs  HMRC is also to rewrite guidance around the tax deductibility of training costs for sole traders and the self-employed. This aims to ensure that taxpayers can be confident that updating existing skills or maintaining pace with technological advances or changes in industry practices, are allowable costs for tax purposes.  Creative sector tax reliefs  The Government expects further growth and a rise in employment as creative industries embrace new technologies. To maximise the benefits of this, the Government will further boost the international competitiveness of tax incentives for the UK’s world-leading visual effects sector by increasing the generosity of the audio-visual expenditure credit for visual effects expenditure. Work will begin with industry on how best to design this with the intention of implementing changes to the tax relief from April 2025.  As part of this, the Government has published a call for evidence on recent trends in the visual effects industry. This aims to inform the design of additional tax relief for expenditure on visual effects, which the Government intends to deliver via the audio-visual expenditure credit. The Government intends to consult on the detailed policy design of further support and intends to implement changes to this expenditure credit from April 2025.   As previously announced, animated feature film will be eligible for a 5 percent uplift in relief under the audio-visual expenditure credit.   The Government has also amended the proposed definition of a documentary. The new definition is designed to align with the guidance used by the British Film Institute and will apply to the audio-visual expenditure credit, which will be legislated for in the Autumn Finance Bill 2023.   The proposal to cap the relief that companies can receive on connected party transactions is also being amended. Companies will now be required to disclose connected party transactions and charge connected parties at an arm’s length price. This will also be legislated in the Autumn Finance Bill 2023.   Simplification for smaller businesses  As announced in Spring 2023, the Government is undertaking a systematic review of guidance and key forms for small business and has already begun to implement some improvements including enhanced guidance when checking if you need to submit a self-assessment tax return, new interactive guidance to help businesses register for self-assessment, and improved guidance designed to make it easier to report VAT errors.   Expanding the cash basis  Following a consultation at Spring Budget 2023, the Government is expanding the cash basis for unincorporated businesses. These changes will take effect from 6 April 2024, for 2024/25 and will be included in the Autumn Finance Bill 2023. More details are set out in a policy paper which confirms that the cash basis will be the default method of calculating the tax adjusted trading result, meaning an election will no longer be required. Hence all unincorporated businesses will use the cash basis unless they make an election to use the accruals basis instead.  Currently, businesses are only able to join the cash basis if their turnover is less than £150,000, and they are forced to leave in certain circumstances, including where turnover exceeds £300,000. The turnover restriction will be removed entirely from 6 April 2024.  Chartered Accountants Ireland responded earlier this year to this consultation and supported the expansion of the cash basis but recommended that business should have a choice and be able to choose which basis best suits them hence it is pleasing to see that the Government have taken this on board and will allow businesses to opt out of the default cash basis.   Oil and gas fiscal regime   Alongside confirming that the Energy Profits Levy (“EPL”) will end no later than 31 March 2028, the Government published the conclusion to the review of the oil and gas fiscal regime in a collection of documents which sets out an oil and gas fiscal regime package covering the short, medium, and longer term.  This includes setting out principles for the tax treatment of future oil and gas price shocks after the end of EPL and targeted support for the energy transition through allowing relief for payments made by oil and gas companies into decommissioning funds in relation to oil and gas assets that are repurposed for certain uses. Legislation will also remove the receipts from the sale of these assets from the EPL.   

Although not featured in the Chancellor’s speech, buried in the Autumn Statement 2023 publications is the outcome of HMRC’s recent small business review. This comprises what is referred to as a “package of changes to simplify the design of Making Tax Digital” (“MTD”). A separate corporate report with more detail was also published which provides details of further work and next steps. More information is also available in an email from HMRC. The package of changes announced includes maintaining the current MTD turnover threshold at £30,000 and design changes which aim “to simplify and improve the system”. These changes will take effect from April 2026 when MTD for income is initially scheduled to commence for self-employed business and landlords with turnover of more than £50,000. Earlier this year, Chartered Accountants Ireland met with HMRC to discuss the review and highlighted several concerns, including the need for HMRC to increase the exemption threshold. We are pleased to see that HMRC has decided, at present, to maintain the turnover limit at which MTD will be mandated to £30,000, effectively increasing this from the original exemption limit of £10,000. Taxpayers with turnover from £30,000 to £50,000 are still mandated to join MTD from April 2027. However, the Government will keep under review the turnover less than £30,000 population.  The MTD changes announced last week specifically:- aim to simplify the requirements for all taxpayers providing quarterly updates, and for taxpayers with more complex affairs, such as landlords with jointly owned property; remove the requirement to provide an End of Period Statement;  exempt some taxpayers, including those without a National Insurance number, from MTD; and  enable taxpayers using MTD to be represented by more than one tax agent. 

This Wednesday, the Global Forum will be meeting to discuss developments in the fight against offshore tax evasion. The annual plenary meeting is taking place in Lisbon, Portugal and will be live on OECD WebTV from 9.00am Irish time.

New data from the OECD suggests that 37.1 percent of global net profits are taxed at effective tax rates (ETRs) below 15 percent. Their research shows that 56.8 percent of all global profits taxed below 15 percent arise in high-tax jurisdictions. It is suspected that this is achieved through tax incentives and targeted concessions.

The Government has agreed a series of incremental increases in the rate of Pay-Related Social Insurance (PRSI) contributions for all employers, employees and the self-employed. The stated purpose of the increases is to replenish the Social Insurance Fund and to support the retention of the State pension age at 66 years. The rate of PRSI for all classes will increase by 0.1 percent from October 2024, followed by a further increase of 0.1 percent in 2025. There will be further increases of 0.15 percent in both 2026 and 2027 followed by an increase of 0.2 percent in 2028. 

Azerbaijan has become the latest country to join the BEPS Convention. The BEPS Convention is the key instrument for updating double tax agreements and reducing tax avoidance by multinational enterprises. The Convention also enhances dispute resolution between countries.

Retailers face escalating cyber security challenges during peak events such as Cyber Monday. Will O’Brien outlines four steps to protect customer data this holiday season In the retail sector, cyber security often lags behind other sectors regardless of the retailer’s size or value. In the short-term, this can lead to some initial minor inconveniences, but if left unattended, it can manifest into serious issues that impact the organisation’s brand, reputation and customer loyalty. The security challenge During the peak Christmas consumer events of Black Friday and Cyber Monday, the retail sector sees a sharp uptake in business. As a result, its value to malicious actors also increases. To leverage this busy period, cybercriminals use unsophisticated phishing campaigns to gain access and steal data. when a retailer’s ‘accounts and billing’ function is in full swing during the holiday season, for example, they are more likely to fall victim to a phishing attack. While some retailers have reasonable controls in place to protect against these attacks, many rely heavily on insecure third parties to fulfil critical business functions. According to PwC’s 2023 Digital Trust Insights Survey, supply chain risks have become a big focus for regulators and organisations, with senior executives in Ireland identifying increased regulatory scrutiny as one of the top five impacts on their business since 2022. Without conducting the correct level of cybersecurity due diligence on third parties, retailers can open themselves up to cyber-attacks by providing third parties with access to their data. If these third parties fall victim to cyber-attacks, the organisation’s data – through payroll, accounts and shipping, for example – may be at risk. Despite the third party being at fault, the data controller (the organisation) is subject to fines and reputational impact. Defending consumer data Organisations can protect their digital assets by understanding the retail-specific cyber threats and associated remediation activities. 1. Education and awareness  Your people are your first line of defence against phishing campaigns. All staff should be educated on security procedures and aware of attack methods. A robust cybersecurity education and awareness programme is the best way to achieve this. You should tailor this programme for your organisation by identifying the critical threats and customising the content to address these threats. 2. Third-party risk management Third-party risk management (TPRM) is the process of analysing and minimising the cybersecurity risks associated with outsourcing to third-party vendors or service providers. It involves effective selection, due diligence, contracting, ongoing monitoring and the correct termination processes. 3. Malware and ransomware prevention Anti-malware and ransomware detection technologies can help to reduce the risk of a severe cyber attack likely to cause operational, reputational and financial damage to your organisation. Detection and response tools can be used to identify malware and limit the blast radius of the attack, for example. 4. Incident management and response With organisations facing more regulations than ever, the capacity to respond to a data breach quickly and effectively has never been so important. Senior executives should test their incident response capabilities and muscle memory with simulated strategic and tactical tabletop exercises. Incident response plans should be enhanced based on the learnings from these exercises. This documentation can include communication statements, runbooks for technical responses to ransomware, and breach notification processes for notifying the Data Protection Commission of a personal data breach. Implementing these controls can help to mitigate the financial and reputational impact of a security breach. Prioritisation You cannot eliminate cyber risk, but prioritising retail-specific cyber threats can help to mitigate the potential risks and damage. An effective cybersecurity programme will ensure that you can prepare, withstand, recover and learn from malicious attacks and security events online. Will O’Brien is Director of Cyber Practice at PwC

Gender allyship can help to support workplace equity, but only when it is genuine and meaningful. Andrea Dermody offers her advice on how to embed a culture of true support and allyship Harvard Business Review defines gender allyship as the purposeful collaboration of dominant group members (men) with women to actively promote gender equality and equity in their personal lives and the workplace through supportive and collaborative relationships, acts of sponsorship, and public advocacy to drive systemic change. While allyship can be a powerful tool for creating inclusive and equitable environments, however, there are instances in which it might not be as effective as intended. Research has suggested a stark perception gap between what men think they are doing to support women versus what they are actually doing.  The recent Allyship-In-Action study of more than 1,400 men and women found 78 percent of men said they had personally given a woman credit for her contributions and ideas in a meeting in the previous year. Just 49 percent of the women in the study reported witnessing such behaviour during that period. Despite good intentions, the effectiveness of men’s allyship efforts may be limited by several factors, including: Superficial engagement: Some allyship efforts may lack genuine commitment and understanding of the issues at hand.  Tokenism and performative actions: Both can create an illusion of support without leading to meaningful change. Lack of accountability and measurement: Allyship efforts can lack direction and fail to produce tangible outcomes without clear accountability and measurable goals. Resistance to change and inclusivity: Resistance from certain individuals or groups within the organisation can hinder effective allyship efforts.  In short, allyship is more than just ‘talking the talk’. It’s about fundamentally changing attitudes and behaviours. Simply calling yourself an ally to any person of an underrepresented group misses the point of allyship altogether.  Steps to successful allyship The secret to successful, long-lasting allyship lies in the combination of interpersonal action (developing awareness and motivation) and public action to create accountability and transparency. Here are five steps you can take to help allyship succeed in your organisation.  Educate yourself: Don’t ask people from marginalised backgrounds to take on the emotional, psychological and physical burden of educating you. Take responsibility for yourself. This list of resources from the University of Kent is a great place to start. Listen: Actively listen and amplify the voices of the communities for which you are trying to be an ally. Without listening, you have the danger of venturing into ‘saviour’ territory, where you assume you know more about what marginalised groups need than those in that group. Your actions become self-serving, and you benefit more than the groups you are trying to help.  Reflect on your privileges: The word “privilege” can be polarising, but it is essential to recognise the privileges you have to be an ally for others. Use your voice to make the voices of marginalised people heard. Use your privilege and influence to advocate for change and promote inclusivity. Stand up against discriminatory practices, biases and systemic injustices.  Mentor others: As an ally, showing your support through mentoring programmes is a great idea. By getting to know your mentee as an individual, you can learn about their experiences and perspectives. The more you know and understand, the better equipped you will be to help. See something, say something: Speak out in support of marginalised groups and actively challenge discriminatory behaviours and policies within your sphere of influence. If you see someone being discriminated against, support them at that moment, not later. Intervene even if the targeted individual or community is not present. By demonstrating that you don’t find it appropriate, you can help change the culture and create a more inclusive and equitable society.  Remember, though, that allyship is an ongoing journey that requires continuous self-reflection, learning and active engagement – it’s playing the long game for success. Andrea Dermody is a diversity and inclusion consultant, speaker and coach at Dermody

New approaches to infrastructure investment will be essential if Northern Ireland is to leave a positive economic and climate legacy for future generations, writes Kaine Lynch Infrastructure is a fundamental building block of society. It brings us together, protects the environment and supports economic growth. The benefits of enhanced infrastructure are more important today than ever before, given the need to boost the economy in Northern Ireland (NI) and meet legislative obligations concerning climate change. NI’s neighbours are making significant headway in relation to infrastructure. Earlier this month, the National Infrastructure Commission (NIC) in London published its second National Infrastructure Assessment (NIA) while the Irish Government unveiled plans for an Infrastructure, Climate and Nature Fund. In contrast, NI’s Department of Finance (DoF) recently commenced a consultation on potential revenue-raising measures necessitated by extreme pressures on public finances. NI’s lack of wastewater infrastructure constrains development, demand for social housing is outstripping supply, public transport usage lags behind the rest of the UK and the road network is deteriorating rapidly. These issues won’t resolve themselves. If we don’t act, NI’s infrastructure will continue to deteriorate, and our children will inherit an even larger infrastructure deficit.  However, there are several actions NI can take to address this. Long-term strategy Critical to the success of any endeavour is a plan. While there are several infrastructure-related strategies, NI does not have a cross-sectoral one akin to the UK’s National Infrastructure Strategy or the National Development Plan in Ireland. Like the approach adopted by the NIC, the development of a plan must begin with a clear understanding of NI’s current baseline and relevant sectoral priorities. This evidence-based approach will allow the region to push beyond time horizons associated with political cycles and focus on the legacy we leave for the next generation. Prioritisation framework Given NI’s infrastructure deficit, it is inevitable that the development of an infrastructure plan will identify a longlist of challenges and an unaffordable list of potential interventions. Challenges must be systemically triaged to arrive at a realistic shortlist. The process should consider the maintenance, renewal and resilience of NI’s aging assets and constructing new ones. The process of triaging will require a single set of carefully developed criteria that identify relative priorities across the programme. It will also be necessary to apply the criteria strictly and consistently. Without this uniform approach, it will be impossible to robustly make difficult decisions to invest in one thing over another. The analysis will, of course, also identify lower priorities. Existing projects aimed at addressing these should be carefully considered. Continuing to develop lower priority projects will result in fewer remaining resources to focus on addressing those of higher importance. Commercial models In addition to prioritisation, there is a need to critically examine how NI’s financial envelope for infrastructure can be expanded. The recently published NIA identifies that private sector investment will account for around 50 percent of total infrastructure investment over the next two decades. However, NI remains heavily reliant on public sector funding. Opportunities exist to chart a new course and better leverage private sector investment, whether it be to develop NI’s electric vehicle charging network or increase housing stock. The potential introduction of revenue-raising measures as outlined by the DoF would pave the way for reduced reliance on the public purse and unlock potential lending opportunities to support ‘invest to save’ initiatives. The UK Infrastructure Bank, established in 2021, presents an opportunity for the Executive and councils to temporarily expand their financial envelope. The Executive can also access Reinvestment and Reform Initiative borrowing at even more competitive rates. Delivery structures NI has immensely talented infrastructure professionals. Individuals are limited, however, and expertise is dispersed across the public sector. These factors make it difficult to deploy the right skills to the right place at the right time, reducing the likelihood of project success. The UK Government Commercial Function and the Infrastructure and Projects Authority are models in which skills and resources are held centrally but deployed to departments to support delivery. Implementing a similar approach in NI would allow the pooling of limited skilled resources, develop deep infrastructure delivery expertise and deploy resources to where they are needed most while ensuring funding departments retain overall accountability and control. Kaine Lynch is Director of Government and Infrastructure Advisory at EY. You can read more here.

  In this week’s Sustainability/ESG bulletin, read about Chartered Accountants Ireland’s involvement in Climate Finance Week Ireland 2023. Also covered is the endorsement by the European Commission of Ireland's revised recovery and resilience plan, carbon emissions intensity statistics from Northern Ireland, energy and climate developments in the UK, a €4 billion call for net zero technology proposals under the EU’s Innovation Fund, as well as proposals on pollution, packaging and the circular economy, news from the UN’s Emissions Gap Report, as well as Technical Updates, articles and upcoming events. Chartered Accountants Ireland at Climate Finance Week 2023 Chartered Accountants Ireland partnered with the International Sustainable Finance Centre of Excellence (IFSCOE) again this year for Climate Finance Week Ireland 2023. Now in its fifth year, this week-long summit comprises both in person and virtual events about advancing financial sustainability in Ireland. The Institute’s event – You’re in Scope because They’re in Scope’ demonstrated the impact of the Corporate Sustainability Reporting Directive (CSRD) on value chains in Ireland, regardless of whether companies – such as SMEs – are directly in scope of the new Directive. Institute’s Professional Accounting Lead Dee Moran outlined the CSRD and the related standards, the ESRSs, after which Institute’s Sustainability Officer Susan Rossney interviewed David Connolly - Senior Manager, EY Climate Change and Sustainability Services and Donna Wilson - Head of ESG Transformation, AIB. Watch back here Ireland's revised recovery and resilience plan endorsed by European Commission The European Commission has this week positively assessed Ireland’s revised Recovery and Resilience Plan. The plan, which is now worth €914 million in RRF grants, contains a broad scope of green measures in areas including energy renovation for public buildings, the decarbonisation of enterprises, and the promotion of sustainable transport. It will also continue to help strengthen economic and social resilience of Ireland through support for employment by the means of upskilling and an increase in the supply of social and affordable housing, among other things. DETE, Building Better Businesses Midlands Park Hotel, Portlaoise The next event in the Department of Enterprise, Trade and Employment (DETE) ‘Building Better Business’ events will take place on Thursday, 7 December in Dublin. These events aim to help businesses navigate the green journey and boost business performance through digital transformation. The event will take place in the Convention Centre Dublin from 8.30am – 1.30pm. Register here. Carbon emissions intensity in Northern Ireland The Statistics and Analytical Services Branch in the Department of Agriculture, Environment and Rural Affairs (DAERA) have published ‘carbon intensity indicators’ for Northern Ireland for 2023. Carbon intensity refers to the amount of the greenhouse gas carbon dioxide (CO2) emitted per unit of economic output or activity. Figures indicate that the ratio of total greenhouse gas emissions to gross-value add (GVA) in Northern Ireland decreased 66 percent from 1998 to 2021 and decreased 36 percent per capita from 1990 to 2021 (despite a 19 per cent increase in the population over the same period).  The publication seeks to among other things help Government track the effectiveness of carbon reduction policies. UK climate and energy developments The UK’s Energy Act 2023 passed last week, marking a pivotal moment in the country’s transformation to sustainable energy. The legislation aims to future-proof the UK’s energy system by strengthening energy security, delivering net zero and ensuring affordability for households and businesses. According to ICAEW Insights, however, while the Energy Act does provide businesses with a sense of direction and a level of certainty around the government’s investment in a net zero-aligned energy market, the appropriate policy mechanisms and detailed plans are yet to fall into place, and challenges to net-zero remain. This week also saw the publication of the UK Government’s Autumn Economic Statement. In this, Chancellor Jeremy Hunt described the importance of the green economy to the UK's long-term competitiveness, but climate experts were reportedly critical of the absence of references to energy efficiency or insulation, and less-than-optimal levels of investment in green technology in comparison to similar investments offered by the US and the EU.   The Innovation Fund The European Commission has opened a €4 billion call for proposals for net-zero technologies under the Innovation Fund. The Innovation Fund aims to create financial incentives for companies and public authorities to invest in cutting-edge low-carbon technologies and support Europe's transition to climate neutrality. The call is funded by revenues from the EU Emissions Trading System (EU ETS), underlining the importance of carbon pricing for the green transition.  Pollution, packaging and ‘forever chemicals’ - EU “If you pollute, you will pay for your crimes.” This statement by EU Parliament’s chief negotiator Antonius Manders was about the provisional agreement reached last week between the EU Parliament and Council on the protection of the environment through criminal law. Under the new Directive, proposed in 2021, breaches of environmental obligations such as illegal trade and handling of chemicals or mercury, or illegal ship recycling will have to be treated as criminal offences in all EU Member States. Offending companies will be fined up to 5 percent of their global turnover and the worst polluters may face jail sentences of up to 10 years. Separately, the Parliament adopted its position on new EU-wide rules on packaging, to tackle constantly growing waste and boost reuse and recycling in responses to citizens’ expectations to build a circular economy, avoid waste, phase-out non-sustainable packaging and tackle the use of single use plastic packaging. In addition to the proposed ban on the sale of very lightweight plastic carrier bags (below 15 microns), MEPs are also proposing to heavily restrict the use of certain single-use packaging formats, such as hotel miniature packaging for toiletry products and shrink-wrap for suitcases in airports. To prevent adverse health effects, MEPs are also proposing a ban on the use of so called “forever chemicals” in food-contact packaging. The European Parliament has also adopted its position on a stronger “right to repair” for consumers,  complementing EU initiatives on Ecodesign and on Empowering consumers for the green transition. The right to repair proposal aims to encourage more sustainable consumption, by making it easier to repair defective goods such as washing machines, vacuum cleaners, smartphones and bicycles after the guarantee has expired, and reduce waste and support the repair sector. The Emissions Gap Report - UN The UN Environment Programme (UNEP) has issued its annual Emissions Gap Report, which assesses countries’ promises to tackle climate change compared with what is needed.  The report finds that the world is on track for a 3° temperature rise above preindustrial levels this century if governments do not boost climate action. Released ahead of the COP28 climate summit in Dubai this year, the report concludes that the current pledges by countries under the Paris Agreement are insufficient, and that “global low-carbon transformations” are needed to deliver required emissions cuts. Speaking about the report, Inger Andersen, UNEP Executive Director stated: “There is no person or economy left on the planet untouched by climate change, so we need to stop setting unwanted records on greenhouse gas emissions, global temperature highs and extreme weather”. Commenting, Ireland’s Minster for the Environment, Climate and Communications, Eamon Ryan, T.D., reportedly stated that while developed economies are collectively hard-wired to ignore the reality of climate change, we have to speed up and scale up our switch to an economy-wide, low-carbon future based on green energy, green jobs and green agriculture. GDP and climate risk Loss of labour due to heat stress wiped out the equivalent of 4 percent of Africa’s GDP in 2022, according to a new report from the Lancet Countdown on Health and Climate Change covered by Carbon Brief. Meanwhile, Europe and North America only saw labour losses equivalent to 0.1 percent and 0.2 percent of their GDP, respectively, according to the findings. Effective income losses in 2022 were due to heat stress in agriculture and other sectors. Technical updates (from our colleagues in Professional Accounting) EFRAG and CDP have announced that they will cooperate to maximise alignment of CDP’s global environmental disclosure platform with the EU’s environmental reporting standards. Global Reporting Initiative (GRI) has announced the launch of a Sustainability Innovation Lab to enable companies to meet their evolving sustainability disclosure requirements. ESG Governance – Questions Boards should ask to lead the Sustainability Transition (Accountancy Europe, ecoDa and ECIIA) aims to help boards with embedding sustainability into company strategy and business models, and to ensure that proper governance supports this. Did you know? Roughly 30 percent of all food produced for human consumption is wasted. A contributing factor to this is in feast-preparation for holidays like Thanksgiving yesterday in the US, and at Christmas. Online tools like the Guest-imator suggest how much of each dish to make based on who’s coming.  Articles A sector progress tracker for the net-zero transition (McKinsey) Global warming approaching 3 degrees this century with catastrophic implications, UN report warns (Irish Times) Ships Across the World Face Hefty $3.6 Billion Climate Bill - The EU’s Emissions Trading System for vessels kicks in Jan. 1 (Bloomberg) Watch Tomorrow Tonight, a scripted docu-drama (1hr, 11mins) set in 2050 and focusing on climate change, the Irish rural economy and a revitalised Amazon rainforest. Introduced by presenters Mark Little and Carla O’Brien, the programme aired on RTÉ One as part of a series of specials celebrating Science Week 2023. Upcoming events   Chartered Accountants Ireland: Elephant in the Room To mark this year’s Movember, Thrive, along with the Leinster Society, invites you to the unveiling of our Elephant sculpture as part of the mental health initiative, Elephant in the Room. In person: 29 November, 5pm, Chartered Accountant House – Reception Foyer Chartered Accountants Ireland CPD Blitz 2023 - NI: In Person Chartered Accountants Ireland’s 2023 NI CPD Blitz series offers 10 CPD hours each and provides the latest updates in Financial Reporting, Sustainability Reporting, Taxation, and UK Company Law. Sustainability Reporting Update will be given by Dr Louise Gorman, Trinity College Dublin. In person: 30 November, 9:30-1:30pm, Grand Central Hotel, Belfast. Sustainable Energy Authority of Ireland (SEAI) SME Business Briefing A webinar to learn how your business can save money and energy this year. Virtual: 30 November, 10-11am Innovate UK's showcase for climate tech event in Northern Ireland Innovate UK is delivering a series of 18 'showcase for climate tech' events across the UK until September 2025. Each event focuses on a specific net zero theme or technology area. The Northern Ireland event, run in partnership with Business in the Community NI, will take place in Belfast on 6 December 2023 and will focus on digital solutions for net zero. In person: 6 December, Various Locations (See event listings) DETE, Building Better Business   During 2023, the Department of Enterprise, Trade and Employment (DETE) has run a series of free Building Better Business events across the country to help businesses navigate the green journey and boost business performance through digital transformation. In person: 7 December, The Convention Centre Dublin, 8.30am – 1.30pm.  Chartered Accountants Ireland CPD Blitz 2023- Dublin: Face to Face Chartered Accountants Ireland’s 2023 CPD Blitz series offers 10 CPD hours each and provides the latest updates in Financial Reporting, Sustainability Reporting, Taxation, and UK Company Law. Sustainability Reporting Update will be given by Dr Louise Gorman, Trinity College Dublin. In person: 7 December, 9:30-1:30pm, Chartered Accountant House, Dublin. 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. 3rd or 4th Wednesday of every month Next: 24 January 2023  14.00-15.00/30 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.