In this week’s Sustainability/ESG bulletin, read about a consultation on Ireland’s National Adaptation Framework, Ireland’s fourth National Biodiversity Action Plan and a report on Ireland’s approach to natural capital accounting. Also covered are funds for climate action in Ireland and Northern Ireland, the declining cost of pollution in Europe and tax updates, technical roundups, newsletters, articles, podcasts and upcoming events.
Consultation on Ireland’s National Adaptation Framework
A public consultation on the National Adaptation Framework under Ireland’s Climate Action and Low Carbon Development Act 2015-2021 is open until 19 February to gather feedback from relevant stakeholders and members of the public on the draft National Adaptation Framework. The framework specifies the national strategy for the application of adaptation measures in different sectors and by local authorities to reduce the vulnerability of the State to the negative effects of climate change and to avail of any positive effects that may occur.
Accounting for nature
Ireland’s fourth National Biodiversity Action Plan (NBAP) has launched, the first such plan to be backed by legislation. The plan, ‘Actions For Nature’ addresses key recommendations from the Citizen’s Assembly on Biodiversity Loss and includes actions such as expanding National Parks, tackling invasive species, strengthening efforts on wildlife crime and working with communities. It sets out how to reverse the decline in biodiversity in Ireland, which poses serious threats to societal wellbeing and economic development.
Separately, the National Economic and Social Council (NESC) has published a report to inform Ireland’s approach to natural capital accounting. The report, Natural Capital Accounting: A Guide for Action, recommends three areas of action that can be taken to help develop natural capital accounting and to help embed it into the wider policy making system: capacity building; putting a spotlight on ecosystems services; and further integrating natural capital accounting into policy decisions.
EPA publishes Ireland’s Climate Change Assessment (ICCA)
The Environmental Protection Agency (EPA) has published Ireland’s Climate Change Assessment, the first comprehensive and authoritative assessment of the state of knowledge of climate change in Ireland. It aims to identify opportunities that may arise from the planned transition to a climate neutral, biodiversity-rich, environmentally sustainable and climate resilient economy and society. The report finds that Ireland needs to be resilient to ongoing and future climate change impacts, and that implementation of climate adaptation measures is currently too slow and fragmented. It also finds that immediate and sustained transformative mitigation and adaptation actions are likely to yield substantial benefits for health, wellbeing and biodiversity in Ireland while reducing vulnerability to the adverse impacts of climate change.
Community Climate Action ‘mega fund’ launches
A €27 million fund for Community Climate Action has been launched for local organisations working to build low carbon communities. The ‘mega fund’ comprises both the national Climate Action Fund allocation of €24 million and an allocation of €3 million provided by the Government’s Shared Island Fund to support cross-border and all-island community climate action initiatives. The climate funding programme, which will be administered by local authorities, will be flexible enough to provide lesser amounts as needed to smaller and medium sized local action programmes.
Energy in Ireland Report
Ireland’s energy demands are increasing, and emissions are not reducing fast enough, according to the annual Energy in Ireland report published by the Sustainable Energy Authority of Ireland (SEAI) in December 2023. According to the report, Ireland imported 81.6 percent of its energy in 2022, and 85.8 percent of energy came from fossil fuels. While energy emissions in 2022 were found to be the lowest of any year in the last quarter century (not counting 2020 which was strongly impacted by COVID 19), the pace of emission reductions is not sufficient to meet our national climate obligations.
Multi-million-pound package for UK businesses to cut their emissions
The UK government has announced a multi-million-pound package to help businesses cut their emissions and energy bills. The funding – which amounts to over £190 million – comprises £6 million for winners of the Local Industrial Decarbonisation Plan competition and £185 million under a new phase of the Industrial Energy Transformation Fund, to be made available later this month. Speaking about the announcement Head of Green Economy Development at Invest Northern Ireland, Rachel Sankannawar said it will “bolster our efforts to unlock the economic possibilities of a low carbon future for Northern Ireland… enhance our competitiveness globally …[and] support us to boost our productivity and contribute to reducing our emissions.” More information on how to apply to the next phase of the Industrial Energy Transformation Fund is available here.
Decline in cost of pollution from European industry
Updated analysis by the European Environment Agency (EEA) shows that while air pollution from large European industry continues to cause significant damage to the environment, climate and people’s health, the cost of air pollution has declined by about a third during the past decade. Analysis published shows that just a small fraction of the most polluting facilities — many of them coal power plants — causes half of the total damage. The EU energy sector accounted for the vast majority — about 80 percent — of the total decrease, achieved mainly by adopting best available techniques (BAT) and shifting to renewables and less polluting fuels largely as result of EU action.
Sustainability a business imperative at Davos
Sustainability as a business imperative was reportedly among the themes as this year’s World Economic Forum meeting, which took place from 15-19 January in the Swiss mountain resort of Davos. Business leaders and politicians, along with key figures from academia and the not-for-profit sector, attended the meeting, which was titled “Rebuilding Trust”. The event focused on the four themes of security and cooperation, jobs and growth, AI, and climate and nature.
Tax News
(From our colleagues in the Tax Team)
- The European Commission has published the default values for determining embedded emissions during the Carbon Border Adjustment Mechanism (CBAM) transitional period (which runs to the end of 2025). These values will be revised regularly from the first reporting period (Q4 2023). CBAM is the EU’s key tool for combatting carbon leakage and is a central part of the Fit for 55 Agenda.
- Revenue has updated the Tax and Duty Manual which provides guidance on the income tax exemption of certain profits from the microgeneration of electricity by an individual their main residence.
- Following the extension to 31 December 2025 of the scheme for accelerated capital allowances for energy-efficient equipment, as provided for in section 285A TCA 1997, Revenue has updated the relevant Tax and Duty Manual.
Technical Round-Up
(From our colleagues in Professional Accounting on 19 January and 5 January )
- IFRS and GRI have published a summary of interoperability considerations for greenhouse gas (GHG) emissions.
- IFAC has published “A Literature Review of Competencies, Educational Strategies, and Challenges for Sustainability Reporting and Assurance”.
- ISSB has issued its December 2023 update and podcast and has published amendments to the SASB Standards (intended to enhance their international applicability).
- EFRAG has
- issued a call to SMEs for participants to test forthcoming exposure drafts on voluntary sustainability reporting standards for non-listed SMEs and ESRS for listed SMEs.
- published three draft Implementation Guidance documents, open for public comment until 2 February
- announced, with the Taskforce on Nature-related Financial Disclosures (TNFD), a cooperation agreement and shared commitment to enhance corporate transparency related to biodiversity and ecosystems.
- On 22 December 2023, the ESRS Delegated Act and Annexes were published in the EU Official Journal (see EFRAG’s page)
Sustainability Newsletter
(from our friends in Accountancy Europe)
- European Parliament and Council stroke deal on CSDDD
- European Commission provides additional guidance on EU Taxonomy Disclosures
- European Council reaches position on ESG ratings proposal
- European Securities and Markets Authority’s consults on draft guidelines on enforcement of sustainability information
- International Ethics Standards Board for Accountants (IESBA) exposure draft on International Ethics Standards for Sustainability reporting and assurance
- International Organization of Securities Commissions (IOSCO) IOSCO lays out its strategic priorities at COP28
Articles
Listen
In this podcast, Sinead Kelly, Tax Director at PwC helps demystify ESG and describes upcoming policy changes.
Upcoming Events
UN Global Compact Network UK Collecting Scope 3 Data Webinar Series 2024
The UN Global Compact Network UK are hosting an interactive four-part webinar series in 2024 to support businesses to efficiently collect Scope 3 emissions data from across their value chain. This series will explore how companies can collect Scope 3 data using a variety of tools, surveys, and software and will feature case studies and insight from businesses on good practice in this area.
- Chartered Accountants Ireland CSRD – Building Finance & IT partnerships
Finance professionals are working hard to understand the implications of the CSRD, and to implement the necessary reporting for their businesses. But their colleagues in IT also have a vital part to play. This webinar will examine how to establish effective collaboration between the Finance and IT teams, what pitfalls to avoid and how to build a strong partnership to deliver an effective sustainability reporting programme
Wednesday, Zoom, 7 February 2024 12:00 – 12.45
- Accountancy Europe Supporting SMEs with sustainability information
Small and medium-sized enterprises (SMEs) report that their larger value chain partners and finance providers are increasingly asking them for sustainability data to fulfil regulatory requirements. The Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D) leave most SMEs out of their scope, but their indirect impact in small businesses – which often operate with limited know-how and resources – is still significant.
21 February 2024 (17:00 - 19:00) Brussels time
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: Wednesday, 21 February, 14:00-15:30
- Online via 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.
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