In this week’s Sustainability/ESG bulletin, read about climate technology opportunities, the latest report from the Intergovernmental Panel on Climate Change (IPCC), the introduction of incentivised waste collection charges in the commercial sector, and government approval for the General Scheme of legislation addressing energy sector windfall gains. Also covered is the reduction in grants available for private EV purchase, a consultation on a proposed extension to the UK’s Climate Change Agreement scheme, and EU proposals on a hydrogen bank and on the right to repair and tackling greenwashing.
Climate-aligned solutions – the climate tech opportunity
In an interview this week with Institute Sustainability Officer, Susan Rossney, Aideen O’Hora discussed climate innovation, the role of accountants and finance professionals, and the range of Irish climate tech companies that demonstrate the potential for Ireland as a global leader in climate technology. Examples of climate technology are in all sectors, focusing on both mitigation (reducing emissions) and adapting to the effects of climate change.
A co-founder of consultancy company SustainabilityWorks, Aideen is a climate innovation advocate and one of the co-authors of a recent report with PWC on The Irish Climate Tech Opportunity 2023 Watch the recording here (15 mins)
“Everything, everywhere, all at once” - the IPCC global climate change report
The United Nations Intergovernmental Panel on Climate Change (‘IPCC’) has published its latest report urging governments and policy makers to act decisively to ensure a liveable future for humanity. The Climate Change 2023: Synthesis Report represents the most up-to-date consensus among the world’s scientists about climate change, its impacts, and actions to take.
The report finds that with current levels of greenhouse gas emissions, commitments made by countries to decarbonise are unlikely to prevent global temperatures increasing by more than 1.5°C, or even 2°C. Going above these thresholds will result in catastrophic impacts of climate change.
The report states that there is a wide range of feasible and effective options available to countries to reduce emissions. It proposes “climate resilient development,” involving integrating measures to adapt to climate change with actions to reduce or avoid greenhouse gas emissions in ways that provide wider benefits.
Speaking about the report, Laura Burke, Director General of Ireland’s Environmental Protection Agency (EPA), described the IPCC findings as “clear, stark and challenging”, and reinforcing the urgent need for action to reduce greenhouse gas emissions while adapting to the current and future impacts of climate change. Minister for the Environment, Climate and Communications, Eamon Ryan TD, stated that climate change is causing widespread and increasingly irreversible losses and damages, leaving us with “a rapidly closing window of opportunity to maintain a liveable future for all”. UN Secretary-General António Guterres described IPCC’s report as a “how-to guide to defuse the climate time-bomb” and declared that climate action is needed on all fronts: “everything, everywhere, all at once” (a reference to this year’s Best Film Academy Award winner).
IPCC is the UN body tasked with undertaking scientific knowledge about human-caused changes to our climate. To do this, it conducts periodic reviews of all relevant scientific publications, enlisting thousands of scientists and experts. The IPCC reports represent the most up-to-date consensus among the world's scientists about climate change, its impacts, and what to do about it. IPCC reports aim to inform governments about the state of knowledge on climate change, including possible response options and the natural, economic, and social impacts and risks.
Incentivised waste collection charges for the commercial sector
New legislation signed this week will introduce incentivised charging for waste collection in the commercial sector. The Waste Management (Collection Permit) (Amendment) (No. 2) Regulations 2023 will bring the commercial sector in line with the residential sector, for which incentivised pricing has been in place since 2017. Measures under the new legislation include the requirement on all waste collection companies to provide a residual, mixed dry recyclable and bio-waste bin to all their commercial customers, and that all commercial customers are placed onto a price plan that ensures that the cost to the customer for mixed dry recyclable or bio-waste is less than the cost of disposal for municipal waste. The introduction of this measure should not result in higher waste collection charges for commercial customers, and collection of recyclable waste and bio-waste must occur at least fortnightly. The legislation will come into effect on 1 July 2023.
Government approval for General Scheme of legislation addressing energy sector windfall gains
Minister for the Environment, Climate and Communications, Eamon Ryan, has announced government approval of the General Scheme of the Energy (Windfall Gains in the Energy Sector) Bill 2023, the legislation to implement the temporary solidarity contribution and the cap on market revenues to address windfall gains in the energy sector. The proceeds to be raised is currently estimated as between €280-€600 million and will be used to support electricity customers in mitigating the impact of high electricity prices. The draft General Scheme can be found here.
Reduction in grants for private EVs
Zero Emission Vehicles Ireland (ZEVI), an office within the Department of Transport, has confirmed that the maximum private vehicle car grant will be set at €3,500 for applications from July 1, 2023, down from the current maximum of €5,000. Vehicle incentives for business will remain the same with the Sustainable Energy Authority of Ireland (SEAI) continuing to administer commercially bought EVs and large panel vans grants at current levels. The small public service vehicles (SPSV) grant for taxi and hackney drivers administered by the NTA was renewed in February, while the Alternatively Fuelled Heavy Duty Vehicle Purchase Grant Scheme, managed by Transport Infrastructure Ireland, has also remained unchanged. Government investment strategy for electric vehicles will begin to rebalance towards supporting EV charging infrastructure to bring Ireland in line with European nations such as Norway, Germany and France which have similar policies.
Climate Change Agreements: consultation on extension and future scheme (2023)
The UK’s Department for Energy Security and Net Zero (DESNZ) has launched a consultation on proposals for an extension to the current Climate Change Agreement scheme, and on further proposals resulting from an earlier consultation. The consultation seeks views on an extension to the current scheme, adding a reporting period between 1 January 2024 to 31 December 2024. This will result in another certification period ending on 31 March 2027, providing further reductions in the Climate Change Levy for participants. The consultation closes at 11.45pm on Wednesday 10 May 2023.
Developments in Europe
The European Commission has published its Net-Zero Industry Act, a proposal aimed at boosting Europe’s green industry. The Act is a key part of the European Green Deal Industrial Plan, EU’s response to the US massive green subsidies package under the Inflation Reduction Act.
The Commission also released a proposal for a Critical Raw Materials Act, which aims to ensure a secure and sustainable supply of raw materials needed for green transition technologies like wind turbines and electric vehicle batteries, along with a proposal for a European Hydrogen Bank, to boost renewable hydrogen production and imports.
It further adopted a new proposal on common rules promoting the repair of goods, with which it aims to reduce waste, tackle greenwashing and protect consumers.
FCA outlines where improvements are needed in ESG benchmarks
From our colleagues in Professional Accounting
Correspondence in September 2022 from the Financial Conduct Authority (FCA) to benchmark administrators in the UK highlighted the risk of poor disclosures for ESG benchmarks. The FCA said that high quality ESG benchmarks are important to support trust in the market for ESG products and the transition to a net zero economy. The FCA has completed a preliminary review on ESG benchmarks which found that the overall quality of ESG-related disclosures made by benchmark administrators was poor and it has sent a further letter to administrators outlining the issues identified. These include not enough detail on the ESG factors considered in benchmark methodologies and not fully implementing ESG disclosure requirements. You can read the follow-on correspondence which details the issues here. The FCA has also indicated that it supports regulation of ESG ratings and is working closely with Government on this.
Podcasts
Professor Hannah Daly, Specialist in Sustainable Energy in UCC, and Eamon Stack, Policy Officer with the Irish Electric Vehicle Owners Association, discuss the government decision to cut the private electric vehicle grant from July (Radio 1)
What the SVB Collapse Means for Climate Tech - What happens when a "climate bank" goes under? (Zero from Bloomberg Green)
Articles
- Weakened EU greenwashing rules under attack - Environmental guidelines watered down from draft proposals after heavy business lobbying (Financial Times)
- How a tax break meant to curb climate change could make it worse - Green hydrogen (Washington Post)
- Greta Thunberg, 600 others get court nod to sue Swedish state for "insufficient climate policy" (RTÉ News)
- Q&A: How the EU wants to race to net-zero with ‘Green Deal Industrial Plan’ (Carbon Brief)
Competitions
Accounting for Sustainability (A4S) is now accepting applications for the A4S Academy 2023. The 18-month programme will begin at the end of June 2023, with applications closing on 31st March. More details, including programme outline, eligibility and fees are on the A4S website or by email.
Upcoming Events
- Invest Northern Ireland/Keep NI Beautiful - Interested in becoming more climate smart in your home, business, local community? Wondering where to start? Invest Northern Ireland will be hosting a free webinar in partnership with Keep NI Beautiful to describe what changes we can make as individuals, groups, and organisations to make a significant impact, 28 March 10:00 – 11:15
Certificate in Sustainability Strategy, Risk and Reporting
Classes start Wednesday 3 May
Following three sellout sittings, our Certificate in Sustainability Strategy, Risk and Reportingfor accountants is back again in May 2023. Over 8 weeks, you'll cover key reporting frameworks and metrics, and learn to address the ESG opportunities and challenges that organisations already face. |
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Find out more
Network for Chartered Accountants working on ESG projects
Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities?
Chartered Accountant now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting.
- 3rd Wednesday of every month
- Next : 26 April, 2023
- 14.00-15.00/30
- Chartered Accountant House/Teams
If you would like to attend please email sustainability@charteredaccountants.ie
You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.
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