Dáil Éireann Debate, Tuesday - 5 March 2024
245. Deputy Noel Grealish asked the Minister for Enterprise, Trade and Employment if there are plans to introduce penalties for businesses that fail to reduce their carbon emissions; if so, when these penalties would be likely to come into effect; and if he will make a statement on the matter. [10479/24]
View answerIt is not my intention to introduce additional penalties on businesses that fail to reduce carbon emissions. This Government's approach is to ensure that their are clear, medium-term incentives for businesses to decarbonise and support available from State agencies to do so, rather than a purely punitive approach.
Businesses already face strong financial incentives to invest in their own sustainability, including a carbon tax that increases year-on-year, or a high price for carbon emissions for larger emitters included in the EU Emissions Trading Scheme (ETS). These send clear price signals to businesses, and they will only get stronger. Moreover, businesses can today reduce their energy costs, cut down on their use of raw materials, improve their efficiency, and crucially, attract their next generation of customers, by making environmental sustainability a core pillar of their operations.
Further, larger businesses will soon have to report on their environmental performance under the Corporate Sustainability Reporting Directive (CSRD), and investments in environmental sustainability are already influencing businesses' access to credit and other forms of finance.
State agencies such as Enterprise Ireland, IDA and SEAI are on hand to support businesses respond to this change in market conditions. There are grants available for investments in efficiency, renewable energy, electrification of heating systems, electric vehicles and removing fossil fuels from commercial operations. SMEs that are just getting started on their sustainability journey can use the Climate Toolkit for Business to direct them to where their emissions and most impactful carbon reduction opportunities are likely to arise for their particular business.
The move to a low-carbon economy is already underway and now inevitable; business are increasingly aware of their role in this transition.
