The Climate Action and Low Carbon Development Act 2021 commits Ireland to a legally binding target of a climate neutral economy no later than 2050, and a reduction in emissions of 51% by 2030 compared to 2018 levels. Following the process set out in the Act, the Government approved sectoral emissions ceilings last July for both the first and second carbon budget periods, with the exception the Land Use, Land Use Change and Forestry sector, which will be determined no later than the end of 2023. The industry sectoral ceiling in the first budgeting period (2021-2025) is 30 MtCO2eq and 24 MtCO2eq in the second (2026-2030). The new Climate Action Plan will set out a roadmap to achieve these sectoral ceilings. The process allowed for public consultation as well as consultation with industry stakeholders. While operating within the sectoral emissions ceilings will be challenging for all sectors, the transition to a climate neutral economy creates opportunities. Consumers are becoming more aware of the environmental impact of their purchases and businesses that adapt and evolve their business model to meet this demand will gain new customers. The Climate Action Plan recognises that Government support is required to reduce high upfront investment costs and improve access to low carbon technologies such as energy efficiency; greater electrification of low-to-medium temperature heating; and increased supply and use of biogas, biomethane and green hydrogen. Developments in each of these areas will present opportunities to Irish industry and enterprises.
