In this week’s bulletin we bring you news of offshore wind auctions under the Renewable Energy Support Scheme, sustainability supports available for the tourism, community and voluntary sectors, and tax deductions for landlords for retrofitting. Also read about events at COP27, which draws to a close this weekend, and the usual news, resources and events.
COP27
Look back on the resources produced by Chartered Accountants Ireland on the two-week international climate summit which concludes today in Sharm El-Sheikh. COP27 which brought together countries from around the world to accelerate moves to tackle the climate crisis.
Offshore wind auction under Renewable Electricity Support Scheme
In what has been described as a seminal moment in the delivery of offshore wind in Ireland, the Irish Government has approved the Terms and Conditions of ORESS 1, the first auction for offshore wind under the Renewable Electricity Support Scheme. The offshore auction is expected to provide a route to market for up to 2.5GW of offshore renewable energy to the Irish grid, enough to power 2.5 million Irish homes with electricity. Final auction results will be published by June 2023, and at least three offshore energy auctions are currently planned for this decade.
Energy supports announced for community and voluntary sector
Minister for Rural and Community Development, Heather Humphreys TD, and Minister of State, Joe O’Brien TD, have launched a new €10 million fund to provide once-off support to community and voluntary organisations which fall outside the parameters of other energy support schemes being delivered by Government (such as the Temporary Business Energy Support Scheme (TBESS)). The scheme will open for applications on Monday 21 November and close on Friday 2 December 2022 with payments expected to commence before the end of this year and into early 2023. Full scheme details are now available here.
Tourism businesses urged to engage with sustainability supports
Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media Catherine Martin, TD, has advised businesses in the tourism sector to engage with Government supports to make their businesses more sustainable. Speaking at Fáilte Ireland's first national conference on driving climate action in tourism businesses at Croke Park this week, Minister Martin referenced the sectoral emissions ceilings that have been fixed for each sector, including the tourism sector, and the supports available to businesses to help with decarbonisation projects. In addition to the €3 million additional funding in Budget 2023 to allow Fáilte Ireland to continue its work in the area of sustainability, the Minister also pointed to Fáilte Ireland’s new Climate Action Roadmap and the Government’s ClimateToolkit4Business.
Landlords to get tax deduction for retrofitting
The Minister for Finance, Paschal Donohoe TD, has announced a new tax deduction for small-scale landlords who undertake retrofitting works while the tenant remains in situ. The measure will provide for a tax deduction of up to €10,000 per rented residential property against Case V rental income, for certain retrofitting expenses, for a maximum of two rental properties. Read more from our Tax Team.
UK and EU sign joint declaration on energy
The United Kingdom and the EU are among the signatories to a joint declaration from energy importers and exporters on reducing GHG from fossil fuels, joining the United States, Japan, Canada, Norway and Singapore.” In the pledge, the countries committed to support domestic and international action to achieve emissions reductions across the fossil energy value chain, such as adopting policies and measures to achieve rapid and sustained reductions in methane and CO2 emissions, supporting robust measurement, monitoring, reporting, verification, and mobilizing technical assistance and financing for methane and CO2 mitigation in the fossil energy sector. The EU and Egypt have since taken the further step of establishing a strategic partnership on renewable hydrogen.
Fit for 57?
The European Commission’s Vice President Frans Timmermans has told delegates at COP27 that the European Union will be able to cut greenhouse gas emissions by 57 percent from 1990 levels by 2030,instead of the 55 percent originally planned.
There is some criticism, however, that the increase in ambition does not represent a much-needed reduction in emissions, but is a reflection of the EU’s decision to count ‘carbon sinks’, which to date have not been factored into the carbon accounting.
Reaching the target will reportedly require the implementation of new laws proposed ahead of COP27, including a 2035 ban on selling new fossil fuel cars. The Commission also recently proposed a new temporary emergency regulation to accelerate the deployment of renewable energy sources.
From our Professional Accountancy Team
The European Financial Reporting Advisory Group (EFRAG) has approved the final version of the European Sustainability Reporting Standards (ESRS) at its meeting on 15 November, subject to editorial changes. Read more here.
Resources
- A new tool, the Doughnut Design Tool for Business has been created to help businesses engage with ‘Doughnut Economics’. This is an economic mindset underpinned by the concept of social and planetary boundaries. The tool, which helps businesses run facilitated workshops, is accompanied by a paper, What Doughnut Economics Means for Business. The paper contains background context and further detail on the core concepts as well as additional examples of business design.
Articles
- Global CO2 emissions from fossil fuels hit a record high in 2022 (Carbon Brief)
- The UN Environment Program intends to launch a public database of global methane leaks detected by space satellites (Reuters)
- Fantasy football: what a carbon-neutral world cup might look like? (Bloomberg)
- The subtle danger climate change poses to ‘highly vulnerable’ Ireland (The Irish Times)
- ECB's Panetta says green transition may help cut inflation (Reuters)
- Counting the rising costs of climate (Reuters)
Upcoming events
- Institute of Chartered Accountant England & Wales, ICAEW Climate Summit, 21-25 November 2022 (Virtual). With growing climate concerns an ever-present consideration for companies around the world, what can – and should – finance professionals be doing to support efforts towards net zero, sustainability and green finance? This week of virtual sessions will join experts and professionals from across sectors to engage on this biggest of issues.
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Reuters, Sustainability Reporting and Communications Europe,Nov 22-23 November 2022, London
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"Rethinking our economic models, focused on social & circular" - Kate Van Der Merwe, Chris Gordon, & Claire Downey - The Dublin City Centre Business Network Group’s November 2022 Breakfast Briefing is taking place on Friday, 25th November from 7:30am- 8.45am (one hour of CPD) in Chartered Accountants House, Pearse Street, Dublin 2. Contact membersservices@charteredaccountants.ie to book your place.
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Biodiversity COP15 Part 2, 7-19 December
You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our onlineSustainability Centre.