COP29 – the 2024 global climate summit – is coming to a close, after two weeks of negotiations in Baku, Azerbaijan. Climate finance has been a major focus of the summit, particularly the setting of a new finance target called the New Collective Quantified Goal, or NCQG, for tackling climate change. The goal will replace a goal initially agreed in 2009, when developed nations pledged to provide $100 billion annually in climate financing for developing countries.  (Here’s a quick refresher on COP from the Chartered Accountants Ireland website). X marks the spot in the draft of the agreement Negotiations on the first draft agreement on climate finance have failed to produce a document acceptable to all parties. It was immediately deemed inadequate by EU negotiators, with EU Climate Commissioner Wopke Hoekstra stating “As for the text overall, I'm not going to sugarcoat it - it is clearly unacceptable as it stands now”. The 10-page draft of an agreement on a ‘new collective quantified goal’ (NCQG) did not contain even a range of values for the headline goal, recognising that developing countries need a commitment of at least “USD [X] trillion” per year. This mystery figure – and who will pay it – are among the sticking points at COP this year, which can be summarized as follows: How much money? The amount of finance needed by developing countries to fight climate change has been the subject of much debate. Rich nations have pledged $100 billion a year. Many developing countries say that $1.3 trillion a year is accurate. (For context, $2.4 trillion was spent on weapons in 2023, and at least $1 trillion on fossil fuel subsidies in 2022.)   Grants or loans? Developing countries are advocating for the money to be given in the form of grants from rich governments, and not loans which would add to the national debt of vulnerable countries. Speaking at the summit, Ireland’s Minister from Climate Eamon Ryan, described this as “a fundamental justice issue”, and stated that COP is about “changing the financial system so that fundamental injustice does not continue into the future.” (Minister Ryan has been asked by the UN and the Cop29 presidency to lead negotiations on adaptation).   Public or private? Developed countries want all sources of finance, including public money and private investment, to be counted toward the goal.   Which countries should pay? The definition being used at COP of a ‘developed’ country dates from 1992. Delegates from both developed and developing countries have described this definition as ‘obsolete’. They advocate for China and India in particular to no longer be treated as developing countries and to provide financial assistance to poorer countries. Other issues Fossil fuels At last year’s COP in Dubai, the final agreement contained a pledge to “transition away” from fossil fuels. It was the first time in the history of the climate negotiations that nearly 200 countries agreed to even mention fossil fuels in the agreement. Many commentators have expressed concern that this pledge is being neglected at this year’s COP in Baku, and the high number of representatives from fossil fuel companies, and the location for the conference itself, has drawn criticism from several sources: Azerbaijan’s total economy is heavily dependent on oil and gas, which account for about half of and more than 90% of its exports, and the Chief Executive of the international climate summit was secretly filmed promoting fossil fuel deal by an undercover climate organisation days before the conference was to get underway. Who was there – and who wasn’t Another issue of note this year was the absence of various world leaders (including Ireland’s), although US President Joe Biden did travel to the Amazon to launch the new Brazil Restoration & Bioeconomy Finance Coalition (BRB Finance Coalition), members of which include the World Bank Group and the World Economic Forum. Europe’s official COP29 delegation was led by Lídia Pereira, with European Commissioner for Climate Action Wopke Hoekstra convening a press conference with representatives of ‘like-minded ambitious countries’ to underscore their commitment to delivering Nationally Determined Contributions (NDCs) that are aligned with a 1.5°C trajectory. Ireland’s national statement to the summit was delivered by Minister for Climate Eamon Ryan, who highlighted the importance of a successful conclusion to the talks: “Giving up would be unforgiveable, but success can help restore belief in multilateralism and restore confidence.” Another Irish commentator at COP29 was the Chair of the Elders and former President of Ireland Mary Robinson. Mrs Robinson drew attention to the discrimination and inequality that climate change causes globally to women and children and was critical of what she described as attempts by the Vatican, Russia and Saudi Arabia to blocking progress on a gender-related climate action plan.   The Global Carbon Market Another important highlight of this COP was the endorsement of a global carbon market framework under Article 6 of the Paris Agreement. Under Article 6 countries are able to transfer carbon credits earned from the reduction of greenhouse gas emissions to help one or more countries meet their climate targets. Although the COP29 presidency welcomed this ratification of the last part of the Paris Agreement as an ‘early win’,  other commentators fear that there are still unresolved fundamental and technical issues. Separately, the Integrity Council for the Voluntary Carbon Market has approved three methodologies for generating high-integrity carbon credits aimed at reducing emissions from deforestation and forest degradation in developing countries (‘REDD+’). The multi-stakeholder-led independent not-for-profit organisation was set up in 2021 in response to the final recommendations of the Taskforce on Scaling the Voluntary Carbon Markets (TSVCM).   Read more Fight over cash at climate summit as time runs out at COP29 (BBC) COP29 climate talks enter final phase: What happens next? (RTÉ News) UAE urges countries to honour fossil fuels vow amid Cop29 impasse (The Guardian) COP29: The selfish case for climate finance - New academic paper argues climate-focused grant finance is in rich countries’ economic interest (Financial Times) – Premium G20 helps lift mood at Cop29 climate talks (Irish Times)

  In this week’s Sustainability/ESG bulletin read about the CSO’s report on decoupling emissions from economic activity, Ireland’s improving climate profile, a consultation on the UK Green Economy and a report into the UK financial sector’s need for better climate information. Also included is the adoption by the European Commission of the Carbon Market Report, the Rio de Janeiro Leaders' Declaration and the usual resources, podcasts, webinars, articles and events. Ireland news COP29 – the outcome draws near COP29 – the 2024 global climate summit – is coming to a close, after two weeks of negotiations in Baku, Azerbaijan. The summit has focused on climate finance, particularly setting a new finance target called the New Collective Quantified Goal, or NCQG. Read more here. CSO reports on progress on reducing greenhouse gas emissions by sector The Central statistics Office (CSO) has published a report analysing whether greenhouse gas emissions have decoupled from economic activity or if the potential economic and social impacts of reducing emissions towards the 2030 targets can be observed. Decoupling Emissions from Economic Activity 2022 focuses on the six sectors with the highest greenhouse gas emissions: Agriculture (39%), Households (23%), Manufacture of Cement and Other Non-Metallic Minerals (6%), Land Transport (4%), Information and Communication (3.5%), and Manufacture of Food, Beverages and Tobacco (3%). Examining the economic trends in those sectors in terms of gross value added and employment, the report found that of the six highest emitting sectors, the five NACE sectors (i.e. excluding households) accounted for 55% of emissions, 15% of employment, and 22% of gross value added. Ireland climbs to 29th in global Climate Change Performance Index Ireland has reached its highest-ever ranking in the Climate Change Performance Index (CCPI), an international assessment that monitors the climate protection performance of 63 countries and the EU, which together account for over 90% of global greenhouse gas emissions. Ireland achieved a “medium” ranking due to progress on renewable energy, energy use and climate policy, ranking 29th and vaulting 14 places from last year. Although described as a ‘strong performer’ in climate finance at the international level especially in loss and damage, Ireland was criticised for scoring ‘very low’ on per capita emissions. Separately, the World Meteorological Organization (WMO) has highlighted Ireland as an example of how to successfully establish a National Framework for Climate Services in its  annual State of Climate Services Report. The report, which published on 7 November, focused on the progress of climate services over the last 5 years, and included a deep dive analysis on how selected countries have succeeded in using climate services to deliver a range of socioeconomic benefits and advance climate action. IDA publishes first climate action plan The IDA has published its Climate Action Plan, establishing a baseline of emissions for the organisation, and focusing on actions to deliver on IDA’s 2030 Scope 1 and Scope 2 efficiency and decarbonisation targets. The plan includes a detailed Gap-to-Target Analysis actions, along with examples of projects IDA is investigating in developing renewable energy generation and biodiversity. Watch back – IAASA-IAFA Accounting Education Conference Videos and slides are available from the IAASA-IAFA Accounting Education Conference which took place on Friday 1 November 2024 at Maynooth University. The conference, titled ‘Integrating Sustainability Reporting and Assurance into Accounting Education’, featured discussions on the competencies accountants will need to effectively perform sustainability reporting and assurance, and the implications of sustainability reporting and assurance for accounting education. Find videos and slides from the event here. Northern Ireland/UK news Consultation on UK Green Taxonomy The UK government has opened a consultation to gather views on the value case for a UK Green Taxonomy as part of the UK’s wider sustainable finance framework. Views are sought on whether a UK Green Taxonomy would be additional and complementary to existing sustainable finance policies, including in supporting market participants to make sustainable investment decisions, and the specific market and regulatory use cases which facilitate this. The consultation is open for responses until 6 February 2025. Report finds UK financial sector needs better climate risk information The UK Financial Conduct Authority, which regulates financial services firms and financial markets in the UK, has published the results of a survey conducted among financial institutions participating in the Climate Financial Risk Forum (CFRF). In a report on adapting to climate change, UK Financial Sector Survey on Practices and Information Use for Adapting to Physical Climate Risks, the FCA found a clear need for enhanced accessibility and reliability of climate-related information to support informed decision-making as well as a growing demand for tailored guidance and educational resources to assist information users in understanding and navigating the complexities of climate adaptation. Europe news The EU has issued more than €65 billion of NextGenerationEU (NGEU) Green Bonds since 2021, setting the EU on track to becoming the largest issuer of Green Bonds in the world. The NGEU Green Bonds are expected to enable €264.6 billion of green investments in the nine sectors set out in the NGEU Green Bond Framework, including clean transport, clean energy and energy efficiency. A report by the European Commission, 2023 Forest Fires Report, has found that 2023 was among the five worst years for wildfires in Europe, with climate change making wildfires more frequent and intense. This was underlined by the first ever European Climate Risk Assessment (EUCRA) and the Commission’s Communication on managing climate risks in Europe published this year.   The European Commission has adopted the Carbon Market Report, which analyses and presents the functioning of the EU Emissions Trading System (EU ETS) in 2023 and the first half of 2024. EU ETS revenue remains an important source of funding for the climate transition, raising a total revenue exceeds € 200 billion.   World News The leaders of the G20 met in Rio de Janeiro this week to address major global challenges and crises, to promote strong, sustainable, balanced and inclusive growth and to reaffirm their commitment to building a fair world and a sustainable planet. The Rio de Janeiro Leaders' Declaration establishes actions towards concrete results, based on the priorities of the Brazilian G20 presidency: (i) social inclusion and the fight against hunger and poverty; (ii) sustainable development, energy transitions and climate action; and (iii) the reform of global governance institutions.   LinkedIn's 2024 Green Skills Report reveals global demand for green talent is growing faster than supply, with demand increasing by 11.6% in just one year, while supply grew by only 5.6%. Data scientists predict that the pool of green talent must – at a minimum – double by 2050 to keep pace with projected demand. Notably, United Kingdom (13%), Ireland (12.4%), Saudi Arabia (11.7%), Norway (11.6%), and Switzerland (11.5%) lead with the highest demand for green talent.   Technical update (From our Professional Accounting Team) Accountancy Europe has issued a series of publications summarising the European Sustainability Reporting Standards (ESRS) provisions and sharing views on ESRS aspects that merit further guidance and clarification. The most recent in this series covers interoperability. The International Sustainability Standards Board (ISSB) are hosting episode five of their webinar series ‘Perspectives on sustainability disclosure’ on 25 November, summarising developments and considerations as companies prepare for assurance of sustainability disclosures. A report, which was prepared by the IFRS Foundation and presented to the Financial Stability Board, highlights that over 1,000 companies have referenced the International Sustainability Standards Board in their reports and 30 jurisdictions are making progress towards the introduction of the International Sustainability Standards in their legal frameworks. EFRAG are holding webinars on the European Sustainability Reporting Standards (ESRS) for non-EU groups. These will be held on the 19 and 20 November. EFRAG and CDP, the global independent disclosure system for companies to measure and manage their environmental impacts, have announced that they have achieved extensive commonality between the CDP and ESRS. This follows ongoing collaboration between both organisations on their shared goals.   Event – Chartered Accountants Ireland – Access to sustainable finance by SMEs Join experts Laura Heuston, John McGeown, Gordon Naughton and Orla O' Gorman for a discussion on the landscape of finance and other support options available for SMEs and entrepreneurs to facilitate businesses taking action. Part of the Sustainable Finance Week Ireland 2024, this seminar will be in person on Wednesday, 27 November 2024 at 17.00-18.00 in Chartered Accountant House, and be hosted by Sustainability Advocacy Manager, Susan Rossney. Register here or through the Sustainable Finance Week Ireland platform   Did you know? Europe is the fastest-warming continent in the world, according to the EEA's European Climate Risk Assessment Articles North’s renewable energy sector ‘employs 6,000 people and worth £1 billion’ says report (Irish News) Wind farms generate one third of Ireland’s electricity so far this year (Irish Times) Gender pay gap still looms large at top of UK’s biggest companies (The Times) Why CFOs should invest in geothermal energy (ICAEW Insights) Ireland shifts diversity dial to stay with the pace (Financial Times) ACCA pushes for sustainability reporting standards at COP29 (Financial News ) ‘This keeps me awake at night’: How will Ireland’s climate worsen over the next 20 years? (Irish Times) Upcoming Events COP29 Climate Summit Date: Nov 11-22 Location: Azerbaijan Host: CBD, UN Chartered Accountants Ireland (part of Sustainable Finance Ireland Week 2024), Access to sustainable finance by SMEs Part of Sustainable Finance Week Ireland, this seminar will describe the landscape of finance and other support options available for SMEs and entrepreneurs which can facilitate businesses taking action. It aims to debunk the concept of ‘green finance’ for SMEs and paint a clear picture of the steps and the commercially viable – scalable – actions SMEs could take to improve their impact and their ability to source finance for projects. Commercial financial products will be discussed, alongside the grants available from local enterprise offices (LEOs), Enterprise Ireland, the Sustainable Energy Authority of Ireland (SEAI). In person, Chartered Accountant House, Wednesday, 27 November, 17.00-18.00 Change by Degrees, Can comedy save our planet? A Climate Club webinar with comedians Colm O’Regan and Jon Long, hosted by Dr Tara Shine that will dive into thinking about how having a laugh about something as serious as climate change might help. Virtual (LinkedIn Live), 29 November, 10am – 10.30am Dublin Chamber, Internal Sustainability Integration - Building a Sustainable Workplace Culture Are you a professional in an internal facing role such as finance, operations, or HR? Our upcoming workshop at The Sustainability Academy is designed specifically for you. This session will guide you in integrating sustainability practices within your organisation’s internal mechanisms, demonstrating how these practices can improve employee engagement, operational efficiency, and the overall workplace environment. Virtual, 29 November, 09:30-13.00 Belfast Harbour Commissioners, Responsible Innovation Conference This conference will bring together business leaders, technology experts, and academics to discuss the ethical implications of technology. Participants will learn about managing the social and environmental impacts of technology while driving growth and innovation. The event will also include networking opportunities, allowing attendees to exchange ideas and collaborate on responsible business practices. In person, Belfast Harbour Commissioner, 29 November 2024, from 8:15 am ADViCE, Net Zero Manufacturing: Navigating AI for efficiency This webinar will cover the practical application of AI to improve manufacturing efficiency focusing on optimising energy use and reducing emissions.  Virtual, 26 November 2024, 12:00 - 13:30 MEANZ Business Webinar: Net Zero and Decarbonising your business Mid and East Antrim Borough Council is inviting businesses to the latest webinar in the MEANZ Business Net Zero Insights Series. You will hear about what Net Zero 'MEANZ' for businesses and get practical tips from expert speakers on how you can decarbonise to reduce overheads, save costs and get competitive advantage. Speakers at the event will be James Dunlop, Senior Manager, Carbon Trust, and Mark McEvoy, Sales Director, Camden Group. Virtual, Thursday 5 December, 11.00 – 12.00            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 meeting: November 27, 18:00-19:00 In person, Chartered Accountant House – Drinks & Networking 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.    

Chartered Accountants Ireland was proud to host the launch of Dublin City University Access to the Workplace 2025 in Chartered Accountants House on Pearse Street this week. Now in its sixth year, this award-winning programme provides professional summer internships for DCU Access students from socio-economically disadvantaged backgrounds, and for neurodivergent students. The launch event, Beyond Bias: Unlocking Future Talent, explored how organisations can develop a workforce that is diverse, inclusive and ready to embrace the possibilities of an unscripted future. Commenting Barry Doyle said  “We are proud partners of this programme and fully support the work DCU do in the area of recognising and supporting those whose potential might otherwise have been overlooked. By opening doors to these talents, DCU and their corporate partners are helping to level the playing field, broaden perspectives, and build a workforce that truly reflects the diversity of Ireland’s future. This event not only shines a spotlight on this hugely impactful initiative but also reaffirms our collective commitment to diversity, inclusion, and innovation in the workplace.”

Did you know that every year the Leinster Society organises a charity toy drive at our Christmas Lunch? We are proud to partner with 7 different children's charities each year, and with thanks to our generous members this helps lighten the load for many families at what can be a difficult time of year. Each guest brings along a gift for a child, and with the help of Santa and his elves these gifts are distributed among our 7 charities; SVP,  YPAR, Carr's Child & Family Services, The Santa Fund, Barnardos Millbrook, One Family, and Children's Health Ireland (CHI) at Crumlin. Learn more about our children's charity partners; SVP According to SVP requests for assistance have increased on last year, this means that people who have never reached out for help are now looking for assistance with the basics – food, rent, electricity and heating. They have also noticed that those in employment on low incomes are especially reaching out to them this year as they are finding the cost of living increases more difficult to manage.  With our gifts they can help make Christmas less of a struggle for families hoping to give their children what they wish for this year, whether it’s a toy or a voucher so the family can purchase what the child wants. YPAR - Young People At Risk (North Inner City) The YPAR Initiative (Dublin North Inner City) is an interagency network of statutory, voluntary and community projects and services, established in 2003, whose work is to meet the needs of young people at risk and vulnerable families in the area through action focused collaborative and co-ordinated approach, aimed at improving all aspects of the young people’s life.  YPAR defines a young person at risk as a child/young person aged 0 to 25 years experiencing significant personal, family, educational or social problems. At present there are over 1400 children living in Emergency Accommodation in the Dublin City Centre region alone. With funding YPAR can be proactive and provide an appropriate response to families living in, and leaving, homeless accommodation.  Throughout the last couple of years YPAR have provided large numbers of children with Christmas gifts and art & crafts / games for families. Carr's Child and Family Services CLG Carr's Child and Family Services CLG was established in 1887 with a vision that all children should live in safe, stable homes nurtured by their families and communities. They are a unique service on the island of Ireland because they provide three interlinked services: early years, assessment, and support. These services offer children from birth to five years the opportunity to live in the service with their parents. At the same time, they support parents with disabilities, mental health, homelessness and addiction in being the best parents they can be. The team that makes up Carr's is passionate, dedicated, and committed to their vision, and they work tirelessly to make these early years safe and nurturing for children. The Board of Management strongly focuses on accountability, transparency, integrity, effectiveness and leadership in ensuring good governance of the organisation. They partner with The Child and Family Agency and Pobal in making Ireland a better place for children.  The Santa Fund 'The toys your members provide are fantastic and bring joy to children who otherwise would never receive anything from Santa. Any contributor to the Santa Fund can sit down to their Christmas lunch certain in the knowledge that their contribution went to the people who require it.' - Sean Allen, The Santa Fund The Santa Fund caters for people in dire need and does most of its work in the South Inner City. The people they cater for are in dire need despite the Social Welfare payments and the Christmas bonus. The families are carefully chosen with the assistance of people working in the local area. There are no administrative costs whatsoever and accordingly any money / toys received by the Santa Fund goes directly to the families; the bags they use to pack are donated, the vans they use to transport goods are provided on a voluntary basis, and the people who pack do so on a voluntary basis Barnardos Millbrook Barnardos Millbrook provides preschool and family support services to families. They are a referral-based service, and receive most of their referrals from Tusla, the HSE, mental health services, homeless services and Education & Welfare services. They are one of 4 Barnardos services in the Tallaght area, each with a different remit around the services and support they offer in the community. They support parents through parenting work in the family home, practical support and crisis intervention. They work directly with children to support their development and to support improved emotional wellbeing and overall development. The donations they receive at Christmas are used to directly support and supplement parent’s own efforts to provide for their families. The donations they receive are given directly to parents and help ensure children will have a present to open or warm new clothes to wear on Christmas morning.  They recognise that parents are doing their best, and their aim is to support those efforts to bring extra cheer and comfort to children and families that are often struggling with the cost of living.  Children's Health Foundation Children's Health Foundation raises vital funds to support sick children and their families in Children's Health Ireland hospitals and urgent care centres in Crumlin, Temple Street, Tallaght and Connolly. One Family One Family believes in an Ireland where every family is cherished equally, and is enabled to enjoy the social, financial and legal equality to create their own positive futures. One Family is working to ensure a positive and equal future for people parenting alone, sharing parenting and parenting around separation – changing attitudes, policies, services and lives. They are committed to achieving equality and respect for all families. While acknowledging that every family is unique, they will endeavour to bring about better lives for these parents and children. In addition to striving for fundamental attitudinal and structural change in our society, their services offer support in a family-centred way to individual families through times of change and difficulty, as well as supporting those experiencing an unplanned pregnancy.

In Irish news, Finance Act 2024 has been signed into law and Revenue Technical Services are hosting webinars next week to assist taxpayers in making submissions to the service. In UK news, the Institute met last week with HMRC to discuss the Autumn Budget 2024 and HMRC has published further information on VAT for private school fees. In International news, the Commission has launched a portal for the special SME VAT regime which goes lives from January 2025. Ireland Finance Act 2024 has been signed into law. Revenue Technical Services are hosting webinars next week to assist taxpayers in making submissions to the service. UK 3. Read about the Institute’s meeting last week with HMRC to discuss the 2024 Autumn Budget. 4. HMRC has published further information on VAT for private school fees. International 5. The EU Commission has launched a portal for the special SME VAT regime which goes lives from January 2025.   Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s post EU exit corner here.                

The EU Commission has decided to refer Germany to the Court of Justice of the European Union for failure to eliminate the discriminatory tax treatment of reinvested capital gains on the sale of German real estate. 

The OECD has published its Tax Administration 2024 report which is intended to be used by tax administration analysts to understand the design and administration of tax systems in other jurisdictions and to draw cross-border comparisons. The 2024 edition includes performance-related data, ratios, and trends up to the end of the 2022 fiscal year.  

The OECD Secretary-General Tax Report to G20 Leaders has been published. This report sets out recent developments in international tax reform, including the Two-Pillar Solution. It also covers progress made on the implementation of the BEPS minimum standards and tax transparency, as well as updates on tax policy, tax and inequality, and tax administration. 

From 1 January 2025, the special VAT regime (the SME scheme) will go live, allowing certain small enterprises to sell goods and services without charging VAT to their customers (in effect a VAT exemption) thereby alleviating their VAT compliance obligations.  Any small enterprise with a total annual turnover of no more than €100,000 (or the equivalent in its national currency) in all Member States, for the current and previous calendar year, is eligible for VAT exemption in its Member State of establishment and/or in other Member State(s) under the cross-border SME scheme.  

Revenue has updated the Tax and Duty Manual which provides guidance regarding the adjustment of VAT deductible due to unpaid consideration by deleting content that has become obsolete following the introduction of section 62A VATCA 2010.   

Revenue has updated the Stamp Duty Manual which provides guidance on the exemption for reconstructions or amalgamations of companies under section 80 SDCA 1999. The manual has been amended in section 8 to clarify the circumstances in which relief under section 80 SDCA 1999 will be withdrawn. 

Certain intermediary financing companies, known as Qualifying Financing Companies (QFCs), are permitted to obtain a deduction for interest paid on certain external/third party loans under section 76E TCA 1997. Revenue has published a new Tax and Duty Manual to provide guidance on the deductibility of interest by QFCs .