Sustainability remains a strategic priority for Irish businesses. This focus will only increase in 2023 as companies tackle economic uncertainty, rising inflation, talent shortages and an evolving environmental, social, and governance (ESG) regulatory landscape.
In December 2022, the government published Climate Action Plan 2023 (CAP23). It is the first updated plan since the introduction of the Climate Action and Low Carbon Development (Amendment) Act 2021. CAP23 aims to keep Ireland’s emissions within its mandatory carbon budget and achieve the legally binding target of reducing emissions by 51% (from a 2018 baseline) by 2030. Preliminary analysis suggests that this will require approximately €120 billion in investment between 2022 and 2030.
Guide to Ireland’s Climate Action Plan 2023
To help Irish businesses understand CAP23 and how it will affect their ESG journeys and achieve ESG ambitions, our Sustainable Futures and Management Consulting teams have summarised CAP23 and its impact on citizens, communities, and enterprise. This guide to CAP23 provides KPMG’s perspective on the scale of the challenge. It is broken down into ten key sections from CAP23 and is the second guide prepared by KPMG, which will be updated annually alongside the Climate Action Plans.
CAP23 outlines ambitious plans for both private and public sectors. The scale of change means that organisations need to act now if we are to meet our climate obligations.
From Talk to Action
CAP23 sets out a substantial increase in ambition, incorporating the carbon budgets and sectoral emission ceilings, which put Ireland on a trajectory to net zero emissions by 2050 if achieved. However, according to Ireland’s Climate Change Advisory Council, CAP23 still doesn’t deliver all the emission savings required between now and 2030.
With delivery of actions from Climate Action Plan 2021 often being delayed and Ireland’s history of missed renewable energy and climate targets, it is crucial that the focus shifts in 2023 from talk to action.
Although Ireland has committed to reducing emissions by 51% by 2030, energy related emissions were up by over 5% in 2021 with provisional 2022 data showing another c. 5% increase. CAP23 is aiming to reverse these increases and put Ireland back on a trajectory to its 2030 goals.
Keeping track of progress
The Climate Action Plan 2023 presents significant challenges to Irish enterprise. Looking ahead, quarterly progress updates will continue to be made available, indicating the progress against the plan and highlighting the areas of greatest opportunity.
Sector summaries
Get in touch
If you have any queries on the above report or the impacts of Ireland's Climate Action Plan 2023 on your business, please get in touch with our team below. We'd be delighted to hear from you.
