There is a strong willingness among respondents to engage in carbon-reducing behaviours, with 83 percent expressing readiness to implement energy efficiency measures at home and minimise food waste to help Ireland reduce carbon emissions.
Over a half (55%) are willing to shop more sustainably by buying second-hand or less, while 53% say they would upgrade their home energy efficiency through insulation, installing new windows or solar panels. However, less than 2 in 5 (38%) would consider changing their diet to help reduce carbon emissions.
When asked about changing travel behaviours, over half (55%) would be willing to increase their use of public transport, cycling and walking, over a third (35%) would reduce flying, only 32% would purchase an electric or hybrid vehicle and less than a quarter (24%) would pay a premium for air travel using green fuels.
Age matters
Interestingly, the data highlights another generational divide, with older cohorts, specifically those over 55, more likely (90%) to implement energy efficiency measures at home compared to younger demographics who would consider more sustainable transport options like cycling, walking, and public to reduce carbon emissions. Notably, the 18-34 age group are more likely to be renting than homeowners.
Enhancing energy efficiency
Energy efficiency at home is a topic of increasing relevance, with 2 in 5 Irish adults having undertaken some form of energy-related improvements in the last year. The 65+ age group led in adopting home modifications to enhance energy efficiency, with 40% having upgraded or improved elements like insulation, draught-proofing, and new windows in the last 12 months.
Despite this positive trend, the perceived high cost associated with energy efficiency measures is a significant barrier to broader adoption, with a majority (60%) of respondents having not implemented any energy efficient measures at home in the last year. A third say reduced fuel bills would be the main factor to motivate them to undertake energy efficiency works and home retrofits.
Additionally, the study highlights a significant awareness gap between electricity and gas prices, with only 3 in 10 (28%) respondents knowing the current price they pay for electricity compared to 1 in 10 who know the price they pay for gas. Meanwhile, only 1 in 5 respondents switched energy suppliers in the last year in search of better deals, which is a low level of switching considering the price escalations and variety of more attractive deals available.
Tackling fuel poverty
One concerning revelation from the study is that over a third (36 percent) of respondents have experienced a lack of heat or hot water in their homes due to fuel costs. Fuel poverty was higher in the C2DE social class with 42 percent stating that they had gone without heat or hot water due to cost. There is no doubt that the energy crisis accelerated fuel poverty for many Irish households since early 2023, and this is a stark finding for a relatively affluent society such as Ireland.
Ciara Wrafter, Tax Partner
Room to improve
Ireland’s housing sector comprises of 1.7 million homes, contributing significantly to the nation’s energy consumption and emitting 29% of energy-related greenhouse gases. According to The Sustainable Energy Authority of Ireland, Irish homes surpass the industrial sector in emissions. The average floor area of Irish homes is larger than in other EU member states, and the emissions attributable to Irish homes are about 58% more than the average EU home.
In addressing Ireland’s housing emissions challenge, Ciara Wrafter, Tax Partner at KPMG, notes, “Currently, there is a stock of residential property in Ireland that needs to be retrofitted and renovated to help meet our climate targets. The tax system can play a role by incentivising property owners to take action. Tax policy can also be a powerful tool to promote sustainable behaviour by businesses and consumers.
The government aims to retrofit 500,000 homes to a BER of B2 or better by 2030, addressing energy efficiency and emissions, and the focus is enhancing insulation, upgrading windows, and transitioning to non-fossil fuel-based heating systems, predominantly heat pumps.
While the average retrofit cost to the consumer (after SEAI grants) is around €40,000, the government has committed €8 billion over eight years to incentivise and facilitate the process. However, the challenge lies in rapidly scaling up retrofits, requiring increased workforce training and public awareness to meet the ambitious 2030 target. With ambitious targets and a tight timeframe, Irish homeowners and other stakeholders will need to prioritise this issue. The introduction of government-backed low-cost finance loans for home retrofits in Q1 2024 will be a welcome enabler for those looking to retrofit their home.
Get in touch
Our Powering Tomorrow report shows that there is real support for the right large-scale energy projects in Ireland.
If you have any queries about how your business could seize this opportunity, please contact Colm O'Neill of our Energy, Utilities and Telecoms practice. We'd be delighted to hear from you.
Colm O'Neill
Partner, Head of Energy, Utilities & Telecoms
KPMG in Ireland
