Mr. Ian Talbot:

I am grateful for the opportunity to address the committee today. In the interest of time, I will not read out the first paragraph of my written statement because it repeats the views of IBEC on where Ireland stands on its obligations. However, it will have been circulated.

In order to meet our climate targets, policy must be rooted in delivery, accountability and reform. Businesses are prepared to engage and to support the green transition but there are barriers constraining their full involvement. Security of supply is essential for businesses and communities. We consistently advocate the development of renewables to reduce our overall fossil fuel dependence and meet our climate targets. Delivering climate-aligned infrastructure by investing in renewable energy connections, electrification and smart grid technologies is essential to that objective. Without reliable energy, all businesses face operational risks, while the State risks losing its attractiveness for foreign direct investment, particularly in high-value manufacturing and data services. Equally, delays in customer connections and in generation and grid constraints can have broader economic implications, especially as the State competes globally for infrastructure investment and supply-chain capacity. This is because most other countries are seeking to do the same things at the same time.

Key barriers identified by our network include infrastructure bottlenecks. The opportunities presented by the green transition are significant but the delays and impediments to infrastructure severely hold us back from realising that potential. Onshore and offshore wind energy represent some of the most transformative economic and environmental opportunities for the State in the coming decades, but we need to put policies into operation that are conducive towards delivering renewables and the associated substantial benefits they present.

There are regulatory and planning challenges. While we acknowledge the planning reform that has taken place within the past 12 months, the planning system is still a significant barrier to infrastructure delivery. Further reform is required and the courts and all relevant planning authorities should be resourced to process the judicial reviews and appeals that hold up the planning system. Up to 76 windfarms across Ireland are projected to lose their planning permission between now and 2030, and a critical obstacle to delivery is that the planning system functions in essence as a reactive licensing regime. As such, the State's planning system has evolved towards negative development control rather than proactive infrastructure planning and is struggling to provide the type of system that is essential to co-ordinate grid upgrades, renewable energy integration and strategic infrastructure investment.

Our members in other areas are concerned about the pace of delivery of flood defences.

On skills and cross-sector learning gaps, we all acknowledge the critical importance of education, lifelong learning and the building of apprenticeship programmes. The unlocking of the National Training Fund to focus on the skills required for decarbonisation is critical to enhancing our competitiveness and underpinning progress towards our climate targets.

Let me refer to financial and capacity constraints. In terms of actions to help businesses to play their part, targeted supports, decarbonisation action plans and the expansion of circular economy initiatives are all essential to help businesses to decarbonise. Funding mechanisms like the climate planning fund and the green transition fund could be scaled up, while streamlining access to advisory services and capital grants will also help businesses to decarbonise. Unlocking access to Ireland's more than €160 billion in retail savings could help to mobilise the private capital needed to support the green transition.

Supporting the EU in the delivery of a capital markets union and the savings and investment union are all equally essential to ensuring private loan and equity finance are facilitated to ensure critical investment takes place, including in our ports. We must also continue our focus on the defence of critical infrastructure.

On the importance of being technology neutral, all renewable technologies – wind, biomethane, hydrogen and others – present a significant economic and strategic opportunity and will play a role in meeting our climate targets. An open mind should be kept on the continued evolution of technology such as nuclear technology.

We welcome the SEAI's multi-year study on decarbonising the electricity system. The State has within its grasp the potential to secure its energy future, but realising this vision will require significant progress across all areas I have referred to. The challenge is clear but so is the opportunity if we act with urgency and purpose. I thank the members for their attention. We look forward to their questions.