Simon Coveney (Cork South Central, Fine Gael)
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Over the next decade the transition to a low carbon economy will substantially alter the business environment. My Department is actively promoting and financially supporting decarbonisation across our enterprise base. We have integrated climate action into all aspects of the Department remit and our enterprise agencies’ activities. 'Integrating Decarbonisation and Net Zero Commitments' has been a key policy priority under the White Paper on Enterprise.

The Government seeks to foster strong, resilient businesses, that are successful and sustainable, while preparing to meet our sector’s carbon reduction targets. We are determined to ensure decarbonisation happens in a way that improves the competitiveness and resilience of our economy, businesses and employment.

In the period 2019-2023 my Department provided €32,495,887 in grant funding to businesses through the Local Enterprise Offices, Enterprise Ireland and IDA Ireland to support climate action initiatives.

The funding allocation for 2024 is approximately €18 million though the exact amount spent on decarbonisation programmes will still subject to change, as the agencies have scope to prioritise projects within their core budget and drawdown is subject to the delivery of supported projects. The demand for decarbonisation supports from enterprises is continuing to accelerate.

As with all funding, there remains an interim period between the allocation for a project and the payment drawdown, especially for larger decarbonisation investment projects. Our agencies continue to accelerate support for businesses through Environmental Aid, Energy Efficiency Grants, and Green for Business which was a relaunch of the successful Green for Micro scheme, expanded to included larger SMEs.

The Green Transition Fund commits €55 million in funding from 2022-2026 as part of Ireland’s National Recovery and Resilience Plan and funded through the EU’s RRF. We have seen a continued increase in the uptake of the fund by businesses, with further acceleration expected in 2024.

My Department continues to provide non-financial supports such as the Climate Toolkit 4 Business, which is a carbon calculator and action plan generator tool and it provides businesses with an understanding of their current carbon footprint and provides information on resources available to reduce their emissions. The target audience for the Toolkit is SMEs and micro enterprises who wish to start their decarbonisation journey and that do not yet have a sophisticated understanding of their carbon emissions or the steps they should consider reducing their emissions. The toolkit directs businesses to the appropriate financial support to their business size and sector.