Rose Conway-Walsh (Mayo, Sinn Fein)
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333. To ask the Minister for Enterprise, Trade and Employment if he is aware of the ESRI SME Investment Report 2024: Developments Between 2016 and 2023; the steps he is taking to address the reduction in climate- and energy-efficiency–related investments by SMEs; and if he will make a statement on the matter. [28819/25]

Peter Burke (Longford-Westmeath, Fine Gael)
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I am aware of the findings of the ESRI SME Investment Report 2024: Developments Between 2016 and 2023, which highlight a reduction in climate and energy efficiency related investments by small and medium-sized enterprises (SMEs) in those years.

The findings are, of course, concerning as it is essential that small and medium-sized businesses are supported and encouraged to become more energy efficient. By doing so businesses will not only become more sustainable, they will also reduce their energy costs and become more competitive. In recent years the Government has made a number of supports available to help businesses to do so.

Businesses can now access advice and financial supports to reduce their water consumption, waste, electricity and gas bills. Through the Sustainable Energy Authority of Ireland’s (SEAI) Support Scheme for Energy Audits (SSEA) SMEs can access a €2,000 voucher to cover the cost of a professional energy audit, to identify where energy is being used inefficiently and highlight opportunities to cut costs and reduce emissions. Most audits are fully funded and carried out by SEAI-registered experts. Similarly, Enterprise Ireland’s Climate Action Voucher (CAV) offers up to €1,800 to fund two days of independent consultancy to help companies to identify and act on energy-saving opportunities.

Once businesses know what areas they want to invest in, there is a further range of supports available to fund energy efficient equipment and building retrofits. The Local Enterprise Offices offer the Energy Efficiency Grant which can be used to invest in new energy efficient equipment, smart control systems or heat recovery. Recognising the importance of this support, I announced a series of revisions to its terms last year, including raising the grant rate to 75% and the maximum investment ceiling to €10,000. This led to a marked increase in its uptake, and by the end of 2024, 289 small businesses had availed of grants with a total value of €2.28 million. That strong demand has continued into 2025. So far this year 268 small businesses have availed of grants with a total value of €2.19 million.

The SEAI’s Business Energy Upgrades Scheme which opened for applications late last year meanwhile, assists the business, agricultural, public body, or non-profit sectors to introduce energy efficient and renewable measures into their buildings. I’m really pleased that there has been a strong uptake of this Scheme too with over 211 draft applications in progress and 94 offers made to a value of €2.05 million.

There are also loans available to SMEs to fund sustainability measures. The €500 million Growth and Sustainability Loan Scheme (GSLS) delivered by the Strategic Banking Corporation of Ireland has unlocked significant funding to enable SMEs, including farmers, fishers and mid-caps to avail of long-term finance at a lower cost to expand, diversify, improve productivity and invest in energy efficiency and sustainability. As of 31 December 2024, 1,427 loans were approved for the amount of €313 million.

Lastly I note that the ESRI report calls out certain sectors where the decline in investment is steepest. My officials engaged with a number of these sectors, including hotels, restaurants and retail, in the preparation of the soon to be published Roadmap for the Decarbonisstion of Commercial Buildings. My Department will continue to work with these sectors to provide them with the supports they require through the grants documented above, and through those offered by Fáilte Ireland such as the Climate Action Programme.

The support is fully subsidised and gives SMEs in the Tourism Sector access to a dedicated expert Advisor who will work with them on a one-to-one basis to assess their current operations and create a tailored, practical action plan. This enables the SME to get clear, unbiased guidance on how to reduce emissions, improve energy use, and explore available funding opportunities — all designed around the specific needs of their business.