Priority 2: LOW-CARBON ENERGY EFFICIENT REGIONS The RSES for the Southern Region (2020) and the RSES for the Eastern and Midland Region (2019) both have climate action and the protection of the environment at their core. Each RSES includes Regional Policy Objectives (RPOs) consistent with the eight specific objectives for the ERDF under policy objective 2 [‘PO2’] “A greener, low- carbon transitioning towards a net zero carbon economy and resilient Europe by promoting clean and fair energy transition, green and blue investment, the circular economy, climate change mitigation and adaptation, risk prevention and management, and sustainable urban mobility”. CR2019 and the National Energy & Climate Plan 2021-2030 highlighted that economic growth and GHG emissions had yet to be decoupled, warning that Ireland was falling further behind in decarbonising its economy and the lack of progress would make the challenge of meeting EU obligations more difficult, while also increasing the cost of future action. National projections on GHG indicated that cumulated emissions would be 20 percentage points short of the reduction target. CR2020 reported some progress and acknowledged that the publication of the Climate Action Plan 2019 represented “a much-needed breakthrough and a stepping stone in the transition to a climate neutral and circular economy” but stated that greenhouse emissions in the transport, building and agriculture sectors are high and on a rising trend. It suggested “there is scope for improvement in…reducing greenhouse emissions, increasing the share of renewables, energy efficiency and poverty reduction”. The independent Needs Analysis for ERDF and ESF+ in Ireland (2020) also identified the need to accelerate progress to address climate change objectives and the green economy. Potential for development was identified in various sectors, including investment to enhance the energy efficiency of the building stock, to reduce waste, to promote the circular economy and to reduce the use of private transport, while noting that “this will require a range of policies and a scale of resources outside of the scope of the [ERDF] funds.” The Climate Action and Low Carbon Development (Amendment) Bill 2021 recognizes the scale of the climate challenge and increases the ambition to “support Ireland’s transition to Net Zero and achieve a climate neutral economy by no later than 2050”. The Climate Action Plan 2021 [‘CAP21’] provides a sectoral roadmap for meeting Ireland’s 2050 national climate objective. CAP21 estimates that €125 billion of capital investment (additional and reallocated) in low-carbon technologies and infrastructure will be required in the period 2021 to 2030. This includes investment of €51 billion in transport and €35 billion in buildings. The largest incremental increases are foreseen in buildings (75%), energy (50%) and agriculture (50%). CAP21 identifies significant public investment under the NDP, complemented by investment under the NRRP, the EU Just Transition Fund (JTF) and the ERDF but notes that relying solely on public funding “is neither affordable nor adequate to the scale of the challenge to be addressed” and identifies a role for private investment, regulation and taxation policy. The scale of the investment required to meet climate action ambitions in the programme area is reflected in the decision to focus programme resources on one specific objective – promoting energy efficiency and reducing greenhouse gas emissions (RSO2.1) – rather than attempting to spread the investment over multiple specific objectives. Simply put, while there are many other investment needs in the programme area under PO2, these will have to be met by other sources of public and private investment. CAP21 identifies some of the other sources of investment that will support investment needs under PO2. Measures in the energy area, including those envisaged under RSO2.2 and RSO2.3, will be financed “through a variety of mechanisms in combination with private investment: direct Exchequer capital supports; displacing fossil fuel imports; the Public Service Obligation (PSO) Levy; and, in respect of investment in the regulated gas and electricity networks by the system operators, through network charges”. The NRRP commits €518 million towards decarbonising projects such as retrofitting, ecosystem resilience and regeneration, climate mitigation and adaptation, and green data systems (RSO2.1, RSO2.4, RSO2.7). The NDP and the NRRP commit significant funding towards Sustainable Urban Mobility (RSO2.8). EAFRD will continue to play a role in supporting resource efficiency and energy efficiency in agriculture, food and forestry sectors.
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