Timing is also a factor in the decision to focus on RSO2.1. While actions to promote the Circular Economy (RSO2.6) and to enhance biodiversity (RSO2.7) will be required in the programme area and are consistent with regional policy objectives, regional actions towards meeting these objectives are best delivered under two forthcoming national policy frameworks, not yet published. The “Whole-of-Government Circular Economy Strategy” will provide an overall national policy framework for the circular transition and will include measures to improve Ireland’s circularity performance above the EU average by 2030. Ireland’s “4th National Biodiversity Action Plan (2022- 2026)” has been drafted following a comprehensive review of national, European and international biodiversity policies and other relevant plans and strategies. It will take a “a whole-of-government, whole-of-society approach” and will be finalised and published following a period of public consultation later this year. Focusing investment on promoting energy efficiency is not intended to downplay the importance of addressing other areas of climate action, it simply recognizes that the Programme has limited resources and other sources of funding will have a role to play in delivering on the specific objectives under PO2. This focus remains aligned with the RSES, both of which emphasize that improving energy efficiency is vital to reduce energy consumption while improving economic growth. The supported actions also prioritise operations that respect the ‘energy efficiency first’ principle in support of objective of achieving a climate-neutral Union by 2050, as per recital 60 of Reg (EU) 2021/1060. In assessing the actions to be supported under RSO2.1, it was important to consider how they would complement other investments and how they could build on lessons learnt under previous programmes. Some consideration was given to supporting actions to promote energy efficiency in public sector buildings. CAP21 includes plans for a Public Sector Energy Efficiency and Decarbonisation Programme to address all major building portfolios in the sector. The NRRP and NDP funding is supporting pathfinder projects and there are commitments to develop an EPC delivery vehicle for up to €1 billion of privately-funded EPCs in public buildings. However, there are very significant short-term barriers to be overcome, including developing mechanisms and guidance to support off-balance sheet treatment, capacity building in the public sector and supply-side issues, all of which would impact on absorption and programme delivery. Instead, the focus will be supporting the regional delivery of the new National Retrofit Plan. This plan aims to reduce emissions from the Residential sector from 7 Mt CO2 eq. in 2018 to between 3.5-4.5 Mt CO2eq. in 2030. The overarching need to improve the energy efficiency of the Southern Region’s residential sector is evident from the low levels of audited households to register a Building Energy Rating (BER) between “A” and “B”. Between 2009 and 2020, only 19 per cent of audited households in Ireland registered a BER between “A” and “B”, with the corresponding ratios for households based in the Southern Region – particularly in the Mid-West and South-East – notably low and in most cases below the State average. The Southern Region’s challenge of improving household energy efficiency is also reflected in the fact that many households – particularly in rural based areas – continue to rely on solid fuels as their source of energy for their main space heating system . Between 2009 and 2020, 5% of the homes in Ireland – that were audited for a BER – noted that they used solid fuels as their main space heating fuel, with above average proportions predominantly registered in rural based areas across the Southern Region. The decarbonisation of the Eastern and Midland Region’s residential market represents a significant development challenge, particularly considering its size in absolute terms. Although the Eastern and Midland Region – specifically in Dublin and the Mid-East – recorded above average proportions of households with a BER between A” and “B”, these proportions continue to remain notably low in the more rural parts of the region. Households in Dublin and the Mid-East were generally not dependent on using solid fuels as their household’s heating fuel source. Under the NRRP, the Government is working with the Strategic Banking Corporation of Ireland and the European Investment Bank to develop a retrofit loan guarantee scheme and associated low-cost residential retrofit loans. This will make comprehensive home energy efficiency upgrades more affordable to middle- and high-income households and noncorporate landlords. It will address a key investment need in the regions. However, it is
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