The fund will be used by Enterprise Ireland and IDA Ireland to support client companies to reduce their industrial emissions between now and 2030 through the Environmental Aid scheme.
Minister Burke has also unveiled the Industrial Heat Decarbonisation Roadmap, outlining the future energy landscape for manufacturing. It highlights essential steps to decarbonise heat usage in manufacturing sectors, detailing available supports for companies, upcoming regulations and the supporting policies.
Minister Burke said that the funding and roadmap combined were an important signal for industry: "Industrial emissions account for around 10% of Ireland’s total emissions, so manufacturing businesses have an important leadership role to play in reducing Ireland’s overall carbon emissions. I’m ringfencing €300 million in funding to give these companies certainty that the government will support them in making these significant investment decisions so that Ireland can achieve our 2030 abatement target. Furthermore, the roadmap ensures that businesses and government are working to a shared plan."
Most industrial emissions come from companies in sectors like food and beverage, cement, pharmaceuticals and chemicals, which receive support from Enterprise Ireland and IDA Ireland.
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Recently, Diageo unveiled plans, backed by Enterprise Ireland, to reduce on-site emissions at St James’s Gate Guinness Brewery. This investment aims to completely eliminate fossil fuel use in brewing operations, reducing greenhouse gas emissions at the site by over 90% under the Science Based Targets initiative's net zero definition.
Minister for Trade Promotion, Digital and Company Regulation Dara Calleary TD said :
"Achieving the targets set out in the government’s Climate Action Plan for industry of a 35% reduction by 2030 will only be done if every company, large and small, decarbonises. While it’s something we all have to do, it should also be seen as an opportunity for businesses to improve their competitiveness.
"Increasingly large companies require their supply chains to meet new sustainability conditions, and in addition, procurement processes also prioritise sustainable companies. Becoming more sustainable can help a business to attract and retain talented staff, as well as meeting the growing customer demand for greener products and services."
The Environmental Aid scheme is among several government grants and supports offered to companies aiming to initiate or advance their efforts in decarbonising their operations.
Leo Clancy, CEO Enterprise Ireland, stated:
"We are all on a journey towards a more sustainable future, and businesses have an important role to play in that by ensuring they are contributing towards our transition to a low carbon economy. It requires a whole of society approach, and supporting Irish-owned businesses on their journey towards a greener future is a key priority for Enterprise Ireland. It is also increasingly important for companies to demonstrate they are taking these steps as there is increased expectations from customers, employees, partners and investors.
"This €300 million fund announced today will help companies supported by Enterprise Ireland to take further steps to reduce their emissions. And we also welcome the publication of the Decarbonisation of Industrial Heat Roadmap, as it will support companies as they continue to navigate this journey. The transition to a greener future is no longer just the right thing to do, it is a must do."
Michael Lohan, CEO IDA Ireland, said: "Sustainability is a key pillar in IDA Ireland’s strategy, and we have an extensive programme of engagement underway with client companies to remove greenhouse gases (GHG) from their operations. Almost all of our top 100 clients have made net zero carbon pledges with many having net zero decarbonisation targets by 2030. IDA Ireland is actively supporting clients to decarbonise their operations through Green Capital support. Since 2022, IDA Ireland client companies have invested over €200 million aimed at removing 70,000 tonnes of GHG from their operations."
