The Clean Industrial Deal provides a framework for SMEs to become more competitive

The EU’s Clean Industrial Deal aims to align environmental, climate and industrial policy. Ireland recognises that industrial decarbonisation is not just an environmental, but also a competitive and economic imperative. Reducing industry’s reliance on fossil fuels insulates them from volatile energy prices.

 In renewable fuels, industry has access to a clean, lower cost source of energy. This makes them more resilient, retains jobs and creates a vibrant economy.

This also holds true for SMEs. Since becoming Minister of this Department, I have been focused on supporting small businesses, as they employ a large majority of workers in Ireland and are the backbone of the Irish economy.

Importantly Irish SMEs recognise the importance of being sustainable. A recent survey of over 300 SMEs carried out on behalf of my Department found that four in five businesses (83%) believe sustainability is important to them on a day-to-day basis. The survey was carried out by Amárach Research to identify what factors motivate small and micro businesses to become more sustainable.

 Not only do a large majority of SMEs in Ireland think sustainability is important, but many have also already taken steps to become so.

Almost two in three (63%) of the businesses surveyed had addressed the sustainability of their waste processing, two in five their water usage (41%), and nearly half (49%) had taken steps to address energy efficiency.

It’s also clear that climate change is already impacting Irish businesses, with almost a third reporting that they are being affected by climate change.

SMEs though have limited bandwidth to address the range of sustainability issues but with the right support, Irish SMEs can cut their emissions, lower their energy costs and become more competitive. Crucially there is money available from the government to help businesses to take the necessary steps to do so.

Small businesses in Ireland are supported through a number of government agencies: the Local Enterprise Offices (LEO), Enterprise Ireland and the Sustainable Energy Authority of Ireland (SEAI). The grants they offer include energy audits, which show SMEs where they can make savings and reduce emissions. Once a business knows where they should invest, there are grants available towards buying energy efficient equipment and building retrofits. Finally, there are loans available to SMEs, farmers, fishers and mid-caps to fund sustainability measures.

 The Clean Industrial Deal seeks to address the high levels of energy costs across Europe, and it is vitally important to me that SMEs and industry in general reap the rewards of the green transition.

In Ireland, creating the right conditions, such as ensuring a stable and affordable energy market, will incentivise private investment in decarbonisation which in turn, will help us to reach our climate goals.

Huge work is being undertaken to upgrade Ireland’s electricity grid to ensure that it has the capacity and resilience required to support our decarbonisation efforts and our ambition to become renewable energy leaders.

 Under the Deal, the Industrial Decarbonisation Accelerator Act will also create new market opportunities for SMEs producing clean and sustainable products.  SMEs that develop or supply low-carbon materials, energy-efficient equipment, digital solutions for emissions tracking, or circular economy innovations will find increased demand from larger industrial players needing to decarbonise their operations.

 The Deal also aims to streamline the regulatory environment, making it easier for SMEs to navigate compliance and access support.  It will streamline permitting processes for decarbonisation projects, which can benefit SMEs by reducing time and costs to deploy clean technologies, making it easier to participate in industrial modernisation projects, and enabling faster market entry for innovative solutions.

 In implementing measures in the Clean Industrial Deal, Ireland will seek to strike the right balance between strengthening competitiveness and resilience without compromising fundamental principles of openness and a level playing field.  In particular, any such measures to enhance resilience will be carefully designed to avoid negative impacts on both costs and our open, rules-based trade policy.  We must also be careful, in taking measures to enhance our resilience, to ensure that we do not inadvertently add to administrative burdens or slow down the roll out of sustainable technologies.