As Malta engages in a public consultation process on the Green Economy, the Irish Ambassador to Malta Jim Hennessy outlines Ireland’s recent experience

Irish Ambassador to Malta Jim Hennessy.

Ireland was honoured to be asked by Minister Leo Brincat and his colleague Minister Evarist Bartolo to provide a keynote speaker on the Green Economy for the official launch of Malta’s public consultation.

Like Malta, Ireland has gone through a lot of changes. In our case a shift to the Green Economy has helped speed our economic recovery and exit from the EU-IMF Programme of Financial support which will finish in December this year. The Irish Government’s focus is firmly fixed on achieving a successful and durable exit from our programme.

Ireland will be the first euro country to exit an EU-IMF programme of this type. In this context, all options that assist in supporting durable and sustainable future market funding will be considered.

Ireland’s EU Presidency 2013 slogan was Stability, Growth and Jobs. Sustainable growth is now part of our DNA.

Ireland is a country supremely well suited to sustainability. Our climate is temperate; our lush, green countryside is perfect for farming (and tourism); our seas are teeming with fish.

Our dairy industry has the smallest carbon footprint in the EU, while our beef industry, the largest net exporter in the northern hemisphere, is also among the lowest emitters. With our rainfall, in a world facing water shortages, and agriculture requiring 70 per cent of freshwater supplies for irrigation, our water stress index is one of the lowest and best in the world.

The growth in activity and employment in the Green Economy at EU level has significantly outpaced general economic growth

We are determined to manage these resources carefully, which will further enhance and demonstrate our green reputation. That is why we created the Origin Green concept, to build sustainability into our economy. To reinforce this new way of thinking and producing, 12 months ago, the Irish Government published Delivering Our Green Potential, a national policy statement on Growth and Employment in the Green Economy.

The overarching objective is to signal the Government’s recognition of the Green Economy’s potential and to encourage business investment in its diverse sectors such as financial services whose promotion has been so successful in Malta.

The Green Economy is one of the most dynamic and rapidly growing markets in the world. It is estimated that globally, in the five years to 2015, the market will have achieved an average growth rate of nearly four per cent per annum. Notwithstanding the challenging economic environment over the last five years, the growth in activity and employment in the Green Economy at EU level has significantly outpaced general economic growth. The value of sales of low carbon environmental goods and services in and from Ireland was estimated at €6.8 billion in 2010/11, contributing over four per cent to GDP.

Key drivers of growth in the Green Economy globally include the impact of climate change, the depletion of fossil fuels, diminishing natural resources, the cost of energy for domestic and business users, and consumer demand for more sustainable products. The EU has been to the fore in the drive to achieve economic growth in a manner that is sustainable and inclusive and has introduced a range of targets on emissions, waste reduction, energy efficiency and renewable energy use. These drivers of the Green Economy have created business opportunities for innovative enterprises who have responded to market demands by developing new products and services that use fewer resources and minimise waste.

Discussion on the Green Economy often conjures up images of wind turbines and solar panels. In fact, the term Green Economy covers a wide range of sectors that have the common objective of providing goods and services in a sustainable way that reduces impact on the environment. In Ireland, this covers activities such as sustainable food production, tourism, green financial services, green products and services, waste and water management, renewable energy, and energy efficiency.

The focus of activity in the Green Economy will vary from country to country, depending on its comparative advantages. Ireland’s particular strengths include abundant wind and wave resources for renewable energy, an outstanding natural environment (including clean water, clean air, etc) which support key sectors such as Agri-food, Tourism, Pharmachem and ICT, a strong R&D base, a number of exemplar companies with a proven international track record, and an international image as a “Green” island.

In the last two years, the Government has published a Strategy for Renewable Energy, a National Waste Policy, and a Sustainable Development Framework. Delivering Our Green Potential draws the various policies together in a cohesive and comprehensive way and identifies business and employment opportunities.

Ireland has now adopted a clear, whole-of-Government approach to developing the Green Economy. While many different ministries have a role to play in its implementation, progress is overseen by a Government subcommittee which is chaired by the Taoiseach (Prime Minister), Enda Kenny. The Minister for Jobs, Enterprise and Innovation, Richard Bruton, also chairs a consultative committee on the Green Economy which provides a forum for consultation with business representatives.

Encouraging progress has been made since Delivering Our Green Potential was published last year. Gains have already been made in relation to jobs, business competitiveness and exports. One significant development is the signing of a Memorandum of Understanding on energy cooperation between the Irish and UK governments in January 2013, which opens the potential for trade in renewable energy in the future.

In February 2013, the Irish Government committed €35 million to an Energy Efficiency Fund which aims to leverage at least a further €35 million from private investors to finance energy efficiency initiatives in the public and private sectors.

The first tranche of exemplar energy efficiency projects to be supported by the Fund were announced in June. As William Parnell, Ireland’s expert in the Green Economy said in his keynote address at the launch of Malta’s public consultation, the Irish experience in developing a strong Green Economy saw benefits in environmental protection, reduced business costs, as well as growth in trade and jobs. Innovative businesses will follow market opportunities to create new and sustainable products and services. The role of a Government seeking to support the Green Economy is to ensure that those opportunities are grasped.

Ireland looks forward to further cooperation with Minister Brincat and Minister Bartolo as Malta prepares for its own EU Presidency in 2017 and builds a green economy for the future.

Delivering Our Green Potential – the Irish Government’s Policy Statement on Growth and Employment in the Green Economy – is available at www.djei.ie/publications/enterprise/2012/Delivering_Our_Green_Potential.pdf.