Editor's note
Green shoots leads to growth
Green business and eco-innovation are key drivers in the fight to tackle climate change. The sector is regarded as a strong growth industry that has the potential to ignite the economy throughout and beyond recessionary times. The adoption of sustainable practices is a prevailing feature for Irish business – both as a means of reducing production costs and as an opportunity to enhance market prospects.
The vision for Ireland’s green economy is one where the country has its own national, green energy system, including a thriving marine renewable energy sector, and whereby it is positioned to export electricity to Europe. These are the real opportunities that will reduce our import reliance and lower our emissions, while at the same time create jobs and enhance competitiveness. In order for this to be achieved investment and commitment from government, industry and investors is required. Renewed collaboration between industry and academia must be encouraged, the pace of implementation must be swifter and the incentive to change greater if we are to become the global, green leaders we are pinning our hopes on being.
Globally, the market for environmental goods and services is estimated to be worth $700 billion and is expected to grow further to $800bn by 2015. Ireland is edging towards taking a considerable segment of the market share, but speed and intelligence are needed now if we are to make substantial advances in this area.
The green economy can make a significant contribution to Ireland’s economy by creating employment and export opportunities in renewable energy, energy efficiency and consultancy, waste management and recycling. There is also an opportunity for businesses to be more competitive by improving energy efficiency and reducing costs.
In 2008 the value of the Irish market was conservatively estimated by Forfás at €2.8bn and early indications suggest the green economy will continue to grow rapidly. If Ireland is to become a global leader in green business then significant investment is required. Last year, investment in clean energy reached $148bn - 60% higher than in 2006, and by 2030 this is expected to rise to $450bn. ResourceKraft, on page 24, are proof that investment and funding for high potential green businesses is available so long as the offering is good and has a global reach. On page 25 grant funding options are revealed and advice is provided on how to pursue financial support mechanisms. On page 11 Eleanor MacDonagh discusses a new and innovative tax framework on which a green IFSC can flourish.
Sustainable energy practices are already delivering significant savings to the Irish economy, with lowered business costs and household energy bills resulting from efficiency measures and reduced fossil fuel dependency. On page 19 the Sustainable Energy Authority of Ireland’s (SEAI) ambitious five-year strategic plan highlights the vision to transform Ireland into a global leader in green energy. Over the course of the five-year strategy, savings worth €6bn will be generated, at the same time supporting 5,000 to 10,000 jobs for each of the next five years.
Ireland is one of the most favourable locations for wind and ocean energy in the world, and viable enterprises and a robust R&D base is emerging. In this issue of Green Business we throw the spotlight on a number of entrepreneurs leading the way and whose innovative products and services are proving hugely successful in both the domestic and international markets. On page 16 Open Hydro is just one example of a pioneering company that is successfully pursuing opportunities presented by tidal energy.
Ireland’s location on the western edge of Europe, at the end of the energy supply chain, combined with the urgent need to establish a hedge against volatile oil and gas prices is further incentive to move to a low-carbon economy and develop high-potential and exportable green enterprises. We need to gain a significant foothold and a competitive advantage in the short term as competition for investment and ideas in this sector is growing across the globe.
A shift from being 90% dependent on imported fossil fuel to a major user of renewables, and, at the very minimum, meet an EU deadline for 16% of all energy to come from renewables by 2020, is ambitious yet imperative.
The green economy represents a hugely important sector that has the potential to be a key economic driver and the aim of the Green Business publication is to highlight key developments in this knowledge-based sector, which is now such an inherent part of the smart economy.
Niamh Mac Sweeney
Editor
