Ireland’s transition to offshore renewable energy and other energy measures will cost at least €129bn in investment between 2024 and 2030, a report by the Davy Group estimates.
This equates to over €18.5bn investment per year or 6.8% of modified Gross National Income (GNI) and is comparable with international norms of c. 5% of GNI, the wealth management and capital markets group says.
This is roughly equivalent to €25,000 per individual by 2030, the report by Dr Fergal McNamara, senior policy director at Davy, says.
The Davy White Paper, published today and entitled “Investing in tomorrow: Shaping a Net Zero future” examines how this investment will be funded and by whom.
Of the €129bn investment on dedicated energy transition measures, the private sector will account for 85% of planned investment, it says.
This will be driven by electrification of energy and transport and retrofitting of homes and businesses,
Dr McNamara’s analysis is focused on dedicated energy transition measures, but he notes that total investment on measures substantially attributable to climate, including tens of billions of euro of planned investment under the National Development Plan, will likely exceed €150bn.
This makes it the largest-ever investment by the State, households and businesses.
“Though these are punchy numbers, they dwarf the environmental, economic, political and social costs of doing nothing, as evidenced by the destruction and cost of recent flooding in East Cork. EU fines and reputational damage will also keep Ireland’s “feet to the fire” to deliver on climate change objectives or suffer even greater cost over the longer term, he said.