Inflationary pressures across the economy are building for both businesses and households. From a business perspective, the knock-on impact of rising costs on business investment will be significant and operate through three main channels:
- Rising construction costs will make new investments and housing completions relatively more expensive.
- Concerns about rising energy and commodity costs may take precedence over new investments when it comes to the management of company resources in the short run.
- Uncertainty about the future path of both energy prices and consumer demand in the economy will slow decision making on new investments.
Together these impacts will weigh on new investment in 2022 and into 2023 but may create new opportunities in the longer run.
Summary / Key measures
The set of measures in this section seeks to build resilience in the economy against ongoing high energy costs while supporting energy security and accelerating low carbon and resource-efficient investments.
1
Undertake a comprehensive review of Ireland's energy security and take action to address risk areas.
Cost: €1m
2
Provide an additional €450m to drive low carbon investment in industry by scaling up and expanding industry supports
Cost: €450m (45 million in 2022)
3
Ensure Accelerated Capital Allowances are in place for low carbon alternatives
Cost: Cash flow only
4
Work within new EU Directive rules to 'Green' our VAT rates
Cost: €5m (based on UK estimates for similar)
5
Review the R&D tax credit to ensure it supports low carbon technology
Cost: €0m
6
Finance the development of hydrogen and biogas projects
Cost: ETS Revenues
7
Introduce a new microgeneration scheme and capital grants for on-site renewable technologies
Cost: €10m
8
Rethink the step down of the BEV vehicle BIK exemption
Cost: No Revenue data available but minimal cost
9
Support industry efforts to adopt circular economy practices and business models
Cost: €2m
10
Ensure excise rates assist in the move toward the uptake of alternative fuels
Cost: €0m
11
Ensure investment supports are low carbon friendly
Cost: €0m
12
Extend the Low Emission Vehicle Toll Incentive (LEVTI) scheme
Cost: €2m
