Business In Ireland 2025 - Emissions and Energy Use by Enterprises

The European Green Deal aims to achieve climate neutrality, targeting net-zero greenhouse gas emissions across the EU by 2050. At the national level, Ireland has committed to reducing emissions by 51% by 2030 (compared to 2018 levels) and to achieving climate neutrality by 2050. Beyond these legally binding targets, the reduction of greenhouse gas emissions and other air pollutants is also important for safeguarding ecosystems and contributing to good public health.

As such, all sectors of society, including the enterprise economy, have a role to play in driving emissions reductions. This chapter shows how:

• The enterprise economy (Industry (including Construction) and Services) accounted for 40% of greenhouse gas emissions in 2023, with the Electricity, Gas & Steam sector (14%) and Manufacturing (12%) accounting for over a quarter of total national emissions.
• Emissions intensity (greenhouse gas emissions per euro of Modified Gross National Income or GNI*) fell by a quarter between 2018 and 2023, meaning there is less greenhouse gas emitted for each unit of economic activity.
• The Electricity, Gas & Steam and Manufacturing sectors accounted for almost half of the 11% decline in Ireland’s total national greenhouse gas emissions between 2018 and 2023.
• Emissions from the Electricity, Gas & Steam sector were down 25% between 2018 and 2023, likely driven by a reduction in the use of solid fuels in Ireland for energy production, while emissions from Manufacturing were down 9% over the same period.
• The Manufacture of Cement and Other Non-metallic Minerals sector accounted for almost half (47%) of the emissions from Manufacturing in 2023, or 6% of total emissions.
• The Agriculture sector (38%) was the largest contributor to greenhouse gas emissions in 2023, while activities of Households and the Transportation & Storage sector contributed 20% and 5% respectively.

Greenhouse gas emissions fell by 10.8% between 2018 and 2023

Data on greenhouse gas emissions by sector are reported in the CSO, Economic Trends in High Emitting Sectors releases.

In 2023, greenhouse gas emissions were 10.8% lower than in 2018, mainly due to decreases in emissions from electricity generation and household heating emissions. The National Climate Objective is for 2030 emissions to be 51% lower than 2018. 

Between 2018 and 2023 emissions from the Electricity, Gas & Steam sector fell by 25.3%, or 2.6 million tonnes of carbon dioxide equivalent, while emissions from Households fell by 20.4% or 2.8 million tonnes. Emissions from Manufacturing fell by 9.2% or 0.7 million tonnes over the same period.

In 2023, greenhouse gas emissions were 54.9 million tonnes of carbon dioxide equivalent, which was 4 million tonnes, or 6.8%, less than the 2022 figure. This was driven largely by decreases in emissions from the Agriculture, Forestry & Fishing sector (down 4.8% or 1 million tonnes of carbon dioxide equivalent) and the Electricity, Gas & Steam sector (down 21.6% or 2.1 million tonnes of carbon dioxide equivalent).  

The Industry (including Construction) sector was the source of 30.3% of greenhouse gas emissions in Ireland in 2023, with the Electricity, Gas & Steam sector (13.8% of total emissions) and Manufacturing (12.3% of total emissions) contributing most significantly. The Services sector was the source of 10.1% of emissions in the year, with the Transportation & Storage sector (4.5%) being the most significant source of greenhouse gas emissions in the Services sector.

The Agriculture, Forestry & Fishing sector was the largest contributor to greenhouse gas emissions in 2023 accounting for 38.0% of the total, with a further 20.0% coming from the Household sector. See Figure 2.1 and Table 2.1.

In 2023, total greenhouse gas emissions per euro of gross value added was over a third lower than in 2018

Comparing greenhouse gas emissions and output or value-added allows us to measure whether economic growth is becoming less emissions intensive.

In 2023, total greenhouse gas emissions per euro of gross value added (GVA) was over a third lower than in 2018 (86 grams in 2023 compared to 131 grams in 2018), suggesting that the economy is becoming less emissions intensive. This decrease in GVA intensity was observed across most sectors of the economy.

When measured against Modified Gross National Income (GNI*), which removes some of the globalisation effects from the National Accounts, economic intensity in 2023 was higher at 148 grams, but still showed a significant reduction since 2018, down 25.5%.

The Agriculture, Forestry & Fishing sector had an economic intensity of greenhouse gas emissions of 4,696 grams per euro of GVA in 2023, which while far higher than the average for all sectors, has shown a significant decrease over time, down 37.3% since 2018. Similarly, the Electricity, Gas & Steam sector had a higher than average economic intensity in 2023, at 1,344 grams, and also showed a notable decrease since 2018, down 14.9%. See Figure 2.2 and Table 2.2.

The Industry sector accounted for 46% of carbon dioxide emissions in 2023

The three main greenhouse gases are carbon dioxide, methane and nitrous oxide. Carbon dioxide emissions, largely the result of burning fossil fuels such as coal, turf and petroleum products for heat, power and transport, are the main type of greenhouse gas produced in Ireland.

In 2023, 46% of carbon dioxide emissions were from the Industry (including Construction) sector, 32% came from Households and 16% were emitted by the Services sector, while the Agriculture, Forestry & Fishing sector was the source of 94% of methane emissions and 92% of nitrous oxide emissions. See Figure 2.3.