Decoupling Emissions from Economic Activity 2022

• In 2022, greenhouse gas emissions from the Food, beverages and tobacco sector were 2.8% of total greenhouse gas emissions. The sector share of gross value added was 2.0% and the employment share was 2.2% in 2022 (See Figure 7.2 and Table 7.1).

• Compared with 2010, in 2022 GVA had risen by 69%, employment was up 25%, and emissions had increased by 9% (See Figure 7.1 and Table 7.1).

• Energy use in the Food, beverages and tobacco sector rose by 27% from 2010 to 2022 (See Figure 7.4 and Table 7.3).

Greenhouse Gas Emissions and Economic Activity in the Food, Beverages and Tobacco Sector

Figure 7.1 shows trends in greenhouse gas emissions, gross value added at constant (2022) prices, and employment numbers for the Food, beverages and tobacco sector from 2010 to 2022. Compared with 2010, in 2022 GVA had risen by 69%, employment was up 25%, and emissions had increased by 9%. 

Figure 7.2 shows the Food, beverages and tobacco sector share of total emissions, GVA, and employment. In 2022, emissions from the sector were 2.8% of total greenhouse gas emissions, compared with 2.5% in 2010. The share of GVA fell from 4.3% in 2010 to 2.0% in 2022, although GVA in this sector increased during the same time period. The employment share was 2.4% in 2010 and 2.2% in 2022, although again employment rose in absolute terms.

Table 7.1 shows data on levels of greenhouse gas emissions, GVA, and employment numbers for the Food, beverages and tobacco sector from 2010 to 2022, as well as the share of total emissions, GVA and employment. In 2022, emissions were 1.7 million tonnes of carbon dioxide equivalent, GVA was €9.9 billion, and employment in the sector was 58,317 persons.

Sources of Greenhouse Gas Emissions

Figure 7.3 shows sources of greenhouse gas emissions in the Food, beverages and tobacco sector in 2022. Non-transport fuel use was the source of 60% of emissions in 2022, while 28% came from electricity consumption, and 8% from transport fuel use.

Table 7.2 shows that the share of the main emissions sources each year from 2010 to 2022. The share of emissions from electricity fell fairly steadily across the time period while the share of emissions from stationary and road transport fuel combustion rose. 

Energy Use in the Food, Beverages and Tobacco Sector

Figure 7.4 and Table 7.3 shows energy use in the Food, beverages and tobacco sector, based on CSO Business Energy Use survey data. Energy use in the sector rose by 27% from 2010 to 2022, as fossil fuel use and electricity consumption increased. The increase in fossil fuel use was mainly due to a rise in natural gas consumption, while solid fuel use and mineral oil use fell.

Large dairy and other large food and beverage manufacturers are included in the EU Emissions Trading Scheme. In 2022, 50% of emissions from the Food, beverages and tobacco sector were included in the scheme (see Table 7.4). Participants in the scheme must obtain an emissions permit for each tonne of carbon dioxide equivalent emitted in the manufacturing plant. A certain number of free permits are allocated to each plant while the remainder must be purchased through the scheme. Between 2010 and 2012, free permits exceeded ETS emissions in this sector. From 2013 to 2022, free allowances were less than ETS emissions and in 2022 free permits covered around half of the ETS emissions from this sector. Participants in the EU Emissions Trading Scheme are entitled to full or partial relief from carbon tax, depending on the type of fuel used.

Interactions with other NACE Sectors

Figure 7.6 and Table 7.5 show shares of uses of Food, beverages and tobacco products. Outputs from this sector are mainly exported (41%) or used by households (37%).

Table 2.5 in the chapter on Agriculture shows interactions between the sectors. The Food, beverages and tobacco sector was the main user of agricultural, forestry and fishing products in 2020, making up 48% of the value of the output of these sectors.