Economic Trends in High-emitting Sectors 2023

Trends and Changes in Territorial Greenhouse Gas Emissions, Population and Economy, 2011-2023

Ireland's greenhouse gas emission targets and sectoral budgets are based on 2018 emissions measured on a territorial basis. Figure 1.1 shows the trends in territorial greenhouse gas emissions, territorial greenhouse gas emissions per capita, and territorial greenhouse gas emissions per euro of modified gross national income (GNI*) at constant prices, from 2011 to 2023. 

In 2023, greenhouse gas emissions were 5% lower than in 2011, greenhouse gas emissions per capita had decreased by 18%, and greenhouse gas emissions per euro of GNI* at constant prices had fallen by 39%. The graph shows that there was a small drop in emissions over the time period against a background of a 15% population increase from 4.6 to 5.3 million persons and GNI* growth of 55% from €188 billion to €291 billion (see Table 1.1).

Figure 1.2 shows the percentage change in territorial greenhouse gas emissions between 2011 and 2023, along with the percentage change in selected demographic and economic indicators across the same time period (or across the time period 2011 to 2022 in the case of Census data).

Greenhouse gas emissions decreased by 5% during the time period while population, life expectancy, housing stock, occupied dwellings, employment, and modified gross national income at constant prices all increased.

The Climate Action Plan targets were set against a background of increasing population and longer life-expectancy. Ireland’s population increased by 46% from 1991 to 2022, while life expectancy increased by 6.3 years for females and by 8.6 years for males in the same time period (see Table 1.2). Population projections from the CSO show that continued population growth can be expected, to potentially 7 million persons in 2057.

Aggregated Sector Shares of Emissions and Economic Indicators 2023

Figure 1.3 and Table 1.3 show shares of territorial greenhouse gas emissions, employment numbers, gross value added, and environmental taxes and subsidies for the Agriculture, Forestry & Fishing sector, the Industry sector, the Services sector, and the Household sector in 2023.

The Agriculture, Forestry & Fishing sector accounted for 38% of emissions in 2023, 4% of employment, and 1% of gross value added. The Industry sector was responsible for 20% of emissions, 18% of employment, and 36% of gross value added in 2023 while the Services sector accounted for 17% of emissions, 78% of employment, and 63% of gross valued added. The share of emissions from the Services sector was low compared with the share of gross value added and employment.

The remaining 24% of emissions in 2023 were from the Household sector. As Households are included in this release as consumers, there is no share of gross value added or employment for this sector. However, the Household sector paid the highest share of environment taxes at 60% in 2023, while receiving 23% of environmental subsidies.

Highest Emitting Sectors in 2023

Figure 1.4 shows the share of territorial greenhouse gas emissions in 2023 by sector, for the highest emitting sectors. The sectoral breakdown of greenhouse gas emissions throughout this release assigns emissions from road transport to the economic (NACE) sector of the vehicle operator, and emissions from fossil fuels used to generate electricity to the final user of the electricity. Emissions from international aviation and water transport are not included. Road transport emissions from non-residents were not assigned to a NACE sector to maintain consistency with National Accounts data on gross value added and employment, while road transport emissions by Irish residents abroad were not included as they do not feature in Ireland's greenhouse gas emissions targets or sectoral ceilings.

Agriculture had the highest percentage share of emissions in 2023 at 38.1%. Households (as consumers) had the next highest share at 24%, followed by Manufacture of Cement & Other Non-Metallic Minerals (6.1%), Land Transport (3.4%), Information & Communication (3.3%) and Manufacture of Food, Beverages & Tobacco (2.8%). Together these six sectors accounted for 78% of greenhouse gas emissions in 2023.

Each of these sectors is the focus of a chapter in this release, containing further analysis of factors affecting emissions and the potential impact of reducing emissions in these sectors. Emissions from each of the remaining sectors are around 2% of the total or less.

Economic Activity of Highest Emitting Sectors in 2023

Table 1.4 shows the share of territorial greenhouse gas emissions, employment numbers, gross value added (GVA), and goods and services exports for the highest emitting sectors in 2023.

Figure 1.5 shows a comparison across the five highest emitting NACE (production) sectors of territorial greenhouse gas emissions, GVA, and employment numbers in 2023. As households are included in this release as consumers, there is no contribution to gross value added or employment data for the household sector. 

In 2023, of the five highest emitting NACE sectors (excluding households), the Information & Communication sector had the highest share of GVA at 20.3%. In terms of employment, the Information & Communication sector also had the highest share of the five at 6.5%, followed by Agriculture at 3.8%. Goods exports from the Manufacture of Food and Beverages sector were 10.6% of total goods exports in 2023, while services exports from the Information & Communications sector were 57.9% of total services exports in 2023 (see Table 1.4).

Greenhouse Gas Emissions and Economic Activity of the Highest Emitting Sectors, 2011-2023

Figures 1.6-1.8 and Tables 1.5-1.7 show territorial greenhouse gas emissions, gross value added, and employment data for the highest emitting sectors from 2011 to 2023. In 2023, the six highest-emitting sectors accounted for 78% of emissions with 54% coming from the five highest NACE (production) sectors and 24% from Households as consumers. By comparison, the five NACE sectors made up 24% of GVA in 2023, and 15% of total employment.

Figure 1.6 and Table 1.5 show that the Agriculture sector was the source of around one-third of emissions in 2011, increasing to 38% in 2023. The Household share decreased from 32% in 2011 to 24% in 2023. The emissions share of Manufacture of Cement & Other Non-Metallic Minerals went from 4% to 6% over the period while the emissions share of Land Transport went from 5% to 3%. Emissions from the Information & Communications sector increased steadily from 1% in 2011 to 3% in 2023. The Manufacture of Food, Beverages & Tobacco sector made up around 3% of emissions every year from 2011-2023.

Figure 1.7 and Table 1.6 show that the Information & Communications sector share of GVA increased from 9% in 2011 to 20% in 2023. The next highest sector share in 2023 was the Food, Beverages & Tobacco sector at 2%, down from 4% in 2011. The Agriculture and Land Transport sectors each made up of around 1% of GVA every year from 2011 to 2023, while the Cement & Other Non-Metallic Minerals sector was at less than 1%. 

Figure 1.8 and Table 1.7 show that the Agriculture share of employment was around 5% in 2011 and around 4% in 2023. The Information & Communications sector share of employment was 5% from 2011 to 2019 before increasing to 7% in 2023. The employment shares of the Land Transport sector and the Manufacture of Food, Beverages & Tobacco sector remained fairly steady at around 2-3% across the thirteen years, and the share of the Manufacture of Cement & Other Non-Metallic Minerals sector was similarly steady at less than 1%.