Environment, Social and Governance Reporting: Data for the Enterprise Economy 2024

Introduction

Human and enterprise activity can cause pollution. Responsible enterprises are conscious of this and endeavour to ensure their activities minimise negative effects. This chapter shows how air pollution from enterprise and household activities has declined between 2021 and 2022. It also shows how pollutants can impact on the environment around us, for example by contaminating groundwater. We also see how environmental taxes and carbon credits can impact on behaviour and how they themselves can be effected by unexpected events e.g. COVID-19. 

The Household sector was the highest source of carbon monoxide emissions in 2022

In 2022, the Household sector was the source of 74% of carbon monoxide emissions, 58% of sulphur oxide emissions, and 56% of fine particular matter (PM_2.5) emissions. The Agriculture, Forestry and Fishing sector was the source of 99% of ammonia emissions. See Figure 3.1.

2022 showed a decrease in sulphur oxide emissions across sectors

Sulphur oxide emissions are measured in units of sulphur dioxide equivalents. The main source of sulphur dioxide in Ireland is burning coal and oil to heat homes and industries and to produce electricity. 

In 2022, there was a decrease in sulphur oxide emissions across all the sectors. The household sector remained the highest source of sulphur oxide emissions at 5.4 thousand tonnes SO₂ equivalent, a decrease from 7.5 in 2021. The industry sector was the next highest at 3.6 thousand tonnes SO₂ equivalent, a decrease from 5.1 in 2021. See Table 3.1.

Agriculture, Forestry and Fishing continues to be the highest source of nitrogen oxide emissions in 2022

Nitrogen oxide emissions are measured in units of nitrogen oxide equivalents. Emissions from traffic are the main source of nitrogen oxides in Ireland along with electricity generating stations and industry. Oxides of nitrogen contribute to the formation of acid rain and of ozone. 

In 2022, the Agriculture, Forestry and Fishing sector was the highest source of nitrogen oxide emissions at 37.7 thousand tonnes NO₂ equivalent, a decrease from 39.3 thousand tonnes in 2021. The Services sector was the next highest at 21.1 thousand tonnes NO₂ equivalent, showing a slight increase from 20.8 thousand tonnes in 2021. See Table 3.2.

Agriculture, Forestry and Fishing sector remains the highest source of ammonia emissions in 2022

The Agricultural sector accounts for virtually all ammonia emissions in Ireland. Grasslands ultimately receive the bulk of animal manures produced annually in Ireland, along with nitrogen in fertilisers. A proportion of the nitrogen in these inputs is volatilised into the air as ammonia.

In 2022, the Agriculture, Forestry and Fishing sector was the highest source of ammonia emissions at 127.8 thousand tonnes NH₃ equivalent, a slight decrease from 129.3 thousand tonnes in 2021. See Table 3.3.

The Industry sector was the highest source of NMVOCs emissions in 2022

Non-methane volatile organic compounds (NMVOCs) are emitted as gases from the use of a wide array of products including paints, paint strippers, glues, adhesives and cleaning agents. Several constituents of gasoline are important NMVOCs, which are emitted by combustion and evaporation. 

In 2022, the Industry sector was the highest source of NMVOCs emissions at 43.4 thousand tonnes NMVOC equivalent, followed very closely by the Agriculture, Forestry and Fishing sector at 43.2 thousand tonnes NMVOC. See Table 3.4.

A drop in fine particulate matter (PM2.5) emissions since 2021

There are many sources of particulate matter emissions including vehicle exhaust emissions, soil and road surfaces, construction works and industrial emissions.

Small particles can penetrate the lungs and cause damage. These are known as PM₁₀ (diameter less than 10µm) and PM_2.5 (diameter less than 2.5µm). In smokeless fuel zones, levels of particulate matter decreased after the ban on bituminous coal in Dublin in 1990. The ban was extended to other parts of Ireland subsequently.

In 2022, the Household sector was the highest source of fine particulate matter (PM_2.5) emissions at 6.0 thousand tonnes. The Industry sector was the next highest at 3.0 thousand tonnes PM_2.5.

In 2022, the Industry sector was the highest source of fine particulate matter (PM₁₀) emissions at 10.1 thousand tonnes. The Household sector was the next highest at 6.4 thousand tonnes PM₁₀. See Table 3.5 and Table 3.6.

Groundwater samples with low volumes of nitrates increased from 16% in 1997 to 23% in 2022

Nitrates can cause serious problems when they end up in groundwater or surface water by causing increased growth of algae and eutrophication of water systems. The drop in oxygen that comes with the presence of nitrates can lead to fish kills. A contributory factor here can be the practice of spreading animal wastes - which contain nitrates in high concentrations - on land to improve crops and pastures.

The proportion of samples with low volumes of nitrates (less than 5 mg/l NO₃ milligrams per litre of nitrates) in groundwater increased from an average annual 16% in 1995-1997 to 23% in 2022. The percentage of samples with 5-10 mg/l N0₂ also increased from 16% to 22% over the same period. Nitrate can persist in groundwater for a long time and accumulate at a high level through inputs from anthropogenic sources (mainly agriculture). The EU drinking water standard is limited to 50mg NO₃/L to avoid threats to human health. See Table 3.7.

Environment taxes decreased to €4.5 billion in 2022

Environment taxes (e.g Energy taxes, Transport taxes, Pollution taxes) were €4.4 billion in 2013 and rose to €5.2 billion in 2017. In 2021 environment taxes were €5.0 billion. There was a decrease of €0.5 billion in 2022 to €4.5 billion. The decrease was due to the introduction of a temporary reduction in excise duty on fuels in April.

As a percentage of total taxes, environment taxes were 9% in 2013 compared with 4% of total taxes in 2022.

Energy taxes in 2022 were €2.8 billion. Taxes on transport fuels (hydrocarbon oils) accounted for 54% of energy taxes while the combined carbon tax, carbon credits and the public service obligation (PSO) levy accounted for 41% of energy taxes. Carbon taxes increased by 22% to €807 million in 2022.

Transport taxes (mainly vehicle registration and motor taxes) were €1.7 billion with vehicle registration tax accounting for 45% of transport taxes.

Pollution and resource taxes were €18 million in 2022. See Figure 3.2 and Table 3.8.

In 2013 estimated environment taxes levied on households were €2.8 billion, representing a 64% share of total environment taxes. In 2022 household environment taxes were €2.5 billion which represented a 56% share of total environment taxes.

Environment taxes levied on service industries were €1.4 billion in 2022, representing a 31% share of total environment taxes. See Figure 3.3 and Table 3.9.

Fossil fuel subsidies increased to €2.9 billion in 2021

A subsidy is a fossil fuel subsidy if it is likely to incentivise fossil fuel activities. Fossil fuel activities include exploration, extraction, manufacturing, refining and distribution of fossil fuels on the production side, as well as research and development supporting any of the above. Fossil fuel consumption by all sectors of the economy is also fossil fuel activity.

Fossil fuel subsidies were estimated at €2.9 billion in 2021. In 2000 - the first year of the series - total fossil fuel subsidies were estimated at €1.5 billion in value. This increased to €3.1 billion in 2008. Between 2009 and 2016 the value was estimated as between €2.7 billion and €2.9 billion. Total fossil fuel subsidies increased in value in 2017 and 2018, reaching the highest value of the series at €3.3 billion in current prices in 2018. In 2020 fossil fuel subsidies fell to €2.5 billion, with the reduction in transport fossil fuel consumption due to the COVID-19 pandemic likely accounting for the decrease. The 2021 figure was a 16% increase on 2020. See Figure 3.4 and Table 3.10.

Petrol continues to have the highest effective carbon rate in 2021

The average effective carbon rate of a fuel is defined as net energy tax receipts divided by total tonnes of carbon dioxide emitted through combustion of the fuel.

The energy taxes included are excise duty, carbon tax, electricity tax, the national oil reserves agency (NORA) levy, the public service obligation (PSO) levy and emission permit purchases under the EU Emissions Trading Scheme.

Table 3.11 shows the effective carbon rate by sector. In 2020 and 2021, petrol had the highest effective carbon rate due to the higher rate of excise duty applied to petrol compared with other fuels. The effective carbon rate on petrol was €269 per tonne of carbon dioxide. The lowest effective carbon rates were on marine and aviation fuels due to excise, carbon tax, and NORA levy exemptions. For example, the effective carbon rate on jet kerosene was estimated at €3 per tonne of carbon dioxide emitted in 2021. 

The effective carbon rate on most fuels was higher in 2021 than in 2020, due to an increase in the rate of carbon tax. See Figure 3.5 and Table 3.11.