National energy related emissions decreased by 8.3% in 2023 reaching their lowest level in thirty years. The data shows good signals of progress, but Ireland will have to increase the rate of change significantly to deliver on its legally binding targets.
Ireland's total energy demand increased by 0.8% in 2023, led mainly by increased energy demand for transport (up 4.5%) and from the commercial services sector (up 6.9%), which includes data centre demand. Increased demand for transport energy came mainly from private car use and aviation, which accounted for 40% and 22% respectively.
In the residential sector, demand for gas, coal, peat, electricity, and oil all dropped in 2023, with energy demand reaching its lowest level in 25 years. Multiple factors are likely to have played a role in this including a reduced need for home heating due to a warmer winter, high energy prices and increased home energy upgrades.
The data shows that 2023 was a record year for renewables in our energy mix, which contributed to our emissions reduction. The impact of this was somewhat balanced by demand growth, meaning that despite the reduction in energy-related emissions, at 82.7% Ireland remains highly dependent on fossil fuels to satisfy our energy needs. It is clear from the data that the pace of growth of energy demand needs to be strategically managed and timed, so that calculated decisions are made about where and when growth should happen.
There is no room for complacency as, despite progress in 2023, early 2024 data suggests that residential demand for gas and heating oil increased this year, indicating that residential energy demand and emissions may go up in 2024. It is also likely that Ireland's transport and electricity emissions will exceed their sectoral emission ceiling in the first carbon budget (2021-2025). Any emissions that exceed the first carbon budget are carried over into the second carbon budget, where they will need to be addressed by even more intensive policies and measures.
Recent reports indicate that Ireland could face considerable fines for not delivering on its climate commitments. With effort, investment and national support to speed up deployment of offshore wind, solar, district heating, heat pumps and electric vehicles - Ireland can transform the rate of technology deployment to boost climate action.
This year's data includes a number of welcome achievements in terms of renewables and emissions reductions. The question now is do these signals mark the start of a tipping point for critical mass action in our national energy transition. We need bold, courageous and committed leadership nationally and across all sectors to avoid missing our non-negotiable carbon budgets and EU targets.
Acting immediately is essential; we can see already that concerted effort and actions deliver results. It's not just the end goal of emission reductions by 2030 or 2050 that matter, but reducing our emissions each and every year, to comply with science-based carbon budgets and sectoral ceilings. These are our non-negotiables.
Thanks to Government support and the efforts of many citizens and businesses over the last few years, we are seeing progress. The changes we are making make a difference. Ireland has set a strong legal basis and significant momentum that we now must capitalise on. The incoming Government comes at a time where a re-doubling of effort could see us realising the urgent change needed in our shift away from fossil fuels.
The challenge seems difficult, but we must remind ourselves of the benefits if we succeed - cleaner air, less energy poverty, enhanced energy security, and a safer, habitable planet for our childrenWilliam Walsh, CEO SEAI
