How a system value approach can help Ireland meet its climate targets

We are in an age of climate action. More than 100 countries have committed to become net-zero economies in the next 30 years and I’m hopeful that we will see more big names on that list come COP26 in Glasgow this November.

As we are seeing with the COVID-19 pandemic, we can respond faster and achieve better results when we cooperate globally. We must build on this spirit of cooperation and apply it to the climate crisis. Private sector companies, academia and global institutions such as the World Economic Forum all have a role to play.

The System Value Framework developed by the World Economic Forum, Accenture (and almost 50 global electricity industry companies) is a good example of this collaborative approach. The framework is a practical tool that can be applied anywhere in the world, regardless of different contexts and starting points, to identify decarbonization solutions. The framework looks beyond the cost of decarbonization and quantifies the benefits that different measures will deliver to the societies where they are applied. This, in turn, enables decision makers to consider the value to the wider economy and society when they are developing climate action plans.

Reading the framework results from Europe, the US and China, I’m struck by the critical role electricity will play in decarbonizing the globe. The world will produce a massive amount of zero carbon electricity from wind and solar and this will displace fossil fuels in heating transport and industry. Of course, other solutions will be required to get to zero carbon, but they will only make sense after energy efficiency and electrification options have been exhausted. This framework reinforces this strategy as being the correct pathway for every nation.

I am delighted that ESB has been able to collaborate with Accenture to apply this framework to Ireland. We are at a seminal time in our climate action journey. Under the Government of Ireland’s Climate Action Plan, by 2030 a quarter of our building stock will be retrofitted and nearly half of domestic cars will be electric, and 70% of our electricity will come from renewable sources.

Legislation currently going through our national parliament will set a net-zero target for 2050, along with an ambitious 2030 target to reduce emissions by half in accordance with the UN gap report.

By applying the framework to Ireland, we can see the additional measures required in the coming decade.

The System Value Framework highlights a few key building blocks of the transition which we must get right.

Climate change, if unchecked, is a threat to humanity as we know it. Different parts of the world will bear the impacts of climate change in different ways. We must turn net-zero commitments into roadmaps and actions plans as quickly as possible. The System Value Framework is a good place to start.