Decoupling Emissions from Economic Activity 2020

Greenhouse Gas Emissions, Economic Activity and Employment

Table 1.1 shows greenhouse gas emissions, gross value added at constant (2020) prices, and employment numbers for the Agriculture, Forestry and Fishing sector, the Industry sector, the Services sector and the Household sector in 2020.

The Agriculture, Forestry and Fishing sector accounted for 38% of emissions in 2020, 1% of gross value added, and 5% of employment. The Industry sector was responsible for 18% of emissions, 40% of gross value added and 19% of employment in 2020 while the Services sector accounted for 17% of emissions, 59% of gross valued added and 76% of employment. The share of emissions from the Services sector was low compared with the share of gross value added and employment. The remaining 27% of emissions in 2020 was from the Household sector. As Households are included in this release as consumers only and not as producers, there is no share of gross value added or employment for this sector. 

A more detailed breakdown by NACE sector (see Table 2.1 in the next chapter) was used to identify the highest-emitting NACE sectors in 2020. 

Demography Trends

The Climate Action Plan targets were set against a background of increasing population and longer life-expectancy. Ireland’s population increased by 35% from 1991 to 2016, while life expectancy increased by 5.5 years for females and by 7.3 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 over 6 million persons in 2051 (from 4.8 million in 2016).

Environment Taxes and Subsidies by Sector

The CSO publishes annual statistical releases on Environmental Subsidies and Similar Transfers, Environment Taxes, and Fossil Fuel Subsidies. These releases show the extent to which these fiscal instruments are being used to encourage behaviours that could reduce emissions, e.g. electric vehicle subsidies.

Figure 1.1 shows environment taxes paid per tonne of carbon dioxide equivalent, by sector, for 2010 to 2020. In 2020, households paid the highest level at just over €207 of environment taxes per tonne of carbon dioxide equivalent. The Services sector paid €202 per tonne of carbon dioxide equivalent in 2020, although this falls to €169 if emissions from international aviation are included. The Industry sector and the Agriculture sector paid €31 and €3 respectively in environment taxes per tonne of carbon dioxide equivalent in 2020.