2011 Eco-innovation in Ireland - Europa EU
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Eco-innovation in Ireland EIO Country Profile 2011
Eco-Innovation Observatory
The Eco-Innovation Observatory functions as a platform for the structured collection and
analysis of an extensive range of eco-innovation information, gathered from across the
European Union and key economic regions around the globe, providing a much-needed
integrated information source on eco-innovation for companies and innovation service
providers, as well as providing a solid decision-making basis for policy development.
The Observatory approaches eco-innovation as a persuasive phenomenon present in all
economic sectors and therefore relevant for all types of innovation, defining eco-innovation as:
“Eco-innovation is any innovation that reduces the use of natural resources and decreases the
release of harmful substances across the whole life-cycle”.
To find out more, visit www.eco-innovation.eu
Any views or opinions expressed in this report are solely those of the authors and do not necessarily
reflect the position of the European Commission.
EIO Country Report: Ireland 2011 1
Eco-Innovation Observatory
Country Profile 2011: Ireland
Author
Hilary Murphy
Coordinator of the work package
Technopolis Group Belgium
Acknowledgments
This document has been prepared with kind support and help from:
Deiric Ó Broin and Andrew Moore, NorDubCo,
Lorraine O Donoghue EPA
Ronan Furlong The Green Way
Enterprise Ireland, Forfás, Ecocem, IBM, Veutility, Energy Direct
A note to Readers
Any views or opinions expressed in this report are solely those of the authors and do not necessarily
reflect the position of the European Commission. A number of companies are presented as illustrative
examples of eco-innovation in this report. Their inclusion in this report does not imply that EIO endorses
these companies and, it should also be noted that, the report is not an exhaustive source of information
on innovation at company level.
This brief is available for downloaded from www.eco-innovation.eu/Ireland
EIO Country Report: Ireland 2011 2
Table of contents
Summary .............................................................................................................................................................. 4
1 | Introduction ............................................................................................................................................... 5
2 | Eco-innovation performance ................................................................................................................... 6
3 | Established eco-innovation areas and markets ................................................................................... 10
4 | New trends and emerging eco-innovation markets ............................................................................. 15
5 | Public policy in support of eco-innovation .......................................................................................... 18
6 | Main findings ........................................................................................................................................... 21
6.1 Strengths and weaknesses of eco-innovation in Ireland ........................................................................... 22
6.2 Opportunities and threats to eco-innovation in Ireland ............................................................................. 22
References ......................................................................................................................................................... 23
Annex 1. Policy measures addressing eco-innovations in Ireland .............................................................. 25
EIO Country Report: Ireland 2011 3Summary
An energy inefficient building stock, fossil fuel-based electricity generation and a culture of car
dependency are the principle challenges facing Ireland in 2011. These challenges have not changed
significantly since 2010.
Ireland was ranked 9th on the Eco-Innovation Scoreboard for 2010 and 8th for 2011. For both years the
highest scoring area has been that of eco-innovation inputs. For 2011 Ireland’s performance regarding
eco-innovation inputs is 53% higher than that of the EU27 average (largely attributed to Government
spending in areas of energy and environment) while the area of socio-economic outcomes remains
weak at 74% below the EU27 average.
Ireland’s leading eco-innovation areas are renewable energies, energy efficiency technologies and
green building. Eco-innovation in these areas is largely driven by the need to address Ireland’s Green
House Gas (GHG) emissions and also the availability of renewable energy resources (marine and wind)
which have attracted significant investment. Emerging eco-innovation areas include smart technologies
particularly in the management of energy and water consumption.
The area of sustainable transport identified as an emerging area in the 2010 Country Profile continues to
progress as an eco-innovation area. An expanding commuter belt around Ireland’s urban centres has
driven awareness of the need to reduce carbon based transport patterns. The ‘Dublin Bikes’ bicycle
rental scheme is regarded to be the most successful in the world as regards user figures while grants
and tax incentives have been put in place to promote the uptake of electric vehicles.
Challenges to eco-innovation in Ireland in 2011 relate to the risk factor to innovators in an unstable
economic environment. However some evidence suggests that innovative Irish firms generally continue
to sustain investment during a downturn whereas firms with little or no experience of innovation are far
less likely to innovate. Other barriers to innovation include the financing of innovation activities and
funding cuts.
Eco-innovation is ill-defined within Irish policy documents. The Irish Government recognise that
maintaining investment in innovation is an important part of economic recovery and continuing national
support for research and development (R&D) testifies to this. However, traditionally Irish innovation
policies have concentrated on higher education instead of commercialisation opportunities e.g. high
profile start ups.
The most recent figures relating to eco-innovation in Ireland suggest the sector remains weak with just
0.34% of the Irish workforce employed within eco-industries (2008) while just 0.14% of total Irish exports
are related to eco-innovation.
EIO Country Report: Ireland 2011 41 | Introduction
As one of the most globalised countries in the world (Ernst & Young, 2010) Ireland is particularly
sensitive to the global financial environment and international market conditions. Following an economic
collapse in 2008, Ireland has been struggling to regenerate the national economy, create jobs and
reduce debt. The Irish population continues to grow at a current rate of 1.6%, with the population
standing at 4,581,269 in 2010 (CSO, 2011).
Ireland’s economy is knowledge based and the country has an established reputation as an industry
leader in information communication technology (ICT) and biomedical science. A low corporation tax
rate and a highly skilled employment base have facilitated many large global high tech industries to
locate themselves within the country. Nine of the top ten global pharmaceutical and medical technology
companies are located in Ireland while the ICT sector accounts for €50bn in Irish exports. The value of
Irish exports stands at €7767m (August 2011) and continues to experience growth (CSO, 2011). Ireland
is placed in the top 20 exporting countries in the world with agricultural exports (including agri-food and
drink) accounting for 46% of Gross Domestic Product (GDP) (Trading Economics, 2011). The three
main sectors of Irish exports are agri-food/drink, ICT and pharmaceutical.
Although rich in certain natural resources including natural gas, peat, copper, lead, dolomite, limestone,
timber and zinc, a commitment by Government to sell a stake of national assets worth up to €2bn as part
of an EU, International Monetary Fund (IMF) agreement could potentially see stakes of these resources
controlled by private purchasers. Other assets which may be affected by this potential sale include
holdings in the Electricity Supply Board (ESB), Bórd Gais (Gas Board), Eirgrid (National Electrical Grid),
Bórd na Mona (peat) and Coillte (forestry). Consequences of this for eco-innovation lie in the future
capacity of the state to continue investment in research and development within these areas and also to
manage and measure resources as the state see fit.
Environmental and economic challenges to eco-innovation in Ireland are rooted in a Government
tendency to place green policies and initiatives in competition with measures for economic recovery.
This is particularly apparent in terms of political commitment to action on climate change and
environmental protection in a time of austerity.
Although GHG emissions have somewhat decreased in recent years, due in large to the economic
downturn, Ireland’s emissions per capita remains one the highest worldwide. Agriculture and transport
remain the highest emitting sectors of GHGs in the Irish economy. The innovation opportunities in
addressing emissions in these sectors have been identified by policy advisory groups but there remain
barriers to fully exploiting eco-innovation in these areas. Gaps in policy and legislation hinder eco-
innovation prospects by failing to provide a strong legislative context for eco-innovation to take place.
An example of this can be seen in a recent decision by the Government not to postpone the drafting of
climate change legislation despite GHG targets.
Existing waste management policy and an urgent need to better manage water resources and water
services provide other areas with potential for eco-innovation activities. Supplying drinking water to
urban areas has become increasingly under threat due to an inefficient water management system while
problems of water contamination in rural areas are on the increase. Water scarcity and contaminated
reservoirs are contributed to by factors such as an increase in extreme weather events, urbanisation and
ground water pollution through poor development control in rural areas.
Ireland’s greatest asset in terms of eco-innovation is a highly skilled and youthful workforce. The
Government policy advisory board Forfás have identified several key areas for green job creation
including renewable energies, smart cities, smart grid and building retrofitting (Forfás, 2010).
EIO Country Report: Ireland 2011 52 | Eco-innovation performance
The following analysis is based on the EU27 Eco-innovation scoreboard (Eco-IS) for 2011. The
scoreboard displays the eco-innovation ranking of each of the EU27 individually and compared to the
EU average. The Eco-IS indicates the performance of a country based on eco-innovation using 16
indicators aggregated into five components: eco-innovation inputs, eco-innovation activities, eco-
innovation outputs, environmental outcomes and socio-economic outputs.
Figure 2.1 EU27 Eco-innovation scoreboard 2011, composite index
Source EIO 2011
Ireland’s is ranked 8th in the EU27 with an overall eco-innovation score of 118.22, 15% higher than the
EU27 average of 100. Ireland’s position on the index has therefore not moved significantly from last year
although the difference between Ireland and the top scorer has narrowed from 55 points to 30 points.
Figure 2 below gives a more detailed indication of Ireland’s score for the five different components of the
Eco-IS. As can be seen, while Ireland scores strongly in terms of eco-innovation inputs and outputs, it
scores below the EU27 average for environmental outcomes and well below the average for socio-
economic outcomes. The score for eco-innovation activities is representative of the EU27 average. In
some regards this marks an improvement on 2010 figures where Ireland scored below the EU27
average in three out of the five components.
EIO Country Report: Ireland 2011 6Figure 2.2 Components of the eco-innovation composite index for Denmark, 2011
Source EIO 2011
Eco-Innovation Input
As regards eco-innovation inputs as measured by Government R&D expenditure in environmental and
energy sectors, R&D personnel and cleantech investment, Ireland scores 210.94. This is 4% lower than
the 2010 score of 218.72 but 53% percent above the EU27 average.
In relation to government budget appropriations or outlays on R&D (GBAORD), estimates from 2010
indicate the energy field receives €40.1m while the area of environment receives €16.6m. This
corresponds to about 7% out of a total Government spend of €872m on R&D activities. The main
government agencies funding R&D activities in the eco-innovation field include the Environmental
Protection Agency (1.5%) the Department of Communications, Energy and Natural Resources (1.8%)
and the Sustainable Energy Authority of Ireland (SEAI) (3.2%). From 2004–09, eco-innovation relevant
GBAORD have been increasing to reach 0.03% of GDP, putting Ireland below the EU average of 0.04%.
Despite budgetary and funding cuts, estimated figures for 2010 concerning R&D personnel show a fall of
just 3% for PhD researchers, 5% for researchers without a PhD and an expected decrease of 9% for
technicians. Figures are not yet available for the 2011-2012 period. However, in September 2010, the
Irish Government announced spending plans amounting to €2.4bn to support science, technology and
innovation over the next six years as a boost to job creation. Despite a rising trend of business
expenditure in R&D (BERD) in recent years, estimates also indicate a decline in overall BERD after the
2009/2010 period, largely driven by an expected fall in foreign owned enterprises’ R&D expenditure.
The latest available data shows that 0.34% of the workforce is currently employed in the eco-industry
sector, one of the lowest rates in the EU and far behind leaders for this indicator such as Bulgaria with
7.11%.
EIO Country Report: Ireland 2011 7Eco-innovation activities
In relation to eco-innovation activities, the 2011 Irish score is 108.92, ranking slightly above the EU
average of 100. This is an improvement of 43% on the 2010 figures when Ireland ranked as one of the
worst performers within the EU27 in terms of eco-innovation activities with a score of 61.6. The measure
of activities is reflective of companies holding an ISO 14001 award and business activities which bring
innovation to areas of material efficiency and energy saving.
Ireland’s ECO-IS score of 527 regarding ISO certificates reflects the number of certificates held by
businesses within the country. After a short period of decline ISO certifications have been increasing
steadily from 2007–2009. However, Ireland continues to lag behind other countries of a similar
population such as Denmark which holds 873 certificates and Finland with 991.
The latest Community Innovation Survey (CIS, 2008) showed that almost 28% of all enterprises were
engaged in product innovation while 35% were engaged with process innovation. The figures also show
11% of total turnover within the industrial and service sectors could be correlated to product innovation.
The survey demonstrated that of the enterprises which were ‘innovation active’, almost 25% were
engaged in innovation collaboration with others.
EIO data for 2008 ranks Ireland forth in the EU as regards companies which have undertaken actions to
reduce environmental impacts. While the 2008 data indicates 50.9% of Irish companies had undertaken
such actions as environmental audits, performance goals, ISO 14001 certificates etc, an EU conducted
study showed 46% of companies in Ireland had introduced at least one eco-innovation over the 2010-
2011 timeframe (EU,2011).
According to the latest available EIO data (2008) the percentage of Irish firms with innovation leading to
increased recycling of water, waste or minerals is at 30.71% ranking third behind Germany and Portugal.
Data from the same year also indicates 18.73% of Irish companies have adopted innovations to reduce
Co2 emissions ranking second behind Germany.
Eco-Innovation Output
The indicators of eco-innovation output include eco-innovation related patents, publications and media
coverage. Ireland’s score of 158.87 for 2011 is 78% higher than the 2010 score of 34.84 and 37%
higher than the EU27 average of 100. The 2011 index has been somewhat modified on previous years
which should also be taken into account when considering the substantial difference in scores.
Data from 2006 indicates that patent applications in Ireland in general were approx 375 per million
inhabitants, rating well below the EU average in the region of 500 (Eurostat).
According to the Innovation Union Scoreboard (IUS) 2010 Ireland scores 336 for international scientific
co-publications against the EU average of 100, the data shows an annual growth of approx 11%. The
number of Irish patent applications to the European Patent Office per million inhabitants however
receives a score of just 66, well below the EU average of 100 with an annual growth rate of 4.2%
Environmental Outcomes
The indicators measuring environmental outcomes take into account domestic material productivity,
domestic water productivity, inland energy productivity and GHG emissions intensity.
Ireland’s score for 2011 is 86.28, down 5% from the previous year at 90.65 and 14% below the EU
average of 100.
The latest EIO figures for material productivity score 0.70 for Ireland. This represents the amount of
economic value generated per unit of material consumption within the country. Irelands score ranks
EIO Country Report: Ireland 2011 8fourth from the bottom and well below the EU27 average of 1.51 indicating a particularly low economic
value per material consumption.
Ireland is 89.9% dependent on energy imports (2008) while energy productivity is measured at 8.97
(2009), the highest in the EU27 after Malta. Irelands GHG emissions intensity is measured at 0.47
ranking 7th out of the biggest emitters. While it is believed that Ireland may reach energy targets
assigned by the Kyoto agreement, the EU set targets for 2020 would appear to be unattainable
considering poor progress made.
Ireland has not yet supplied data to provide for measurements of water productivity.
Socio-economic outcomes
Exports, employment and turnover of eco-industries factor in the measurement of Socio-Economic
Outcomes. Ireland scores just 26.08 against the EU average of 100 down 31% from the 2010 score of
38.04.
As a percent of total exports, eco-industry exports make up Just 0.19% comparative to leading eco-
export countries such as Luxemburg with 2.02% and the Netherlands with 1.83%. The average for the
EU27 being 1.3%. Ireland’s position is slightly improved from a 2009 score of 0.16% although when
ranked comparatively against the other EU states Ireland has not changed significantly.
Just 0.34% (2008) of the total workforce is employed within the eco-industries sector. This can be
compared with countries of similar populations such as Finland and Denmark which score 1.89 and 1.75
respectively. The weakness of Ireland’s eco-industry sector is further reflected by the percentage share
of eco-industry turnover as a total of GDP. The latest EIO figures (2004) show just 0.75% of GDP can
be allocated to eco-industry. The highest scoring country for this area is Denmark with 5.33%.
EIO Country Report: Ireland 2011 93 | Established eco-innovation areas and
markets
Leading areas of eco-innovation in Ireland generally correlate with the availability of natural resources, a
strong knowledge economy and innovation drivers such as high energy consumption trends. The
harnessing of resources for renewable energy generation has attracted significant innovation and
research particularly in areas of wind and wave energy. Ireland’s prevailing westerly winds provide a
high potential for wind energy generation particularly along the west coast while the seas along west and
north coast’s possesses ideal test-bed characteristics for wave energy technologies.
The production and design of eco-building materials and building retrofit appliances is also becoming a
lead area of eco-innovation activity. Upgrading the existing building stock to a greater level of energy
efficiency has prompted research and development into alternative building materials as well as
advancing the performance of traditional building materials. Related to this, the area of monitoring
resource consumption such as water and energy at domestic and commercial levels is rapidly
developing as an eco-innovation industry and is supported by the strong information technology industry
presence in Ireland. Other growth areas of eco-innovation include smart city technologies, sustainable
transport solutions and promoting energy efficient neighbourhoods.
Eco-innovation markets
Relevant information regarding Irish eco-innovation markets is limited in supply. An indication of
markets can be derived from eco-industry growth areas as studied by Forfás in assessing future skills
needs (Forfás, 2010). This study estimates the market size of the environmental goods and services
sector in Ireland to be in the region of €3.04bn with high growth potential in the export markets of eco-
construction products, energy efficiency, renewable energies, green ICT and environmental consultancy
services. The export value of indigenous cleantech companies has been estimated by Forfás to have
been approximately €370m in 2009.
EIO data for 2008 shows just 0.34% of the total Irish workforce to be employed within eco-industries, the
lowest of the EU27. EIO data from 2010 concerning the share of eco-industry exports show just 0.19%
of total exports were from eco-industries for that year. EIO 2004 data shows a poor performance of just
0.75% in terms of eco-industry turnover as a percentage of GDP.
Ireland holds potential to develop a strong market presence in smart city technologies. The IBM Smarter
Cities Technology Centre opened in Dublin in 2010 and has been collaborating with city authorities,
universities and business in an effort to research, develop and commercialise new sustainable city
technologies. Using Dublin City as a test-bed, objectives of the IBM Smarter Cities centre include
development of smart solutions to transport and mobility, sustainable energy and resource management.
Public sector and university partners in the Dublin region have recently collaborated to launch a new
data sharing initiative known as ‘Dublinked’. The initiative which aims to make public sector data
available to businesses, technologists, app developers, researchers and entrepreneurs creates stimulus
for potential innovation and removes access barriers to certain evidence based research. Data
accessible through an online facility includes pollution, weather and energy monitoring data, regional
planning information and infrastructure mapping. The IBM Smarter Cities Technology Centre are
presently collaborating with the Dublinked project and have provided a platform of open collaboration
based technologies and research tools to support the initiative. Given existing strengths of Irish eco-
innovation in areas of monitoring and managing, the availability of public sector data to researchers
creates potential to strengthen market areas of resource management technologies.
EIO Country Report: Ireland 2011 10Developing a market around low carbon economy activities will require the removal of existing barriers
and policy failures inherent in the Irish climate change policy area. Emissions targets and the rising cost
of fossil fuel based energy provide incentive to businesses to factor renewable energy solutions into their
practices. Eco-innovation potential in this emerging market area is hampered by insufficient policy
direction.
Renewable Energies
Ireland’s energy targets include 16% energy consumption to come from renewable sources by 2020.
This requires for approx 40% of electricity production to be generated by renewable sources and 10% in
the transport sector. Key areas of innovation within this market as identified by Forfás (2010) include
areas of installation, servicing/maintenance of renewable energy technologies, grid connection upgrades
and smart network technologies to include smart metering, electric vehicles etc.
At present about 12% of our electricity production comes from renewable sources (CER All Island Fuel
Mix, 2010) with about 9.7% of this allocated to wind energy. Harnessing wind energy is broadly
accepted as essential in reducing dependency on fossil fuels for electricity production. At present there
are about 146 wind farms operational within the Republic of Ireland. This equates to about 1746.7
MegaWatts which generates 4,743,339 MegaWatt hours per year (IWEA).
Ireland requires substantial upgrading to the national grid before further wind farms can be connected.
The grid connection problem is compounded by the optimal wind resources lying along the west coast in
remote areas while the majority of Ireland’s inhabitants live on the east coast. Security of supply is also
an issue with reliable substitutes required during periods of low wind generation. Other issues
concerning wind farms in Ireland include the protection of scenic areas and special areas of
conservation (SACs). Much of Ireland’s peat bogs are designated as SACs or candidate SACs. This
designation omits any development which might adversely impact upon the resource. However, there
are also many undesignated peat-lands which are ultimately prioritised for wind farm development as
they are typically in western regions of the country on higher ground. Although these sites are
geographically suitable for harnessing wind energy, they are often an unsuitable terrain to accommodate
large infrastructure. There is much opposition nationally to the development of wind-farms on peat lands
for reasons of upsetting the delicate balance of the water table and causing other environmental
damage. Such opposition has focused attention towards innovative solutions to harness wind energy
while protecting Ireland’s ecologically sensitive rural areas.
Generating renewable energy domestically in Ireland through wind, solar and other means has been
hindered by an inadequate grid network and feed in system. At present the connection system and feed
in requirements do not promote generation of energy domestically or make it financially attractive to do
so. In 2007 the Government produced a White Paper on energy entitled ‘Delivering a Sustainable
Energy Future for Ireland’. This paper outlines actions as part of a strategy to realise a secure and
sustainable energy future for Ireland with a timeframe to 2020. Priorities for Government within the
paper include security of supply, sustainability and economically efficient prices.
EIO Country Report: Ireland 2011 11Supplying discounted wind energy
Energy Wind Direct are an Irish company which were
established in 2006. Focussing in the area of on site
wind energy generation, their clients are generally
owners of industrial sites. Wind Energy Direct install
and operate wind turbines while selling the electricity
generated to their customers at a discounted rate
compared to the retail rate. In doing so they provide
green energy to their customers while also providing
a degree of energy security as regards energy price
inflation. Wind Energy Direct finance the project
entirely eliminating financial risk for the client with no maintenance or outlay costs. Based in Co.
Limerick, the company install wind turbines on large industrial and campus sites nationally. Recently
launched projects by Wind Energy Direct include the installation of two 2MW wind turbines on the
Munster Joinery Industrial site at Ballydesmond Co. Cork. This project was the first of its kind in the
country and was said to 'mark the beginning of auto production for large energy users'. This project is
set to provide energy cost savings in excess of €1 million over the next five years for the site while
providing a significant portion of the company’s energy needs. Total carbon savings are believed to be
in excess of 6,000 tonnes per annum.
Targeting the business sector in this way, Wind Energy Direct aim to deliver benefits such as reduced
energy costs, reduced carbon emissions and break the link with energy inflation to companies which
are heavy consumers of electricity. Adoption of a business model whereby electricity prices are agreed
prior to installation allows customers to lock in their energy costs at current levels for 5, 10 or 15 years.
Carbon savings are calculated using a rule of thumb whereby every 1MW of installed wind generation
capacity saves on average 1,550 tonnes of Co2 emissions. Wind Energy Direct uses the attractiveness
of a 'turn key' solution to energy problems as a selling point, by providing a full service to include all
aspects of the turbine installation, operation, finance and planning.
Munster Joinery site and turbines.
Picture Source: http://www.windenergydirect.ie/projects/case-study/
Source and further information on: http://www.windenergydirect.ie/
http://www.iwea.com/index.cfm/page/industryreports;
http://www.dcenr.gov.ie/NR/rdonlyres/54C78A1E-4E96-4E28-A77A-
3226220DF2FC/30374/EnergyWhitePaper12March2007.pdf
Eco-Construction for Energy Efficiency
Achieving a 20% reduction in energy demand by 2020 also requires large scale retrofitting of inefficient
building stock. A national retrofitting programme entitled ‘Better Energy’ was introduced by Government
in 2011 as part of a national jobs initiative and was supported by an investment of €90m, including an
additional €30m allocated in May 2011. The Plan remains active until 2016 with innovation opportunities
in areas of developing skills for export market opportunities, energy management, energy engineering,
eco-design, home energy consulting and green construction.
EIO Country Report: Ireland 2011 12Irish building regulations were amended in late 2007 to introduce better standards of energy efficiency
within buildings. The standards were adopted towards the end of the building boom leaving many living
in newly built homes with poor energy efficiency ratings.
Government grants and subsides for retrofitting homes to become lower consumers of energy were
introduced through the Sustainable Energy Association of Ireland. These grants are to be phased out by
2014 but are likely to be replaced by other incentives for reduced domestic energy consumption.
The collapse of the property bubble in 2007/2008 resulted in significant unemployment across the
construction sector. The re-skilling of construction and building industry workers to acquire ‘green’ skills
has been the focus of several job creation initiatives. Government run Further Education and Training
Awards Council (FETAC) accredited courses have been made available to jobseekers.
A general increase in awareness of energy efficiency in homes, businesses and buildings has driven
eco-innovation in building material design. Similarly sustainably sourced construction materials such as
timber, copper and cement is becoming increasingly specified in tendering processes and suppliers and
manufacturers have been responding.
Eco Cement
Ecocem Ireland are producers of a low carbon cement
alternative known as GGBS (Ground Granulated
Blastfurnace Slag). The Irish company which was first
set up in 2001 with a business focus on mainland Europe
opened its first Irish facility in 2003. This facility can
produce approx 350,000 tonnes of GGBS cement.
As operators of the first purpose built GGBS grinding
plant in Ireland, Ecocem target the reduction of CO2
emissions in the construction sector. Ecocem equate
that if their product had been used during the recent Irish
building boom over 2,000,000 tonnes of CO2 would have been saved. The production of ordinary
cement products in Ireland is believed to be the second largest source of CO2 emissions after
electricity generation.
Ecocem estimate that about 90% of environmental impacts associated with construction sites are
derived from cement. These include effects of greenhouse gas emissions, acidification, winter smog,
eutrophication and primary energy requirements. Producers believe using Ecocem as an alternative
can significantly reduce all of these impacts. The fundamental difference in the manufacture of
Ecocem's low carbon cement product involves the recycling of an industrial by-product called
blastfurnace slag which generates very low CO2 emissions comparably. The blastfurnace slag
material is generally shipped from the UK where it would otherwise be disposed as a waste product.
Ecocem refer to this as 'up-cycling' rather than recycling.
As opposed to the production of regular cement where approx 1.6 tonnes of clay, shale and limestone
are removed from the landscape for every tonne of cement manufactured, Ecocem has practically no
depletion of natural resources associated with manufacturing their product. Other benefits of this
include no contribution to damaging the physical landscape through quarrying, less associated traffic,
noise and dust.
Other benefits of the product include the technical load bearing and strength of the product and the
ability to mix the product to different specifications including the use of low carbon cement as a part
substitute in building projects. Ecocem also claim their cement product uses far less embodied energy
EIO Country Report: Ireland 2011 13than regular cement.
Mizen Head Footbridge made with 50% Ecocem product
Picture Source: http://www.ecocem.ie/index.php?p=gallery
Source: http://www.ecocem.ie/index.php?p=home;
http://www.lowcarbonconcrete.ie/suppliers_map.php
EIO Country Report: Ireland 2011 144 | New trends and emerging eco-innovation
markets
As the economic environment remains unfavourable to supporting enterprise in emerging innovation
areas, the market areas of energy efficiency and smart transport solutions continue to attract attention.
The upgrading of water infrastructure to meet the requirements of the EU Urban Wastewater Treatment
Directive will see €3.4bn invested in upgrade and expansion of water services works over the next five
years. Sustainable development has been identified as a priority with a focus on minimising the amount
of treated potable water lost though leakages. Prospects for innovation in this area include water
metering, sludge management and various mapping, management and protection of groundwater
resources requirements.
As in 2010 Green ICT also continues to prosper as a strong eco-innovation area. Research and
development of software solutions across various industry areas such as energy, smart buildings, smart
cities, monitoring, measuring and managing resources requires ICT supportive technologies. Forfás
(2011) have identified strong business growth prospects for Green ICT particularly in subsectors of
smart electricity networks, automated energy monitoring, energy and environmental management
software applications and intelligent utility approaches to water provision, waste water and water
management.
The recent establishment of IBM’s Smarter City Technology Centre in Dublin has brought attention to
the potential of eco-innovation within the ICT field, particularly in areas of smart transport,
communication, water and energy. Ongoing collaboration with local authorities, businesses and
universities has helped define Dublin City as a test-bed for Smarter City innovation solutions.
Solutions for energy efficiency
Together with the commercialisation of innovative solutions for retrofitting the built stock such as building
insulation materials, ground water heating, Photo Voltaic (PV) panels and passive house technologies,
there is an increasing market in supporting technologies which ‘measuring and monitoring’ energy and
resource consumption. This is evident both within business that endeavour to reduce their expenses
and energy consumption and also domestically particularly as household domestic energy bills increase.
The concept of ‘smart metering’ as an appliance in the context of smart cities and smart homes is an
action which has a proven direct effect in reducing energy consumption.
Veutility Smart Meter
This product is a smart energy meter which has been developed by a research company based at
University College Dublin. The product goes beyond simply measuring the energy usage of select
appliances as most other energy consumption meters do, but is designed as a single interface to
calculate consumption for each appliance that uses electricity. This product which was developed
earlier this year calculates an 'appliance DNA' or a type of energy signature to track the energy
consumption for different appliances.
The information is communicated through an internet based interface and measures the consumption
of many appliances by using an algorithm based technology. This brings many benefits such as the
convenience of just one meter being required for each business or building and is compatible with
other already commercialised smart meters. Allowing the user to compare energy consumption
between appliances and also between buildings and companies improves the capacity to measure and
EIO Country Report: Ireland 2011 15manage consumption. The data which can be produced by the product may also be able to be used in
making recommendations of energy efficient equipment in the future.
Source and further information: http://www.veutility.com/#
http://www.ucd.ie/news/2010/11NOV10/191110-Making-smart-metres-smarter-UCD-campus-company-
Veutility-wins-Globe-Forum-Innovators-Challenge.html
http://www.irishtimes.com/newspaper/innovation/2011/0128/1224288137071.html
http://www.innovationalliance.ie/newsevents/news/2010/11NOV/221110-Innovation-Alliance-campus-
company-Veutility-wins-Globe-Forum-Innovators-Challenge.html
Marine Energy
Ireland has sourced considerable funding for R&D in the areas of marine energy. Financial support
includes a €2m grant through the Ocean Energy Prototype Fund and €1m for the National Ocean
Energy facility in University College Cork. These funds have been accessed through the umbrella of the
Ocean Energy Development Unit.
Research and development in the potential of Ireland’s wave energy industry continues with
infrastructure being expanded at the €11.5m Maritime Energy Research cluster at Ringaskiddy in Co.
Cork. Plans are also underway through collaboration with the ESB and a UK company MCT to develop
tidal power farms off the Antrim coast. At present, three of the major wave and tidal energy companies
to be receiving Government support include Wavebob, OpenHydro and OceanEnergy.
As exploration and testing of Ireland’s capacity to sustainably generate renewable wave and tidal energy
continues, so does research to ensure the progression of marine energy development works does not
harm the sensitive maritime environment. Ireland is widely regarded as an excellent location for wave
energy technology testing. There is also a responsibility therefore to ensure emerging technologies
adopt principles of environmental protection and are developed as a sustainable and safe solution to
energy requirements. IBM and the SEAI have recently begun collaborating on research to better
understand the environmental impacts of wave energy electricity generation. This has required the
development of new underwater monitoring technologies, the first of their kind to be implemented.
IBM wave energy noise monitoring - Underwater Noise Monitoring Device
As progress is made in researching and
harnessing the untapped renewable energy
available in the seas around Ireland the issue
of environmental impact has become an
increasing concern. There is as of yet no
data collection method or technologies in
place for measuring the noise levels of wave
energy collection devices or their impact on
marine eco-systems. A collaboration based
in Galway bay which involves technology
giant IBM and the Sustainable Energy Authority of Ireland (SEAI) aims to test and advance
technologies that facilitate an environmental impact assessment of wave energy infrastructure.
Despite the existence of EU underwater noise limits as established by marine environmental policy
there are no global standards in relation to noise impact from wave energy infrastructure. The system
being tested by IBM in collaboration with SEAI consists of sensing platforms, communications
EIO Country Report: Ireland 2011 16infrastructure and stream analytics based on cloud computing. A test site in Galway Bay has been
developed to monitor the wave conditions alongside the noise, marine eco-system and pollution levels
within the bay. Similarly another test site is being developed off the coast of County Mayo.
Once the system becomes fully functional, it is believed that it will produce one of the largest data
sources of underwater acoustic information ever compiled. The data which will be available to marine
researchers and participatory agencies will significantly advance the understanding of underwater
sound and the associated environmental impacts. This data will likely go on to inform policy and the
drafting of standards applicable to renewable energy industries, shipping, off shore oil and gas works
etc.
Wave energy noise monitoring
Picture source: http://www-03.ibm.com/press/us/en/pressrelease/35814.wss
Source and further information: http://www-03.ibm.com/press/ie/en/pressrelease/35827.wss
http://hmrc.ucc.ie/publications/GD/Non%20technical%20barriers%20to%20wave%20energy.pdf
http://www.fastcompany.com/1791003/ibm-examines-impact-of-wave-energy-devices-on-ocean-
acoustics
EIO Country Report: Ireland 2011 175 | Public policy in support of eco-innovation
Public policy supporting eco-innovation in Ireland is strongest in the areas of science, the smart
economy and financial support relating to development and uptake of energy efficiency measures and
renewable energy generation. Budgetary constraints since 2008 have impacted on the availability of
R&D funds sourced through public agencies including the Department of the Environment and the
Department of Enterprise Trade and Innovation. The Irish Government has shown commitment to
developing eco-innovation technologies in Ireland for both economic and environmental reasons. An
example of this can be seen through the broadening of the remit of the Science Foundation Ireland to
include sustainable energy and energy efficient technologies. In this way funding can be accessed for
research and development in these areas. In 2010 the Government committed €660m to sustainable
energy programmes, water services investment and retrofitting the public housing stock. The National
Retrofitting Programme ‘Better Energy’ was launched as a supporting measure of national job creation
initiatives and the Government pledged a further €30m in funding earlier this year.
The Department of Enterprise Trade and Employment produced the policy document ‘Innovation in
Ireland’ in 2008 which identified key areas of opportunity where innovation could be exploited.
Environmental innovation was identified as a growing area and was defined within the document as “the
development of products and processes that contribute to sustainable development”.
The principle policy documents which relate directly to eco-innovation include the 2006 – 2013 Strategy
for Science, Technology and Innovation which recognises the importance of investment in eco-
innovation in order to progressing economically and socially. The document identifies the position of
Ireland as a knowledge economy in setting out the strategy and outlines investment targets of €2.7bn to
be spent in research before 2009. This policy document strongly portrays the political recognition within
the country of the importance of innovation to Ireland’s future. It was supported by other measures such
as the Centres for Science Engineering and Technology (2010) grant programme. This programme
aimed to create academic networks and partnerships with a view to tackling crucial research questions.
The grant system was envisaged to assist Ireland in domestically developing technology companies and
attracting new industries.
Ireland is one of the highest per capita GHG emitters in the EU and the highest user of resources per
capita. There is as of yet no dedicated policy or strategy aimed at improving resource efficiency
nationally. Themes of resource efficiency are included in policy documents such as Sustainable
Development, A Strategy for Ireland (1997) which sets out an ambitious strategy for Ireland in moving
forward. Similarly there has been a long standing absence of dedicated policy to adopt green public
procurement objectives. An Action Plan on ‘Green Tendering’ has been produced in early 2012 which
outlines an implementation process for achieving green procurement objectives. The absence of policy
in these areas throughout 2011 represents the Government’s weakness in supporting eco-innovation by
means of a policy framework.
The area of sustainable waste management has been adopted through policy from the Waste
Framework Directive (2008/98/EC). A Waste Prevention Plan 2009 – 2012 has been developed which
relates directly to waste reduction and recycling practices. A Climate Change Strategy was produced in
2007 which outlines the commitment of Government to tackling climate change. The document outlines
an action based approach to meeting Kyoto Protocol targets assigned to Ireland. Supporting this is the
policy framework document ‘Delivering a Sustainable Energy Future for Ireland – the energy policy
framework for 2007 2008’. The objectives set out within this framework direct Ireland’s energy
generation and consumption patterns towards ensuring security of supply, competitiveness and
environmental sustainability. A review of national climate change policy was undertaken by Government
EIO Country Report: Ireland 2011 18in November 2011. This review acknowledges the likelihood of more ambitious targets in coming years
being adopted through EU policy development and the requirement for deep emission cuts by Ireland in
meeting 2020 targets and beyond. The potential of Ireland to engage with and contribute to an
emerging green global economy is given regard throughout the review and is identified as a priority of
Government in progressing the national climate change agenda.
Other Government policies and strategies which directly relate to eco-innovation include the Green
Business Initiative (2008) which is aimed at helping enterprises save money and reduce their
environmental impacts. Similarly the Cleaner Greener Production Programme (2001) provides
assistance to companies to increase their overall efficiency while reducing environmental impacts.
Figure 5.1 Policy measures addressing eco-innovations in Ireland
Focus of policy measures (tick if applies)
Other
Group of policy Generic Resource Energy Reduction
Type of policy measure relevant
measures focus on efficiency efficiency of
areas (e.g.
eco- improve improve emissions
renewable
innovation ment ment incl. CO2
energy, etc)
Equity/business Venture capital funds X X
support Public guarantee funds X
Support for R&D in R&D funding X X
public sector and Collaborative grants X
industry R&D infrastructure X
Tax incentives for R&D and start-ups X
Fiscal measures
SUPPLY SIDE FOCUS
Tax incentives for R&D personnel X
Tailored training courses for companies,
X X
entrepreneurs
Education, training Advice/consulting for start ups,
X X
and mobility companies, entrepreneurs
Placement schemes for students X
Support for R&D workers recruitments X
Competence centres, clusters, science-
X
technology parks
Technology platforms and innovation
Networks and X X X X X
networks
partnerships
Foresight and common vision building X X
Market intelligence and other forms of
X
information sharing
Regulations, targets, cap & trade schemes X X X X
Regulations and
Performance standards, labelling,
standards X X X
certification
“Green“ public procurement of goods and
X X
services
Public procurement
R&D procurement
DEMAND SIDE FOCUS
Pre-commercial procurement
Advisory support for technology adopters X
Technology Financial or fiscal support for technology
Transfer adopters (e.g. grants for purchasing new X X
technology)
Tax incentives for consumers (e.g. for
X X
purchasing eco-innovative products)
Tax reductions for products and services
Support of private (e.g. VAT reductions)
demand Demand subsidies (e.g. eco-vouchers,
consumer subsidies)
Awareness raising and information
X X X
provision
The National Development Plan 2007 – 2013 mentions eco-innovation specifically in relation to the
Science, Technology and Innovation Programme. A policy measure of cleaner production supports
specific research projects in eco-innovation and environmental technologies as directed by the Plan.
EIO Country Report: Ireland 2011 19In Ireland, policies related to eco-innovation would be most closely aligned with the EIO description of
policies which support eco-innovation resulting in greater resource and energy efficiency in production
processes. There is a realisation that eco-innovation can have both economic and environmental
benefits.
EIO Country Report: Ireland 2011 206 | Main findings
Ireland has a unique and varied set of strengths on which to capitalise in order to develop the eco-
innovation sector to a greater extent. There are also many challenges and barriers which need to be
swiftly addressed to promote eco-innovation activities. Despite use of the term eco-innovation in
numerous Irish policy documents and in various proposed actions at a national level, eco-innovation
remains undefined and therefore open to differing interpretations. Often coupled with green technology,
proposed supportive measures relating to eco-innovation are often ad-hoc. This approach has lead to a
general mismanagement of eco-innovation activities and hindered intelligent investment and potential
growth within the sector.
This weakness of understanding has manifested itself in a lack of supports to bridge gaps between eco-
innovation and market testing. This is further apparent through the absence of state assistance to
facilitate the patenting and commercialisation of innovation solutions. At present Enterprise Ireland assist
high level commercialisation of innovation, generally where the majority of the potential market lies
overseas, there are no technical laboratories within the country available for development of smaller
scale eco-innovation ideas.
Recent Government investment trends and indications for the coming year would suggest science,
technology and innovation will continue to receive some degree of financing. Access to venture capital
however is likely to become increasingly difficult due in large to the economic downturn. Other areas
which may impact upon eco-innovation activity into the future include the effects of continuing emigration
of new graduates and skilled workers. This loss of human capital is a major factor in promoting eco-
innovation into the future. Unemployment in Ireland at present is at about 14%.
Despite the infrastructural, policy and economic challenges facing eco-innovation there are also many
opportunities. An established science and technology presence and a collaborative culture amongst
universities, state agencies and businesses create a favourable environment for eco-innovation ideas to
be developed. A strong research and development focus within the science and technology fields
continues to attract investment and Government recognition of drivers to eco-innovation has ensured
much funding to date has remained in place.
The drafting of climate change legislation, a strong green public procurement policy and specific policy
relating to eco-innovation would considerably improve the prospects for eco-innovators in Ireland. On
the 18th of January 2012 the Government launched ‘Green Tenders’ an action plan on green public
procurement in Ireland. The Plan is designed as a tool towards greening the economy. Although this
Plan is in its infancy it represents a growing commitment by Government in moving markets towards
more eco-efficient products and services.
Innovation, research and development are recognised within the draft Framework for Sustainable
Development as produced by the Government for consultation in 2011. In relation to innovation this
document draws attention to the importance of aligning ongoing research in areas of climate change,
water and resource efficiency with future commercial opportunities. The Green Economy initiative and
the EPA’s Science, Technology, Research and Innovation for the Environment (STRIVE) funding
programme were identified as foundations for developing new innovative solutions and processes. The
draft Framework for Sustainable Development public consultation period closes in February 2012 with a
final document expected in 2012.
EIO Country Report: Ireland 2011 216.1 Strengths and weaknesses of eco-innovation in Ireland
Figure 6.1 Strengths and Weaknesses of Ireland in promotion of eco-innovations
Strengths Weaknesses
- Continuing Governmental support for innovation at - A lack of a clearly defined understanding of eco-
policy level and a commitment to building upon innovation consistent to all associated policy
existing strengths within the knowledge economy documents
- Continuing investment in science and technology - An absence of any dedicated policy aimed at
sectors despite budgetary constraints specifically at eco-innovation
- Strong supportive and consultative measures in - A generally weak eco-industry reflected both in
place particularly for export orientated entrepreneurs employment trends and eco-industry related exports
and start ups.
- A financially uncertain climate in terms of access to
- A high potential for renewable energy generation funding and venture capital. The weakness of the
particularly through wind and wave energy economy also heightens risk elements for
harnessing. entrepreneurs and hinders market potential.
- A highly globalised commercial environment which - A general lack of facilities and infrastructure to
offers opportunities for venture capital access and facilitate the commercialisation of products.
market connectivity.
- No national plan or commitment to the creation of
- A skilled and youthful workforce. cleantech clusters at a scale appropriate to attracting
investment and enhancing eco-innovation potential.
- A low corporation tax rate which attracts international
investors.
6.2 Opportunities and threats to eco-innovation in Ireland
Figure 6.2 Opportunities and Threats for eco-innovations in Ireland
Opportunities Threats
- Further promotion of the countries resources as a - Prevailing gaps in policy such as climate change
test-bed for renewable energy technologies. This legislation
has already occurred with wave technology with a
- National economic uncertainty
potential for similar research in tidal energy, biomass
etc. - Increasing emigration of skilled workforce due to
rising unemployment
- Good potential for the development of clusters and
competence centres around eco-innovation and - A traditional tendency to place sustainable
related industries through initiatives such as development related policy and initiatives in
‘greening’ the Irish Financial Services Centre, IBM competition with economic recovery at a political
Smarter Cities and data sharing projects. level.
- Future competition in attracting foreign investment
as other competitive and developed centres grow
(i.e. China, India, Brazil)
EIO Country Report: Ireland 2011 22References
Department of Enterprise, Trade and Employment, 2008, Innovation in Ireland
http://www.djei.ie/publications/science/innovationpolicystatement.pdf
Department of Enterprise, Trade and Employment, 2008, Knowledge and Enterprise Clusters in
Ireland http://www.djei.ie/TRADE/EUAFFAIRS/KNOWLEDGEANDENTERPRISECLUSTERS.PDF
Department of Environment, Community and Local Government, 2011, A Framework for
Sustainable Development for Ireland (Draft)
http://www.environ.ie/en/Publications/Environment/Miscellaneous/FileDownLoad,29081,en.pdf
Department of Environment, Community and Local Government, 2012, Green Tenders – An Action
Plan on Green Public Procurement
http://www.environ.ie/en/Environment/SustainableDevelopment/GreenPublicProcurement/PublicationsD
ocuments/FileDownLoad,29208,en.pdf
Department of Environment, Community and Local Government, 2011, Review of National Climate
Policy
http://www.environ.ie/en/Environment/Atmosphere/PublicationsDocuments/FileDownLoad,28328,en.pdf
Enrst & Young, 2010, Winning in a Polycentric World
http://www.ey.com/Publication/vwLUAssets/Winning_in_a_polycentric_world_en/$FILE/Globalization-
index-report.pdf
Enterprise Ireland, 2010, Seed and Venture Capital Programme – 2010 Report http://www.enterprise-
ireland.com/en/Publications/Reports-Published-Strategies/Seed-and-Venture-Capital-Report-2010.pdf
European Commission, 2011 Attitudes of European Entrepreneurs Toward Eco-Innovation
http://ec.europa.eu/public_opinion/flash/fl_315_sum_en.pdf
Environmental Protection Agency, 2009 Irelands Greenhouse Gas Emissions in 2009
http://www.epa.ie/downloads/pubs/air/airemissions/GHG_1990-2009_UNFCCC_FINAL_2011.pdf
Forfás, 2011 Analysis of Ireland’s Innovation Performance http://www.forfas.ie/media/forfas110323-
Analysis_of_Irelands_Innovation_Performance.pdf
Forfás, 2010 Future Skills Need of Enterprise within the Green Economy in Ireland
http://www.forfas.ie/media/egfsn101129-green_skills_report.pdf
Forfás, 2011, Irish businesses continue to invest in R&D despite recession
http://www.forfas.ie/newsevents/news/title,7778,en.php
Forfás, 2010 Research and Development Funding and Performance in the State Sector 2009 – 2010
http://www.forfas.ie/media/forfas110811-RD_funding_performance_2009-2010.pdf
Greenovate Europe, 2011, Eco‐innovation and national cluster policies in Europe - A Qualitative
Review
http://www.clusterobservatory.eu/system/modules/com.gridnine.opencms.modules.eco/providers/getpdf.j
sp?uid=fcc9f732-b34e-4a6f-b190-22dd791bf955
Inno-Metrics, 2011, Innovation Union Scoreboard 2010 -The Innovation Union's performance
scoreboard for Research and Innovation http://ec.europa.eu/research/innovation-union/pdf/iu-
scoreboard-2010_en.pdf
EIO Country Report: Ireland 2011 23You can also read
