Business groups have called for an “all-island” approach to energy security and climate challenges.
Ibec, and the Confederation of British Industry (CBI) Northern Ireland say a lack of coordination is hindering progress.
A jointly published report urges politicians across the island and the UK to embrace new opportunities for collaboration and policy alignment on energy and climate action.
With the recent restoration of a functioning Northern Ireland Executive, the report states that there is a “real opportunity” to deliver a new phase of energy cooperation across the island.
According to the report, the transition to net zero should be underpinned by a new phase in energy collaboration and investment in shared infrastructure, including a recommitment to the Single Electricity Market.
It states that the shift to net-zero offers a significant chance to enhance competitiveness, boost energy resilience, make energy more affordable, and generate sustainable jobs.
However, it adds that challenges such as regulatory uncertainty, planning delays, skills shortages, supply chain constraints, and emerging energy security risks are impeding progress toward climate goals.
“While both the UK and Ireland have set world-leading climate and renewable targets, targeting net zero greenhouse gas emissions by 2050, the importance of an all-island approach is a critical component,” said Fergal O’Brien, Executive Director of Lobbying and Influence at Ibec.
“The energy demands, emissions drivers, and barriers to decarbonisation are broadly shared across the two islands, and policymakers face the same difficulties with infrastructure delivery, energy affordability, public buy-in, skills shortages, carbon leakage, and technology readiness,” he added.
Mr O’Brien said an uncoordinated and disjointed approach could see policymakers working against each other, adding that this could result in unnecessary duplication of effort and investment, increased costs, mixed signals for consumers and investors, and missed opportunities for emission reduction.
Angela McGowan, Director of CBI Northern Ireland said policy uncertainty has been a defining feature of the Northern Ireland energy sector to date.
“With a new Executive in post, businesses now look forward to a period of energy policy predictability and strategic collaboration.
“Northern Ireland’s continued participation in the Single Electricity Market which has delivered proven benefits for consumers across the island is critical, but collaboration must now go beyond this.
“With a relatively small market, it will be in Northern Ireland’s economic interest to broaden that energy collaboration with both the Republic of Ireland and Great Britain,” she added.
