Just Transition in Offaly: Addressing Economic Challenges

JUST TRANSITION in COUNTY OFFALY Stephane Duclot Director of Services, Offaly County Council 9th June 2022

Just Transition a priority The Republic of Ireland is facing a climate crisis described by the Taoiseach as the defining challenge of our time . The Climate Action and Low Carbon Development (Amendment) Act 2021 sets Ireland on the path to a 51% reduction in emissions by the end of this decade and to net-zero emissions no later than 2050. A Just Transition seeks to ensure that the substantial benefits of a green economy transition are shared widely, while also supporting those who stand to lose economically countries, regions, industries, communities, workers or individuals. The transition to a low-carbon economy creates challenges and opportunities.

Offaly the most negatively affected territory Those most negatively affected, based on the economic and social impacts resulting from the transition, in particular with regard to the expected adaptation of workers or job losses in fuel fossil production and use and the transformation needs of the production processes of industrial facilities with the highest greenhouse gas intensity . (Article 8 of the Regulation, EU Just Transition Fund) Offaly : has been the first County in Ireland to directly experience the negative impacts of the transition away from fossil fuels with the ending of the peat industry for power generation. has been recognized as the most negatively affected territory.

Offaly and the peat industry Bord na Mona: Irish semi-state company with operations in power generation, energy, waste management and new businesses. Main entity in Ireland for the commercial harvesting of peat power generation. ESB: Semi-state company which operates in areas including power generation and energy distribution. In the context of the peat industry, the ESB was the operator of peat-fired power plants. Peat industry and related power generation have been significant for Offaly economically, culturally and socially. Employment, housing for employees and support for local communities.

Offaly the most negatively affected territory The ending of the peat extraction and its consequences: Peat and electricity-related closure in Offaly, past and future: Peat fired stations at Ferbane, Rhode and Portarlington in the 1990 s. Mount Lucas briquette factory in 2020. Shannonbridge Power Station in 2020. Derrinlough briquette factory in the coming years. Edenderry Power Station transitioning out of peat. Cessation of all peat harvesting by Bord na Mona in 2021. Rapid transition was 7 to 10 years earlier than envisaged. Long-term economic impact on workers, their families and their communities. Loss of employment - 2,000 jobs direct and indirect. Loss of Commercial Rates for Offaly County Council: 1.7m. The exit from peat will also bring climate and biodiversity benefits.

Offalys response to the Transition Offaly rapidly respond to and put in place resources to manage a transition: In October 2018 a Transition Team was established by Offaly County Council to address the challenges and opportunities presented by the ending of the peat industry. The Team expanded into the Midlands Regional Transition Team (MRTT), with representation from Laois, Longford, Offaly, Westmeath, Roscommon, North Tipperary and Kildare Local Authorities as along with other regional stakeholders. National Just Transition Fund - 2020: 31m. Key pillar of the Irish Government for the Midlands region specific fund. To support communities transitioning to a low carbon economy. To retrain workers and generating employment in green enterprise. To facilitate projects that contribute to the economic, social and environmental sustainability. 56 Projects 16 Strand 1 projects (less than 100,000) and 40 Strand 2 projects (greater than 100,000 - less than 1 m). To be delivered by December 2023. Estimated jobs creation: 200 direct jobs and 1,000 indirect jobs. 2/3 of those projects will benefit directly and indirectly County Offaly.

Offalys response to the Transition EU Just Transition Fund - 84.5m New EU fund 2021-2027. Support territories facing serious socio-economic challenges deriving from the transition towards a climate-neutral economy. Support to actions listed as eligible in regulation focus on economic diversification and employment. Territorial Just Transition Plan: necessary document outlining transition challenges, eligible territory and types of actions to be supported. As demonstrated by EU research, Offaly has been the most impacted by decarbonisation across multiple economic and social criteria. Therefore Offaly deserves the greatest level of supports through the EU Just Transition Mechanism. Offaly Green Vision Statement: Space to Grow 1GW operational permitted or pipeline renewable energy. Space to innovate co-location of diverse renewable energy systems collaboration: Industry, Academia & Stakeholders. Space to Locate place to live, work, visit and invest. Space to Live quality of life.

Offalys response to the Transition Identification and Delivery of key projects: Rhode Green Hydrogen Demonstration Hub: Offaly County Council is to carry out infrastructure works to complete the Rhode Green Energy Park at the site of the former Rhode Power Station. Explore the integration of renewable energy and green hydrogen in the region with data centres. Major Cycling Destination in Offaly: increase number of domestic cycling and walking tourists. potential pause visitors on their way between Dublin and West coast. post peat Midlands, climate education & leadership with responsible tourists. Grand Canal Dock Development in Tullamore (with Waterways Ireland) masterplan stage Consideration of creating a scaled down version of Grand Canal Dock Dublin attracting Foreign Direct Investment and internationally trade jobs. To create an iconic development with mixed use development of business, commercial, residential, recreation, leisure and tourism. Unlock opportunity for urban regeneration and balanced regional development.

Offaly County Councils response to the Transition Lead its partners in the Just Transition and has strong established relationships with key stakeholders across the statutory, energy, business and community sectors. Foster a culture of innovation within an agile and pro-active County Council and its Local Enterprise Office. Offaly County Council Elected Members have actively engaged with our Members of the Irish National Parliament and Members of the European Parliament on the importance of the Just Transition to secure a sustainable future for Offaly. Lead by example on the Climate Change agenda. Develop an Economic Development Strategy 5 Year Plan. Promote remote working and encourage people to stay/relocate to Offaly. Lead the development of an attractive Tourism destination brand. Continue to secure funding opportunities Projects Ireland 2040 (URDF and RRDF).

Offaly to take advantage of the Transition A fair and sustainable future for Offaly More than any other County, Offaly punches above its weight in terms of renewable energy generation and its contribution to the achievement of carbon neutrality. Offaly has a long tradition of expertise and skills in energy generation and a hard-won public acceptance of energy infrastructure. Connectivity of Offaly including grid, gas, fibre, water, roads is fundamental to securing a Just Transition. Government policy and decision making around energy and infrastructure must recognize and unlock the potential of Offaly for investment and job creation.

Thank you