Building a smart, sustainable economy
In December 2008 the Government outlined its vision for the next phase of Ireland’s economic development. Read more.
Introduction by Energy Minister Eamon Ryan TD
The smart economy is a green economy. This is the first Government economic plan with sustainability at its heart. It is a fundamental change in our economic direction and thinking.
Unsustainable economics brought the world markets to our current position. Following a sustainable path will bring us out. It will mean a resilient economy avoiding ‘boom and bust’ growth. I want a robust economy less prone to external shocks. For this to happen our entire economy must move in a greener direction.
Greening our economy can also help turn the economy around. We will do this by implementing a 'green new deal.'
Our €30bn investment in clean energy over the next decade will reduce our fossil fuel bill, keeping energy investment and jobs in Ireland. Energy efficiency measures will reduce the cost of energy for business and householder alike.
Transforming our country to a low-carbon economy offers the best long-term bet for recovery, for investment and lasting jobs.
Executive Summary
This Framework for Sustainable Economic Renewal sets out the Government’s vision for the next phase of Ireland’s economic development, which is predicated on successfully addressing the severe economic situation we face, restoring stability to the public finances, and beginning the process of restoring competitiveness.
Building on the significant strengths of the economy, which provide strong foundations for future export-led economic growth, this document sets out an ambitious set of actions to develop Ireland’s Smart Economy.
Our strategy is to:
- address the current economic challenges facing the Irish economy by stabilising the public finances, improving competitiveness, assisting those who lose their jobs, and supporting Irish business and multinational companies;
- invest heavily in research and development, incentivise multinational companies to locate more R&D capacity in Ireland, and ensure the commercialisation and retaining of ideas that flow from that investment;
- implement a ‘new green deal’ to move us away from fossil fuel-based energy production through investment in renewable energy and to promote the green
- enterprise sector and the creation of ‘green-collar’ jobs;
- develop first-class infrastructure that will improve quality of life and increase the competitiveness of Irish business.
The Smart Economy
The Smart Economy combines the successful elements of the enterprise economy and the innovation or ‘ideas’ economy while promoting a high-quality environment, improving energy security and promoting social cohesion. A key feature of this approach is building the innovation or ‘ideas’ component of the economy through the utilisation of human capital - the knowledge, skills and creativity of people - and its ability and effectiveness in translating ideas into valuable processes, products and services. A second important aspect is the greening of the economy and the development of green enterprise.
We can learn lessons from the current international financial crisis and pursue these twin initiatives to ensure the creation of high quality, well-paid employment which lasts through any future upturns and downturns in the global economy.
The Smart Economy has, at its core, an exemplary research, innovation and commercialisation ecosystem. The objective is to make Ireland an innovation and commercialisation hub in Europe – a country that combines the features of an attractive home for innovative R&D-intensive multinationals while also being a highly-attractive incubation environment for the best entrepreneurs in Europe and beyond. This will be the successful formula for the next phase of the development of the Irish economy and for delivering quality and well-paid jobs.
The Smart Economy is a ‘Green Economy’ in that it recognises the inter-related challenges of climate change and energy security. It involves the transition to a low-carbon economy and recognises the opportunities for investment and jobs in clean industry. The core of this Green New Deal is a move away from fossil-fuel based energy production through investment in renewable energy and increased energy efficiency to reduce demand, wastage and costs.
This sustainable approach to economic development complements the core strength of our economy in the use of natural resources in the agriculture, forestry, fisheries, tourism and energy sectors. It recognises that our manufacturing industries are already relatively clean and green in the low level of resource inputs they use and environmental outputs they create. It will allow us develop a digital services export economy which will only require a high speed broadband network, a renewable electricity supply and our own ingenuity to succeed.
The resolution of Lisbon Treaty issues is important to the success of this plan as any uncertainty about Ireland’s future position in the European Union is a serious threat to our future economic performance, in particular, the attraction of foreign investment. At the same time, there is now an important all-island dimension to all aspects of Government policy and, to the extent that it is appropriate, and by agreement with the Northern Ireland Executive, all of the policies, programmes and initiatives in this Action Plan will take full account of the mutual benefits available through North-South co-operation.