Food Drink Ireland (FDI) has today (Friday, September 1) published its Budget 2024 submission which calls for additional supports for the food sector to assist its development into a low carbon economy.
FDI, the Ibec group representing the food and drink sector, is seeking incentives to support investments in low carbon processes.
Paul Kelly, FDI director said: “High levels of input cost inflation (energy and commodities) are impacting on margins, competitiveness, and investment decisions.
“At the same time, there is an increased need to build resilience against high ongoing energy costs and wider competitiveness pressures whilst investing heavily in low carbon / resource efficient processes and accelerating digital transformation measures.”
For the food and drink sector to achieve its emissions reductions targets in agriculture, the FDI has stated it will require significant government support.
The agriculture emission reduction target of -25% by 2030, and a reduction target of -35% for the industry sector by the same period “will require significant government support to assist the food sector in the transition to a low carbon economy in the decades ahead” according to the FDI director.
FDI budget submission
The FDI Budget 2024 submission includes the following recommendations:
- To expand Sustainable Energy Authority of Ireland (SEAI) project assistant grants, the Support Scheme for Renewable Heat, and the Excellence in Energy Efficiency Design programme to support large scale decarbonisation;
- Maintain the accelerated capital allowances for energy-efficient equipment which is due to end in 2023;
- An increase in the accelerated capital allowance for energy efficient products and equipment to an allowance of 130%;
- Budget 2024 must drive increased uptake of microgeneration measures at factory level through the full roll-out of the Micro-Generation Support Scheme, the Clean Export Guarantee, the Clean Export Premium tariff, and ancillary informational supports and resources for end-users;
- Investment supports such as the Employment Investment Incentive Scheme and R&D (research and development) tax credit should be regularly reviewed to ensure that they are attractive for investment in the most cost-effective low carbon technology;
- Introduce accelerated capital allowances for advanced manufacturing including computerised machinery and robotic machines;
- Using the €85 million digital transition fund to drive further digital transformation across the food and drink sector through the introduction of a new grants, schemes for businesses and the establishment of European digital innovation hubs;
- An increase of the innovation voucher value to €10,000 which allows businesses to engage for the first time in formal research, development, and innovation activity;
- More supports for the continued development of recycling infrastructure and to work with the waste sector to encourage investment in technologies to develop the circular economy.
The FDI budget submission also calls for Brexit Adjustment Reserve (BAR) funding to be extended into 2024 to “future proof the sector from the increased costs of trade due to Brexit” and for “measures to support the experience economy’s competitiveness and productivity”.