THESMARTFUTURE

11 June 2015

Insideπ Future Proof:Nine megatrends ourplanet must be ready for

π Smart Is The NewGreen:the Irish irms leading the worldin clean and smart technology

π Sustainability: Why It MattersFrom investment to education

Supported by

Special

20-page

supplement

INTERNATIONAL SUSTAINABILITY

AND INVESTMENT CENTRECapital working for sustainability

Irish Independent I 11 June 2015

Ourbrilliant

opportunityIreland is uniquely positioned to lead the

world into a cleaner, smarter future.

2 THE SMART FUTURE

Imagine a world where farmers control

their crops by remote control, where

city centre skyscrapers are lit using

nothing but wind power and where pollut-

ing emissions are a thing of the past.

Well, in many respects the smart future

is already here and most of these once

unimaginable goals will soon be part of

daily life.

The business of clean technology and

investment in sustainable products and

services is advancing at a rapid rate as

global nations embrace the absolute ne-

cessity of a low-carbon economy in which

resources are preserved and used in new

ways to sustain everyone that lives on this

planet.

In Ireland alone we already have 640

businesses working to cut waste, generate

energy from natural sources and create

smart tech products that can make peoples

lives easier and more comfortable.

In recognition of the present and future

potential of this multi-trillion euro global

sector, the government in 2011 backed the

creation of Green IFSC, to accelerate the

positioning of Ireland as a global leader in

sustainability investment.

The success and evolution of our work

has brought with it a new name; Green

IFSC is now called the International

Sustainability & Investment Centre (ISI

Centre).

In this special edition of The Smart Fu-

ture, we hope to explain the exciting role

and mission of the ISI Centre and to show-

case the dynamic work and future vision of

Irish companies and agencies, working in

the sustainability and investment areas.

These include the state forestry compa-

ny Coillte, Bank of Ireland, KPMG and the

Sustainable Energy Authority of Ireland

(SEAI).

In support of the national competitive-

ness agenda, the vision of the ISI Centre is

to facilitate companies innovating in the

sustainability sector and investors - so that

they understand each other. Ultimately, of

course, we aim to help them to do business

together.

As Ireland continues on the path to a

robust national recovery, we understand

that business supports Ireland’s job cre-

ation agenda. The country has a thriving

sustainability sector with Irish companies

leading the way.

In this supplement you will hear about

some of these companies. We also bring

you a detailed look at the growing clean

technology sector and the emergence of

Ireland as a go to location for environmen-

tal funds.

We hope that those who are new to this

exciting area will learn a bit more about

the innovations that Irish firms, entrepre-

neurs and universities are undertaking.

With knowledge and capital investment,

they are building the businesses of the

smart future.

ISI Centre

Q&A

What is the International Sustainability&

Investment Centre (ISIC)?

TheInternationalSustainability InvestmentCentre

(ISICentre) is the newname for the Ireland’s sus-

tainabilityhubwhich is fosteringcapital investment in

sustainableenterprise.Rebranded fromGreenIFSC

in March 2015, ISI Centre builds on Green IFSC’s

earlier success in positioning Ireland as a global

leader in sustainability investment. The ISICentre

iswider in focus than just finance - it recognises that

what is really settingIrelandapart from international

competition is the fusionof our sustainability enter-

priseand investmentexpertise. Irishhumancapital

is increasinglymanaginganddeploying international

funds into local or international sustainability pro-

jects. Irishexpertise is thensuccessfullydeliveringon

theseprojects.TheISICentre isaiming to recognize

this26countycluster spreadunderoneholistic flag

that togethercanattractgreater international capital

and create new jobs.

Why is there is a need?

As countries around the world strive to meet the

challengesof climatechange, resourcescarcityand

energy security, the changeswewill see in the next

10yearswill beasprofoundas thoseexperienced in

the industrial revolution. Growing global affluence,

climate change, population growth and increasing

urbanisationwill seean increasingdemand for scarce

resources. By 2030 it is estimated that resource

needs will increase by 40pc for water and 50pc for

both food and energy.

What type of investment is needed tomeet

these global challenges?

The investment opportunities presented by these

INTERNATIONAL SUSTAINABILITY

AND INVESTMENT CENTRECapital working for sustainability

Introduction

Stephen Nolan

Stephen Nolan is CEO of the ISI Centre

ties that will produce an annual income,

one that is attractive but is also provides

global sustainable solutions.

Where does Ireland stand?

Ireland has a thriving sustainability sector

and Irish companies have been leading

the way in developing renewable, food

and other sustainable projects on a global

scale. There are more than 600 Irish based

enterprise firms in this dynamic and rap-

idly-growing sector.

Ireland also has one of the most sophis-

ticated investment management industries

in the world with expertise in fund ser-

vicing, administration and asset manage-

ment. The country also has well-developed

and regulated services in this area. Ireland

is currently servicing more than $3 trillion

in funds.

The combination of the expertise

in both sustainability enterprise and

investment management has led to Ire-

land becoming a centre of choice for the

establishment of green funds, which today

stands at $35 billion.

The spread of expertise is truly national:

Blackrock Renewable Power is headquar-

tered in Dublin. Brookfield, one of Cana-

da’s largest infrastructure investors has its

European headquarters for renewables in

Cork. Kleinwort Benson Investors manage

one of the most successful water funds

from Ireland. Our own firm Amarenco

Solar has over €100million under manage-

ment investing in PV infrastructure with a

pipeline of €300m on our books in Ireland

and France.

Anational competitiveness agenda

Ireland’s unequalled talent pool with its

expertise in sustainability investment puts

us ahead of the curve in these sectors. We

also have the tools in legislative, regulatory

and tax areas that support the growth of

sustainable enterprise and capital invest-

ment.

Bringing the above together into one

coherent message helps to promote Ireland

as the location of choice for international

capital to invest in sustainability enter-

prise activities.

Such positive activity underpins Ire-

land’s national competitiveness agenda

and supports jobs creation.

And at a time when sustainability is

rapidly becoming a vital issue for the inter-

national financial community and policy-

makers it demonstrates real leadership.

International Sustainability Investment

Centre, realising Ireland’s ambition

The International Sustainability Invest-

ment Centre (ISI Centre) is the new name

for the Ireland’s sustainability hub which is

11 June 2015 I Irish Independent THE SMART FUTURE3

CONTENTS4

KPMG onMegatrends

The global challenge

5Climate-Kic

A Europe-wide initiative

6Pat Cox

The Sustainability Gathering

7Ireland’s sustainability map

The eco-system in stats

8&9Focus: Bank of Ireland

The low-carbon economy

10Just what is cleantech?

The sector explained

14&15Investment: Why Ireland?

Our expertise and talent

16Cutting-edge Coillte

How it is helping business

18City of the Future

Smart Vision of Dublin City Council

Published by Independent Newspapers Ltd.,

27-32 Talbot Street, Dublin 1, Ireland

EDITOR: Ciaran Byrne

DESIGN: SusanMcClean

CONTENT DEVISED BY:

www.storylab.ie

Content | PR | Socia l

Change in our world is accelerating

in tandemwith rapid advances in

technology. The changes we will

see over the next 20 years will be more

profound as those experienced in the in-

dustrial revolution and represent a digital

revolution unseen in our history.

Technology has changed the fundamen-

tals of so many industries – records are

replaced by streaming; taxis can be shared

or ordered on Uber or Hailo and hotels can

be replaced by Airbnb but what does the

future hold for energy in how we produce it

and how we consume it?

There are a number of demographic

facts that will also determine change. The

planet will have 9 billion people very soon.

More people will meanmore pressure on

already scarce supplies of water, food and

energy.

Growing global affluence, climate

change, the trading shift fromwest to

east, population growth and increasing

urbanisation will all add to the immense

pressures being put on our planet.

But as Ireland and countries around the

world strive to meet the twin challenges of

climate change and energy security, there

will be huge opportunities to do the right

things; to contribute, to build, to devel-

op – to sustain the world and this will be

enabled by existing and future technolo-

gies. There are developments globally that

are emphasising this rate of change. These

are in the areas of energy production and

distribution, land use and food to high-

growth areas such as energy management

and emerging markets in clean technology

and clean manufacturing.

Energy consumption will be a choice at

the fingertips of the customer. They will

decide how they want their energy rather

than been told by the utility sector.

New sustainable businesses need

investment and capital. The amount of

investment required is globally signifi-

cant. Globally investments in low carbon

technologies will need to hit $500 billion

per annum by 2020 and double to $1 tril-

lion annually by 2030. In 2014 alone $310

billion was invested in clean energy, a 16pc

increase on what was spent in 2013.

These trends are set to continue with

global investors looking for alternative

businesses and assets in which to invest.

They want secure investment opportuni-

fostering capital investment in sustainable

enterprise.

Rebranded from Green IFSC inMarch

2015, the ISI Centre builds on Green IFSC’s

earlier successes in positioning Ireland as

a global leader in sustainability invest-

ment.

The concept for the original Green IFSC

initiative was approved by Cabinet in 2011

and was a public-private output of the

former Clearing House Group, under the

auspices of the Department of the Taoise-

ach.

Following further work, Green IFSC

gathered momentum inmid-2013. Origi-

nally established to promote and position

Ireland as a global location for ‘green fi-

nance’ the ISI Centre is continuing on this

work. But it has also evolved to include the

financing and investing of sustainability

enterprise sectors at a domestic and inter-

national level. This includes investment in

research, technologies, programmes and

projects as well as skills generation.

We recognise that this is what sets us

apart from international competition. Irish

human capital is increasingly managing

and deploying international funds into lo-

cal or international sustainability projects.

The ISI Centre is also promoting

Ireland around the world in order to raise

awareness of our nation’s unique skills in

managing, servicing and deploying funds

investing in sustainable industries.

We are focused on ensuring that the

tools for success across talent development

and an excellent business environment are

in place.

We also want to identify the knowledge

gaps and develop aims to position Ireland

as a world leader in all things sustainable

and a global centre of excellence for sus-

tainable finance.

Our vision is to act as a conduit - both

domestically and internationally - between

those operating in the sustainability sector

and capital investors.

In doing so, we offer a platform for those

working right across the sustainability

sector to come together, understand each

other - and ultimately do business together.

We know that a strong, vibrant sustain-

able industry can contribute hugely to our

long-term economic growth.

It can and will provide sustainable

job creation, and continue to foster the

emergence of world-class Irish companies

in one of the fastest industrial sectors in

the world – keeping our world as it is –

sustained.

changes are considerable. Globally investments

in low carbon technologies will need to double

to $500 billion annually by 2020 and double

again to $1 trillion annually by 2030. In 2014

$310 billion was invested in clean energy, a

16pc increase on 2013 spend. The ‘green bond’

market trebled in size in 2014 to $35 billion,

and is tipped for further growth this year to an

estimated $100 billion as investors look for a

green home for their capital.

In what areas?

Opportunities are across thewhole spectrum in

established areas such as Energy Production&

Distribution, LandUse and Food and high-growth

areas such as Smart Energy Management as

well as emerging sectors such as Clean Web &

Clean Manufacturing.

Ireland’s Opportunity

Ireland has a thriving sustainability sector and

Irish companies have been leading the way in

developing renewables, food and other sustainable

projects on a global scale. Ireland also has one of

themost sophisticated investmentmanagement

industries in theworldwith expertise in fund ser-

vicing, administration and assetmanagement. This

combination has led to Ireland rapidly becoming

a centre of choice for the management, deploy-

ment and servicing of environmental funds, which

combined today stands at $35 billion in Ireland.

The development of the ISI Centre will ensure

that Ireland will continue to lead enterprise,

capital deployment and talent development in

the sustainability space, ensuring jobs growth and

economic growth across the country underpinning

our national competitiveness.

JohnMullins is ISI Centre Chairman,

CEO of Amarenco Solar and

Chairman of the Port of Cork

John Mullins

Accounting firmKPMG is on a mission tochange the way we lookat the world and to helpbusinesses innovate withsustainable products and

investments

As morning broke on

February 12th, 2014 those

living along Ireland’s

western seaboard opened

their front doors to be

greeted with a sight of

sheer devastation – some said what they

witnessed resembled a ‘disaster-zone’.

Others waded through water in their

hallways.

As they slept, or at least tried to, Storm

Darwin with gusts of over 100 kilometers

an hour, bashed our Atlantic Isle. There

were power outages to 260,000 homes as

well as wide-scale destruction of infra-

structure, homes and businesses. As many

as 7.5 million trees were felled.

But the majority of the damage was

caused by flooding. The storm surges

hit when tides were at their highest. The

combination of factors resulted in the state

and private insurance companies forking

out tens of millions of euro to help repair

the wide scale damage.

As the water level dropped and the

winds eased people started asking why

we’d made no provisions for this inevita-

bility, had we sleep-walked into a disaster

and left our coastal towns exposed – or

perhaps some land should be evacuated

permanently for fear of unstoppable flood-

ing in the future?

Irish Independent I 11 June 20154 THE SMART FUTURE

of the megatrends KPMG are discussing

with their clients on a daily basis. “The

global demographic is shifting, people

are living longer, Africa is a developing

at an incredible rate and alongside this,

society’s awareness of ethics and values is

also evolving – we’re holding companies

and governments accountable for their

management of our futures.”

KPMG has identified nine global

‘megatrends’ and analyzed how they will

impact on world governments, businesses

and citizens in a special report entitled

‘Future State 2030’.

Megatrends are long-term changes that

affect governments, societies and econ-

omies permanently over a long period of

time.

At first glance the pace of change, spelt

out so clearly, sends shivers down the

spine.

But Caroline believes we’re already

adapting to these changes and designing

our lives accordingly. “People are starting

to think about where their food comes

from, whether they need to wash their

clothes at 60 degrees, which bin to put

the empty milk carton in.” It seems we’re

already bringing the smart future into our

homes.

She said that “we at KPMG believe that

government, business and citizens each

have a role to play to counterbalance these

mega trends or we and our descendants

will face a very different future.”

And Partner at KPMG Mike Hayes told

me that businesses, both large and small,

shouldn’t ignore the changing environ-

ment and global developments.

He said: “Businesses and governments

will do so at their peril. There are societies

and businesses around the world that will

be impacted either in a positive or negative

way by these megatrends – but if they bury

their heads in the sand and simply ignore

them we believe it’s the worst single thing

they can do.”

While some nations are slow to adopt

sustainable policies Mike believes Ireland

is internationally recognized as a leader

in driving innovation and development in

the sector:

“The rate of change in Ireland in this

whole area is phenomenal. We punch well

above our weight globally, for example,

Irish companies are at the forefront in

building wind and solar facilities in

places like South Africa, Ghana and South

America. There’s a growing recognition

that this is an opportunity for us, we’re an

entrepreneurial people and many see that

the future of sustainable energy and new

technology in this area is brimming with

possibilities.”

KPMG advises companies in the area

of sustainable business and Mike explains

that in boardrooms senior executives are

starting to realize the need for sustainable

policies and a shift in the way they look at

the world.

WELIVE INAWORLDOFFINITERESOURCES -WATER, ENERGY,FOOD, LAND….ALLOFTHESETHINGSARERESTRICTEDANDWENEEDTOGET‘SMART’ INTHEWAYWEUSETHEM

As I sit with Mike Hayes and Caroline

Pope, leading KPMGs Sustainability

practice, we talk about some of these likely

changes and how Ireland’s people, govern-

ment and businesses are preparing.

“We live in a world of finite resources

- water, energy, food, land…. all of these

things are restricted and we need to get

‘smart’ in the way we use them” says

Caroline as she introduces me to some

Megatrends:acting now will benefit us all

Graham Clifford

1Demographics

Higher life expectancy and falling birth

rates are increasing the proportion of

elderly people across the world, challeng-

ing the solvency of social welfare systems,

including pensions and healthcare.

2Rise of the individual

Advances in global education, health and

technology have helped empower individ-

uals like never before, leading to increased

demands for transparency and participation

in government and public decision- making.

Also social mobility faster than ever.

3Enabling technology

A newwave of technological advances

is now creating novel opportunities, while

testing governments’ ability to harness their

benefits and provide prudent oversight.

4Economic interconnectedness

The interconnected global economy

will see a continued increase in the levels of

international trade and capital flows.

5Public debt

Governments’ ability to bring debt under

control and find newways of delivering

public services will affect their capacity

to respond to major social, economic and

environmental challenges.

6Economic power shift

Emerging economies are lifting

millions out of poverty while also exerting

more influence in the global economy.

With a rebalancing of global power, both

international institutions and national

governments will need a greater focus

onmaintaining their transparency and

inclusiveness.

7Climate change

Rising greenhouse gas emissions (GHGs)

are causing climate change and driving a

complexmix of unpredictable changes to

the environment while further taxing the

resilience of natural and built systems.

8Resource stress

The combined pressures of population

growth, economic growth and climate change

will place increased stress on essential

natural resources includingwater, food,

arable land and energy.

9Urbanization

Almost two-thirds of theworld’s

population will reside in cities by 2030.

Urbanization is creating significant

opportunities for social and economic

development andmore sustainable living, but

is also exerting pressure on infrastructure and

resources, particularly energy.

TheNineMegatrends

SHAPINGCHANGE: KPMG’s CarolinePope andMikeHayes.Picture by Ronan Lang.

Climate-Kic

11 June 2015 I Irish Independent THE SMART FUTURE 5

He said: “Around the world we are see-

ing the bigger businesses starting to grap-

ple with this – this is starting to become a

boardroom issue.”

But what about the individual, you and

I, can we really make a difference? Will

our actions have an impact on how our

planet will look in half a century?

“Yes I believe they will. It’s not all

about what big businesses or governments

decide,” explains Caroline.

She adds: “For example we know that

the Generation Y (often referred to as the

Millennial Generation) are more social-

ly and environmentally conscious than

previous generations. They, as individuals

and a group, will want to purchase more

green products and sustainability is an

important issue for them. If the corporate

sector ignore this group, which is also their

future workforce, their businesses will suf-

fer so the actions of individuals can help to

drive change without a doubt.”

Since 2002 (has it really been that long!)

Ireland has had a plastic bag levy in place

which has not only brought in

taxation for the government to be used

on environmental policies but has also

reduced the number of plastic bags circu-

lating.

Bag usage has fallen from 328 bags per

shopper here in 2002 to just 21 now. The

success of this initiative, and recycling

efforts, shows that our habits can change

and that, with a little help from the state

and business, we can become a greener

and more forward looking nation.

“I really believe that we can help make

Ireland a global Centre of excellence in

this area,” says Mike, adding “We need to

be smart both on a personal and business

level. There are opportunities that exist

and also we need to protect our planet and

hand it onto our grandchildren in a better

state than it’s been. Here at KPMG we are

working hard to make that happen and I

feel great getting out of bed every morning

knowing that the advice and help we give

businesses can help them to not only be

successful but that we are also contribut-

ing in our own way to a smarter and more

sustainable future for the next generation.”

Eleanor KennedyC

limate-KIC is one of Europe’s

leading associations working

to address and tackle climate

change, and the past two years

has seen Ireland get in on the act.

Both Energy Cork and The Greenway

Dublin are currently involved in projects

which has seen them gain nearly €600,000

worth of funding to date.

Along with their partners in the West

Midlands, UK, they are looking to deliver a

suite of exciting opportunities in the low-

carbon sector for 2015.

Climate-KIC brings together partners -

large and small, local and global - between

the private, public and academic sectors.

These partnerships integrate research,

business and technology to transform

innovative ideas into new products,

services and jobs.

The organisation does this to address

today’s challenges of climate change

using the work of their three areas of

expertise: innovation, education and

entrepreneurship.

The partnership is unique in that it links

entrepreneurs, businesses and students.

Various programmes and summer

schools are offered to deepen and develop

knowledge in climate change.

Some of the partnership’s projects

across Europe include testing the

possibilities of using CO2 as industrial

feedstock, reducing carbon omissions in

the aviation sector and looking at business

opportunities for sustainable coastal and

river engineering.

The funding received in Ireland

allows participants to facilitate a series

of education, training, incubation and

entrepreneurship programmes for the low-

carbon sector.

In 2015 combined, The Green Way

Dublin and Energy Cork received €300,000

worth of funding.

This was the first time an Irish

‘community’ was selected to join Climate-

KIC’s fight against climate change.

Sustainability is the theme for a veryspecial event in Dublin, writes Pat Cox

Irish Independent I 11 June 20156 THE SMART FUTURE

Sustainability is rapidly becoming

a vital issue for the financial com-

munity and policymakers.

The emerging response of gov-

ernments and business to the challenge of

climate change looks increasingly likely to

divert capital away from carbon-intensive

fossil fuels towards renewables and energy

efficient technology.

In addition, as the global population

increases from seven billion to nine billion

between now and 2050, and the spending

power of consumers in emerging markets

rises, increasing strain will be put on the

supply of food, energy and water. This will

place further focus on the efficient use of

resources.

Forward-thinking businesses and

governments are already adapting to these

trends – and are recognising that they pres-

ent opportunities as well as risks.

SUSTAINABILITYRISESUPTHEAGENDA

Numerous developments in recent months

have highlighted how sustainability is

rising up the agenda.

For example, UN Secretary General

Ban Ki-moon’s New York climate summit

in September 2014 re-energised climate

change negotiations, and was notable for

the backing it received from ‘big business’.

The summit mobilised meaningful

commitments, including a pledge from

governments and players from across the

financial sector to commit $200 billion to

climate-related investments by the end of

2015.

Meanwhile, the fledgling ‘green bond’

THESUSTAINABILITYGATHERING:

CAPITALWORKING FORSUSTAINABILITY

Ireland’s third Sustainability Gathering,

which I am delighted to Chair, will provide

an opportunity for hundreds of investors,

entrepreneurs and policy-makers from

Ireland and across the globe to explore the

opportunities in this field.

This year we are celebrating Ireland’s

leadership capacity in sustainability -

across innovation, finance and talent

development. And we have much to

celebrate! The sector is creating innovative,

world-beating solutions. Irish firms are cre-

ating jobs and winning global investment.

We are regularly competing and winning

against the best in the world.

With this year’s theme - Capital Working

For Sustainability, the Sustainability

Gathering is spread over three-days with

the plenary session taking place on the

24th June in Dublin Castle. On the 22nd

and 23rd June, separate events will focus

on the financing of Irish cleantech start-

ups and see the launch of Docklands 21,

an innovative partnership between SEAI,

Dublin City Council and ISIC to ensure

that at a business level Dublin’s Docklands

market trebled in size in 2014 to $35 bil-

lion, and is tipped for further growth this

year to an estimated $100 billion as inves-

tors look for a green home for their capital.

In addition, 2014 saw $310 billion invested

in clean energy, a 16pc jump on 2013 spend.

EMISSIONSAREBECOMINGMATERIAL

EU politicians are making a concerted

effort to fix the world’s biggest carbon mar-

ket, and other emissions trading systems

are springing up from California to South

Korea. China will roll out a national carbon

market in 2016.

The EU has agreed 2030 emission

reductions targets while China and the US

have advanced their dialogue on emissions

cuts. The UN climate talks in Paris at the

end of this year are expected to see further

progress towards hammering out a policy

response to tackle climate change.

IRELAND INTHEVANGUARD

Ireland can position itself at the vanguard

of the response to these trends, and is in

many ways uniquely positioned to help

address these challenges.

Dublin is emerging as a hub for envi-

ronmental finance by attracting green-fo-

cussed asset managers, replicating its

previous success attracting sectors such as

aviation aircraft leasing and ICT.

The country’s businesses, which have

already innovated products and services

in these fields, are increasingly looking

overseas where their expertise is helping to

finance, develop and construct sustainabil-

ity related projects across the globe.

are undertaking best in class resource

efficiency measures. Against this backdrop

there will be a number of important job

and investment announcements.

These events will provide delegates

with the opportunity to learn about the

latest developments, and network with key

players.

Ultimately, this year’s Sustainability

Gathering aims to facilitate transactions

that will steer capital towards investments

that are environmentally, socially and

financially sustainable in terms of their

return. In doing so, the intention is to fur-

ther consolidate Ireland’s emerging lead as

a go-to location of choice for sustainability

enterprise and finance activities, creating

jobs and winning investment.

AGatheringlike no other

Servusnet, aCork ICTcompany, remotely

monitors windfarms in Texas with a

unique predictive maintenance system

that greatly reduces costs.

A new street light technology, invented and

manufactured in Ireland by SELC, is being

deployed in locations as diverse as Orlando,

Copenhagen and Paris.

Not only does it dramatically lower energyuse,

but it also acts as a wireless data relay network

that can sell data and control services.

Sustainability is no longer a fringe issue or

optional extra, but a major strategic driver in

businessglobally. It is driving change, andchange

means opportunity.

“Ireland has a particular opportunity here,”

says Brian Motherway, chief executive of the

Sustainable Energy Authority of Ireland.

“This is partly because we have our own

sustainability imperatives to address. We import

billions of euros worth of fossil fuels, waste mil-

lions of euros in inefficient energy use, and emit

millionsof tonnesof pollutinggreenhousegases.

“All of these unsustainabilities must be ad-

dressed, and that is the coremissionof our energy

policy. But we have gone further, and we have

‘Sustainability no longer a fringe issue or optional extra’aligned these energy policy imperatives with the

enterprise opportunities that they create.

Motherway calls this a smart alignment,

because sustainability has become a project of

innovation centred in particular on Information

and Communications Technology (ICT).

Irish firms are heavily involved in this impor-

tant, growingareawith activities in data analysis,

remote sensing and communication, prediction

and control, devices and software.

Innovators in all of these areas have realised

the opportunity, says Motherway.

“Every day I meet entrepreneurs and innova-

tors who see that their solutions can be quickly

applied to, and monetised in, reducing users’

energy bills and carbon footprints. A technology

that helps someone reduce their energy costswill

sell not just in Ireland, but globally.”

Motherway mentions the story of Crowley

Carbon, one of the fastest growing companies

in this sector. Its intelligent analysis systems

are reducing energy bills everywhere from food

factories in the UK to office towers in Dubai, all

done out of a control centre in County Wicklow.

Inplottingour energy future, the key is tomake

the right decisions that play to our strengths.

Irelandhas theadvantageof a rangeof indigenous,

clean energy sources, all of which play a part.

SEAI’s analysis shows that wind remains the

cheapest andmost beneficialway todecarbonise

electricity supply.

It believes there is an opportunity to deploy

bioenergy resources in local heat supply, and big

names in industry – Aurivo, Astellas, De Puy to

name but three – have already invested heavily.

Investment createsa strong local supply chain,

supporting rural jobs in everything from forestry

to boiler technology,” says Motherway.

“Meeting our 2020 renewable heat target, if

we focus on local resources, will create a local

supply chain worth €200 million per annum and

support over 5000 jobs.

One of the major local resources Ireland can

deploy is intellectual capital. Irelandhasdeclared

its ambition tobeacentre of innovation for energy

and sustainability.

“This apporachwill reap rewards.We takeour

own sustainability challenges seriously, and we

knowweneed toaccelerate our action to address

them,” adds Motherway.

“Itwouldbe folly not tomaximise theeconomic

and employment gains as we do so”

The head of theorganistion taskedwith driving Ireland’sevolution to a cleaneconomy says weare uniquely placedto maximise somebrilliant opportunities,writesCiaran Byrne

Pat Cox is the former president of the

European Parliament and chairman of

Sustainability Gathering 2015.

11 June 2015 I Irish Independent THE SMART FUTURE7

TO BE INVESTED INTO CLEANTECH BY 2050 (UN)

$36trillion

INTERNATIONAL SUSTAINABILITY

AND INVESTMENT CENTRECapital working for sustainability

SNAPSHOT OF IRELAND'S SUSTAINABILITY ECO-SYSTEM

Energy Production& Distribution

29%

Energy Efficiency& Management

27%

Resource recovery

10%

Water

8%

Cleanweb

7%

Clean industry

6%

Energy Storage

4%

Agriculture & Forestry

3%Air

3%

Transport

3%

640TRADING ORGANISATIONS

ACTIVE ACROSS 10CLEANTECH HEADINGS

450COMPANIES SIGNED UP TO THE

BORD BIA ORIGIN GREEN INITIATIVE

18000NUMBER OF DAIRY FARMS SIGNED UP TO

SUSTAINABLE DAIRY ASSURANCE SCHEME

ESTIMATED ANNUAL INVESTMENT IN THE

IRISH SUSTAINABLE ENERGY SUPPLY CHAIN (SEAI)

€1.4BILLIOn

IRELAND RANKED

IRELAND RANKED

IN THE 2014 GLOBAL CLEANTECH INNOVATION INDEX

IN TERMS OF ITS EMERGING CLEANTECH INNOVATIONS

ACROSS ALL GLOBAL CLEANTECH INNOVATION INDICES

5TH OF 40 NATIONS

10TH OF 40 countries

FOR RD&I INPUTS – EU’S ECO OBSERVATORY INDEX

2nd OF 27eu nations

FOR AVAILABILITY OF SKILLED LABOUR

1st in the world

FOR SUPPORTIVE GREEN TAX POLICY (KPMG)

RANKING IN THE GLOBAL CLEANTECH INNOVATION

INDEX 2014 CLEANTECH START-UP GENERATOR COUNTRIES

7th globally

top 10

94 IRISH ACADEMIC AND RESEARCH

ORGANISATIONS IN THIS SPACE

GLOBALLY INVESTED IN CLEAN ENERGY IN 2014

$310BILLIOn

$35BILLIOnIN ENVIRONMENTAL FUNDS MANAGED, DEPLOYED OR SERVICED FROM IRELAND

Irish Independent I 11 June 2015Irish Independent I 11 June 20158 THE SMART FUTURE

Lowcarbon economy?Welcome toour future

IRELAND’s businesses are more

aware than ever before of sustaina-

bility and of the adverse impacts of

climate change and resource scarcity.

It is no surprise, therefore, that

Bank of Ireland sees more and more

sustainable and ‘green’ businesses being

established.

And, as Irish companies expand activi-

ties in this sphere, Bank of Ireland is play-

ing a key role in supporting their growth

and development.

As the largest lender to the Irish econo-

my, the bank is focused on developing new

business areas, supporting existing clients,

and fostering enterprise across Ireland.

The growing trend towards “green

finance” has been a feature of the bank’s

activities for some time.

“We have enjoyed a good track record

in Renewable Energy financing for over a

decade, building a portfolio of wind farms

with an output capability in excess of

350MW – sufficient to power over 200,000

homes in Ireland,” says Paul Harris Head

of Natural Resources at Bank of Ireland.

“As well as a pipeline of new wind

energy transactions, the project finance

team at Bank of Ireland is engaged with

both the biomass and waste management

sectors in support of growing the Irish

economy.”

Another related area for the bank is the

emergence of clean technology, known as

‘cleantech’ by those who work and invest

in this sector.

Cleantech is the use by businesses of

smart technology in areas as diverse as

energy efficiency and agriculture.

Bank of Ireland has several partner-

ships with innovators in finance and

business including Kernel Capital, which

manages the Bank of Ireland Seed and

Early Stage Equity Fund. In total the

Bank’s Seed Fund has provided nearly €50

million for early stage enterprise across

Ireland and, as part of that, has supported

a number of indigenous cleantech compa-

nies, including Hybrid Energy, Resource-

kraft, BioAtlantis, Monford Ag Systems

and Silform Technologies.

In Ireland there are approximately one

hundred companies compelled to balance

their annual carbon emissions through

both changes to business practices and the

purchase of carbon credits.

The carbon market is complex and

unique and over the last decade the Bank

has successfully developed a trading exper-

tise, enabling companies to effectively and

efficiently manage their carbon exposures.

It has become one of the most pio-

neering activities undertaken by Bank of

Ireland in the entire area of sustainability.

In 2005, the Global Markets division

of the bank took a strategic decision

to launch a dedicated unit to support

corporate clients who fell within the EU

THEWILLINGNESS

ANDABILITYTO

CONSTRUCTIVELY

RESPONDTOPOLICY

CHANGES INTHE

SUSTAINABILITY

AREAHASBEEN

KEYFORBANK

OF IRELAND

Big investment in renewable energy and clean technology is a key pillarof Bank of Ireland’s long-term strategy, writes Ciaran Byrne

11 June 2015 I Irish Independent11 June 2015 I Irish Independent THE SMART FUTURE9

Bank of Ireland has long recognised

that its business activities have an

impact on the environment, both

globally and locally.

It is the bank’s policy to minimise its impact.

It does that by focusing on pollution prevention

by identifying, controlling and reducing signif-

icant environmental impacts.

These arise from the consumption of utilities

including electricity, gas, oil, water and paper

consumption and waste management.

“We undertake a process of continuous

improvement of environmental performance by

setting objectives and targets and developing

environmental programmes,” says Paul Harris,

Head of Natural Resources.

“We do that by measuring environmental

performance on an ongoing basis, guiding and

supporting staff, working with suppliers and

sub-contractors to minimise their environ-

mental impacts and auditing and monitoring

operational and environmental risks.”

The bank is committed to supporting envi-

ronmental initiatives in society, the economy

and the business community.

In 2001, it worked with Certification Europe

(CE) and the Sustainable Energy Authority of

Ireland (SEAI) to implement an integrated En-

vironmental Management System (ISO14001)

to manage energy right across the organisation.

These activities range from sourcing energy

through to the purchase and operation of plant

and equipment and the day-to-day operation of

buildings. The initial focus for the programme

was the Bank of Ireland IT and Operations

Centre in Cabinteely.

The bank has implemented sophisticated

real-time metering and monitoring systems

across more than 300 buildings, allowing for

the benchmarking of optimal consumption of

electricity, gas and oil. This has significantly

reduced the impact on the environment.

In addition, Bank of Ireland has achieved

a 90pc waste recycling/reuse rate and has an

effective furniture recycling facility based in

Co. Wicklow.

Practising what theypreach with a cleanapproach to business

Emissions Trading Scheme.

This move has cemented the bank’s rep-

utation in Europe as an innovative player

in this important market – Bank of Ireland

designed the first emissions-related deriv-

ative product in 2006 and it continues to

create and deliver carbon-linked deposit

products for customers.

According to Harris, the willingness and

ability to constructively respond to policy

changes in the sustainability area has been

key for Bank of Ireland.

“The contribution to the Green IFSC

(now ISIC - International Sustainability

Investment Centre) – the public-private

initiative launched initially to foster the

development of green finance in Ireland –

As Head of Natural Resource Risk Man-

agement at Bank of Ireland Global

Markets, Paul Harris is immersed

in sustainability and how it applies

to business.

During his early career, he worked in a num-

ber of corporate and treasury banking roles

across London and Dublin, where he recognised

the emerging potential of environmental mar-

kets in a financial context.

His enthusiasm for this area was welcomed

at Bank of Ireland, establishing a domestic

carbon transactional capability.

Paul designed and transacted the first cor-

porate emissions-linked derivative, constructed

an award-winning UK carbon offset mortgage

and devised Ireland’s first carbon-linked in-

vestment product.

Working closely with Irish and international

businesses he creates and executes hedging

solutions for energy commodities and nurtures

Meetthe manwho’schangingmindsets

provides a prime example,” says Harris.

Since the inception of Green IFSC in

2010, Bank of Ireland has given solid

backing - including financial and intel-

lectual support - to the aims of the Green

IFSC in business, policy and employment

objectives.

Over the next five-year period, Bank of

Ireland will continue to support ISIC. “We

see it as a critically important feature of

Ireland’s economic recovery,” says Harris.

“We recognise the importance of emerging

opportunities. We are well-placed in areas

such as renewable energy, carbon emis-

sions trading and “green lending” to meet

the emerging challenges to help the coun-

try transition to a low carbon economy.”

practical, commercial knowledge on weather

derivatives, environmental bonds, forestry and

natural capital.

Over the last ten years, Paul has worked on

a number of tax changes centred round forest

carbon and served on a banking sub-committee

tasked with designing a financial model for

energy efficiency investment.

He was one of the principal architects of

Ireland’s Green IFSC initiative, established to

develop and foster the green finance capabilities

of the IFSC.

Paul holds a pivotal position on the Green

IFSC Working Group and Chair of the Expert

Carbon Group as well as Deputy Chair of the

Irish Forum for Natural Capital.

An advocate for further learning in this area,

he was instrumental in developing the postgrad-

uate Certificate in Sustainable Energy Finance

at DCU and writes extensively on natural capital

from an economic and financial perspective.

Bankof Ireland supports sustainable businesses including farming

Irish Independent I 11 June 2015

Ireland has established itself among theglobal leaders in this emerging market withover 650 firms operating in the sector. Andaccording to Enterprise Ireland, potentialfor growth is limitless.

Irish Independent I 11 June 201510 THE SMART FUTURE

So, justwhat is‘cleantech’?

Had you mentioned the ‘Green

Economy’ in Ireland a

couple of decades ago some

eyebrows would have been

raised and heads scratched.

But in recent years the cleantech sector

has exploded on our shores and with

potential for it to create 80,000 jobs and

boost GDP by €3.9 billion here by 2020,

it’s no wonder shrewd and environment

conscious entrepreneurs are seizing these

business opportunities with both hands.

The EY ‘Cleantech Ireland’ report, of

2012, pointed out that with clear Govern-

ment-backed focus Ireland could become

an international hub for the sector.

The Green Way - a body set up as

Dublin’s cleantech cluster with the aim to

stimulate economic growth and employ-

ment in the green economy, brought out

its own ‘Cleantech in Ireland 2014’ report

last year in which it pointed out how the

country is starting to embrace this emerg-

ing sector.

It told how Ireland was now ranked 5th

of 40 nations in the 2014 Global Cleantech

Innovation Index.

So what exactly is cleantech and how

can it impact on the lives of ordinary Irish

citizens?

The sector develops, produces and uses

goods and services that help us become

more resource-efficient. These can range

from greener energy generation to more

environmentally friendly transport

options and new efficient waste water

treatments.

There are around 650 companies op-

erating in the cleantech sector in Ireland

today giving employment to thousands.

Energy production and distribution

is the largest cleantech sector in Ireland

today followed closely by Energy efficien-

cy and management.

By the time our children run their own

households it’s believed the majority of

the energy they will use will be green.

Indeed cleantech will reach into every

facet of their lives - in many ways it

already does. For example a new genera-

tion see recycling as a normal task – the

thought of throwing plastic and paper

into general waste is nonsensical. And as

processes improve we, as a nation, will

become less wasteful and more conscious

of what happens with our rubbish.

Irish businesses can flourish as a re-

sult. One such Irish company is OxyMem

based in Athlone.

Founded in 2013 the company solves

energy intensive wastewater treatment

with what’s known as it’s Membrane Aer-

ated Biofilm Reactor (MABR).

OxyMem’s Managing Director Wayne

Byrne explains: “Conventional wastewa-

ter treatment, known as the Activated

Sludge process, consumes two to three

percent of a nation’s electricity produc-

tion. But we can achieve superior energy

performance over Conventional Activated

Sludge, with lower sludge production,

using less operator hours and by doing so

make a fourfold saving on energy costs.”

Last year the company opened its first

membrane manufacturing facility and

currently employs 42 people. OxyMem has

raised over €1.7M of equity to date.

A recent World Bank report estimated

the opportunity for water-focused clean

technologies at US$3.6trn (€3.2trn) in the

developing world alone.

And Wayne Byrne believes that con-

tinued focus on and investment in the

cleantech sector in Ireland can result in a

major economic boost for the country.

He said: “Cleantech is certainly

contributing significantly to Ireland’s

economic recovery year on year. I’m cer-

tain that there’s a very healthy innovation

pipeline in Irish higher education and

research institutions so we have great

potential for expanded growth in this

category for at least the next decade.”

A United Nations report estimates

that by 2050 some $36 trillion (or

€32.7trillion) will be invested in clean

technologies worldwide so it’s vital Ire-

land is to the forefront of this exciting

and developing business sector.

And government agencies such as

Enterprise Ireland are doing their bit to

assist new businesses in the sector who

come to them with innovative cleantech

inventions or service options – especially

those proposals which will transfer well

to the international market.

Tom Kelly, Divisional Manager for

Cleantech, Electronics and Lifesciences

with Enterprise Ireland explained the

huge potential for Irish companies in this

sector.

He said: “Ireland is uniquely positioned

to avail of the opportunities that global

cleantech markets present with excellent

natural resources in the form of renewa-

ble energy sources like wind, wave, and

tidal as well as developed research infra-

structure and a solid skills base.

He added: “At present, cleantech is

among Ireland’s fastest growing sectors.

We’re seeing that not only are more en-

trepreneurs and small business starting

up in this area but that longer-standing

companies are adapting their models

and now offering more energy-efficient

and sustainable products. The challenges

posed by climate change and a scarcity of

resources will require solutions and here

at Enterprise Ireland we’re trying to do

everything we can to help Irish business-

es to come up with those, develop them

and sell them across the world.”

Those involved in promoting and sup-

porting the entire cleantech sector believe

Ireland can rise to the challenge and

innovate, develop and export goods and

services to meet the demand of both the

markets and the peoples of the world.

The challenge is huge - but the op-

portunities in the cleantech sector are

vast and, to date, Irish businesses have

responded to the opportunity.

CLEANTECH

ISCERTAINLY

CONTRIBUTING

SIGNIFICANTLY

TOIRELAND’S

ECONOMICRECOVERY

YEARONYEAR

Graham Clifford

Agri SmartHi-tech farmers are hungry

for new technology, wheth-

er it’s self-driving tractors,

self-milking cows, aerial

drones to herd sheep, mobile

phone apps to alert owners when cows are

calving, or software that measures how fast

grass is growing,

With a vast array of gadgets already at

their fingertips, Irish farmers are proving

to be just as canny as their hi-tech hipster

cousins in Dublin’s Silicon Dock when it

comes to being early-adopters of technol-

ogy - and they are reaping the benefits in

terms of time-savings, cost-savings and

reduced environmental impact.

Insiders suggest the global agtech in-

dustry may be about to enjoy the agrarian

equivalent of a dot.com boom - with Ire-

land located at the epicentre of it.

Venture capitalists are pouring mon-

ey into agtech companies focused on

everything from big data to drone technol-

ogy and ‘virtual fences’ using GPS technolo-

gy and animal sensors.

Meanwhile, dozens of Irish companies

are spending millions of euro to create

the hardware or software to make farm-

land more productive and farming more

efficient.

The massive growth of agtech has turned

heads in Silicon Valley too: a two-day Sili-

con Valley Global Tech Summit organised

by the Irish Technology and Leadership

Group had a session called ‘The Agtech

Revolution: Reinventing the Farm’.

Experts believe Ireland is perfectly

poised to capitalise on the agtech boom

given our hi-tech talent pool and our ‘low-

tech’ farming expertise.

Agriculture is Ireland’s biggest indige-

nous sector, contributing €24bn to the Irish

economy annually, representing almost

10pc of all exports and nearly 8pc of all

employment.

The technology sector is responsible for

€72bn of Ireland’s exports - 40pc of the na-

tional total - and four of the top five export-

ers in Ireland are technology companies.

Teagasc - the agriculture and food devel-

opment agency - has just launched a new

initiative to focus on identifying the key

technologies that have the potential over

the next 20 years to drive the Irish agtech

sector.

One product that is likely to be a popular

fixture of the ‘farm of the future’ is a grass

measuring device being championed by

one Irish agtech entrepreneur.

Watching grass growmight not sound

like much of a job but Steve Lock is hoping

to become a millionaire from it. He is one

of the brains behind GrassOmeter, a new

device that measures grass growth and

which has received €1.4m in R&D funding

from the likes of Enterprise Ireland and

food giant Glanbia.

The GrassOmeter, which is about to be

launched on the market, is a mobile unit

that is operated via an app on the farmer’s

mobile phone. The phone’s GPS system

tracks the farmer’s movement as the farm

is measured and the results are uploaded to

the cloud. Measurements are also instantly

linked to weather and other data.

In a further sign of Silicon Valley’s em-

brace of agtech, the GrassOmeter device is

designed by legendary Apple designer Jerry

Manock - the man who helped design the

first Mac and is named on the Apple patent.

The GrassOmeter device is owned by

Mayo-based Monford AG systems and is

manufactured in Ashbourne, Co Meath.

Gerard Keenan, executive chairman of

agricultural specialist Keenan Systems,

says agtech is the future. Keenan’s is an

agricultural feed technology firm that has

annual turnover of €42m and exports to 50

countries.

“There is an emerging revolution going

on in Ireland right now,” he said. “There is a

lot of technology being developed, so right

now, you are getting the early adopters. But

you are soon going to see a bigger relevance

to much more farmers. That is just about to

happen.”

Keenan says cloud technology was the

tipping point that transformed the global

potential of agtech - and transformed his

business.

Carlow-headquartered Keenan Systems

has developed a standalone data manage-

ment site in Kilkenny employing expert

animal nutritionists to utilise the informa-

tion gathered by its machines on a daily

basis around the globe.

Keenan’s precision feeding technology is

used by many of Ireland’s top milk proces-

sors to help their farmer suppliers improve

milk composition through nutrition guided

technology.

Tech-savvy farmers know that software

and sensors that enable them to better col-

lect and interpret farm data will be key to

managing their operations more efficiently

and maximising profit.

Irish farming is in themiddleof a technological revolution.

Irish Independent I 11 June 2015

The clean technology industryis dominated by innovative, agileenterprises that aremaking astrong impact across the globe.Herewe look at some of the 640Irish companies involved in thecleantech area and the 10mainareas they operate in, from energyefficiency towastewater and air.

Irish Independent I 11 June 201512 THE SMART FUTURE

1. Energy Production & Distribution› Gaelectric is a renewable energy group centered on four core areasof project development and operation in renewable energy on-

shorewind; off-shorewind development; biomass solutions; and

energy storage systems successfully partneringwith companies

such as Tesla Energy.

› Mainstream Renewable Power is the largest independent

renewable energy power company generating, developing,

financing, constructing and operating large-scale renewable

energy plant for global consumer brands like IKEA, utilities and

investment companies.

› BNRG Renewables operating globally specialize in utility-scale

solar PV projects completing projects in a successful manner

making them suitable investments for institutional and pension

funds.

› OpenHydro designs and

manufactures marine

turbines to generate

renewable energy from

tidal streams.

› Power Capital focuses on

sustainable energy global

investments, mainly

photovoltaics but alsowind.

› Exergyn has developed

world-leading technology

that converts low-grade

waste heat to electrical or

mechanical power.

2. Energy Efficiency & Management› Cylon is an international leader in Building EnergyManagement

Systems, deploying technology solutions around the world.

› Frontline Energy, an innovative Irish Energy Services company,

delivers district heating and smart energymanagement solutions

across Ireland and the UK.

› SELC, a global leader in street lighting, pioneered the global

expansion of SMART dimmable electronic ballasts, created

long-life photocells, and innovative solar time switches.

› FenestraPro provides a cloud-based software tool for architects

to optimise design of non-domestic building facades in the early

stages.

3. Waste› SmartBin provides intelligent monitoring solutions for many

types of remotewaste container assets. It is revolutionising how

waste and recycling companies across the globe can service their

remote assets.

4. Energy Storage› Dublin-based REDT is leading the way with its Energy Storage

Vanadium-Redox storage systems.

› Glen Dimplex, the world’s largest manufacturer of electrical

heating, is enabling energy storage at domestic level through

its Smart Energy Thermal Storage Solutions (SETS), such as

the Quantum storage heater.

5. Transport› Traditional utility companies such as ESB are driving innovation.

ESB is deploying electric vehicle (EV) charging infrastructure as

part of their E-car programme.

› Complementing this are companies such as M2C, a leading

developer of EV charging technology.

› Bord Gáis Networks is beginning to develop infrastructure for

compressed natural gas (CNG) as a fuel of choice for Irish fleets,

ultimately supporting lower emissions.

7. Cleanweb› Innovative companies such as Liberator Aero harness the power

of the web and data analytics to drive resource efficiencies in

transportation.

› Hanley Energy specialises in the design, installation and support

of energymanagement and critical power solutions for industry.

8 Agriculture & Forestry› Coillte Enterprise is leveraging the state’s national forests to

deliver innovative sustainable product and services frombiomass

towood panels, aswell as the development of renewable energy

projects.

› Compass Informatics applies core technology & GIS skills to

a wide range of sectors including land, water and planning, and

operates Ireland’s National Biodiversity Data Centre.

9. Air› CarbonControl has received global recognition for its innovativesoftware and Carbon Control Market.

10. Clean Industry› CubeCleantech is leading the charge in the clean industry sector,delivering sustainable laboratories and research environments,

from design to delivery phases.

Bright futurefor the Irish firmsdriving innovation

6. Water› OxyMem is revolutionising thewastewater industry globallywith

its smart aeration technology, which allowsmuchmore energy-

efficient treatment of wastewater.

› Butler Manufacturing Services, a manufacturing and R&D

company, specialising in prefabricated wastewater treatment

and surface water solutions for global application.

Irish Independent I 11 June 2015

Investors like Irelandbecause of our vastasset and fund expertise,saysMartha Kearns

Irish Independent I 11 June 201514 THE SMART FUTURE

Investmentopportunitiesand expertise:

Climate change and a global

demand for scarce resources

like water and food is leading

to a boom in investment in

sustainable businesses and

Ireland is at the forefront of the movement.

A virtuous circle has developed in the

sustainability sector - with the growth of

new businesses and the desire for invest-

ment in these enterprises feeding off each

other.

Governments and businesses all over

the world must now adhere to stricter

regulations in order to reach sustainability

requirements. Springing up around these

needs are new businesses and exciting

technologies in order to service both the

public and private sectors’ need to meet

their requirements.

And all these new businesses - who are

striving towards excellency in the sustaina-

bility field - need investment and capital.

Sowho is going to invest?

Investors around the world are looking for

new opportunities and sustainable finance

looks like it could just be that next big

thing.

Global investors, including institutional

money, pension funds, life assurance mon-

ey and insurance companies, are looking

for alternative asset classes in which to

invest.

There are a number of reasons for this –

not least the knock-on effects of the global

economic crisis.

Investors were burned by property,

equity, bonds and other investments and

are looking for more secure investment

opportunities, at a time when the world is

inevitably, because it must, transitioning

to a low-carbon economy.

They are looking for asset classes

that will produce an annual income, are

long-term, stable and relatively certain in

outlook and are not necessarily correlated

to the wider financial market.

They also want diversification in their

portfolio and there is a genuine interest in

‘being green’.

This has all led to capital increasingly

being diverted away from carbon-intensive

industries and towards renewables and

energy efficient technology.

In 2014, some $310 billion was invest-

ed in clean energy and the ‘green bond’

market globally trebled in size in 2014 to

$35 billion.

Why Ireland?

Most of the investors in sustainability are

based in regions such as the US, Canada,

Germany, the UK and Scandinavia. So, it

may surprise some to find that Ireland is

at the forefront of the movement.

This is because Ireland has already built

up a credible reputation as a world leader

in the area, which includes investment in

the building of physical renewable energy

plants on a global scale as well as the man-

aging of environmental assets.

Ireland has one of the most sophisticat-

ed investment management industries in

the world with expertise in fund servicing,

administration and asset management.

The country is currently servicing more

than €3 trillion in its wider funds indus-

try - and growing - showing it is punching

well above its weight globally.

It is the number one hedge fund centre

in the world looking after more than 40pc

of the globe’s assets.

There is a body of professionals in

Ireland who have been working in the

industry for the last 20 years and have the

necessary knowledge and expertise to sup-

port the investment activity of these funds.

Irish companies, organisations and

people have the expert know-how to man-

age, service and deploy funds investing in

sustainable industries: the country has an

unequalled talent pool in this area putting

Ireland ahead of the curve in these sectors.

The country also has well-developed

and regulated services - including legis-

lation, regulatory and tax - in this area

which is a major attraction for investors.

Ireland has a thriving sustainability

sector and Irish companies have been

leading the way in developing renewables,

food and other sustainable projects on a

global scale.

It also has the potential to produce vast

amounts of renewable energy, given Ire-

land’s abundant resources of wind, wave,

tidal and solar power. The combination of

the expertise in both sustainability enter-

prise and investment management has led

to Ireland becoming the centre of choice

for the establishment of green funds.

And it’s a sector that will grow signif-

icantly in the coming years as the world

moves towards a better understanding of

how to preserve our resources.

IN 2014, SOME$310BILLIONWASINVESTED INCLEANENERGYANDTHE‘GREENBOND’MARKETGLOBALLYTREBLED INSIZE IN2014TO$35BILLION

why Ireland is a solidbet for sustainable funds

Rich rewards

in renewablesIrish companies have been leading

the way in developing renewable, food

and other sustainable projects on a

global scale.

Ireland also has one of the

most sophisticated investment

management industries in the

world with expertise in fund

servicing, administration and asset

management.

The combination of the expertise

in both sustainability enterprise and

investment management has led to

Ireland rapidly becoming a centre

of choice for the management,

deployment and servicing of

environmental funds.

With an unequalled talent pool and

expertise in sustainability investment,

Ireland is ahead of the curve in these

sectors.

A snapshot of financing and

investment players operating in the

area of sustainability investment

includes Bank of Ireland, AIB, Nord,

Ulster Bank and Barclays.

OTHERKEYPLAYERS INCLUDE:

Irish Strategic Investment Fund – a

multi-billion euro fund established in

December 2014 with a statutory mandate

to invest on a commercial basis in

support of Irish economic activity and

employment.

Blackrock Renewable Power – renewable

power investment business with a

dedicated and industry experienced

renewable power team and business unit

headquartered in Dublin.

Greencoat Capital – managing the ESB

€200 million private equity Novusmodus

fund providing growth capital and

management support to operating

companies across the energy efficiency,

resource efficiency, and renewable energy

sectors.

Amarenco Solar – established in mid-2013

and focused on long-term utility scale

solar PV infrastructure assets in France

and Ireland, Amarenco Solar has over

€100 million under management.

SDCL Ireland – managing Ireland’s €70

million energy efficiency fund.

Brookfield Renewable – one of Canada’s

largest infrastructure firms, has made a

major push into Europe with the purchase

of 17 Irish wind-energy projects worth an

estimated €700 million including the Bord

Gais wind portfolio.

BVP Investments – an early stage investor

in green businesses.

MainstreamRenewable Power –

developing, financing, constructing and

operating large-scale renewable energy

plant, a recent venture is a $1.9bn pan-

African renewable energy platform with

Actis.

NTRPlc – renewable energy investments

with a particular focus on wind energy in

Ireland and the UK.

Kleinwort Benson Investors (KBI) –

since 2000 KBI have been pioneering

environmental investment strategies and

were one of the first investment firms

globally to launch separate Water and

Renewable Energy Funds, a product line-

up that now includes Agribusiness and

Cleaner Solutions.

BNRGRenewables – developing and

constructing international utility scale

solar PV parks for placement with pension

funds and institutional investors.

Gaelectric – developing, financing and

integrating wind energy, biomass and

energy storage in Europe and North

America, recently announced with Tesla

Energy a collaboration to demonstrate first

battery power utility-scale project in Ireland.

COILLTE’SROLE

INRENEWABLES

IN IRELAND IS

FARREACHING

Irish Independent I 11 June 2015Irish Independent I 11 June 201516 THE SMART FUTURE

Coillte is Ireland’s national for-

estry company, the country’s

largest manager of our natu-

ral resources with responsibil-

ity for over 445,000 hectares

- a huge 7pc of Ireland’s entire landmass.

The company’s estate is at the heart of a

very successful and highly profitable trade

in products that come from forest timber.

Coillte supports that sector through

the sustainable management of 50pc of

Ireland’s commercial forests. It is also

involved in the manufacture and export

of sustainable wood panels for a range of

construction and other uses in the UK and

other international markets.

Mark Foley, the Managing Director of

Coillte Enterprise points to the pivotal role

of Coillte in the development of a vibrant

renewable energy sector in Ireland over

the last 20 years through the deployment

of Coillte-managed assets, managed in a

way that complements the core forestry

business.

“Coillte’s role in renewables in Ireland is

far reaching,” says Foley.

“We have enabled around 40pc of

current installed wind generation capacity

through the provision of high-quality sites

and rights of way to third-party developers

in support of the industry’s achievement of

over 2,000 MW of built capacity at the end

of 2014.

“The industry will deliver a further

1,600-1800 MW of generating capacity

up to the end of 2018 which will ensure

that Ireland’s target for electricity from

renewable energy sources of 40pc, is met

by 2020.”

Coillte, in conjunction with its partners,

will deliver 330MW of generating capacity

across six counties in Ireland over the next

three years, and will support another 400

MW through the supply of sites to third

parties in this timeframe.

In the period to 2020, Ireland is expect-

ed to lead the way in terms of the ability

of the grid to accommodate renewables,

rising from current levels of 50pc to as

high as 70pc in the next decade.

“The success of wind energy in Ireland

can be attributed to 3 factors,” says Foley.

These are:

1. The existence of viable incentive re-

gimes, past and present, including the

current REFIT 2.

2. The fact that Ireland’s planning environ-

ment strikes a delicate balance between

national policy, the aspirations of the

developer and the protection of both

the environment and the community in

which the development is proposed.

3. Strong technical and supply chain capa-

bilities within the indigenous economy

which have a proven record in delivering

renewable energy projects of scale.

Foley says, however, that the story with

Renewable Heat (RES-H) and Transport

(RES-T) targets is less positive.

Ireland will at best achieve 8 to 9pc by

2020, significantly short of the target of

12pc and transport will also fall short of its

own target of 10pc.

The net result for Ireland will be costly

in terms of penalties emanating from

Europe.

In contrast, Britain has made enormous

progress in respect of RES-H, primarily

due to the launch of a Renewable Heat

Incentive (RHI) in 2010.

“Ireland needs to act now and introduce

its own RHI if any impact is to be made on

Ireland’s trajectory to 2020,” says Foley.

As we look to the world after the year

2020, he says the case for renewables

becomes more and more compelling: wind

energy drives down the wholesale price

of electricity, it reduces dependence on

imported carbon intensive fuels, it helps

mitigate the impacts of climate change

and the fuel is in abundance here in north

western Europe.

Foley adds: “We are at a critical stage in

terms of Ireland’s energy future.

“Policy decisions which underpin the

next White Paper on energy will have far

reaching consequences for our future.”

“Our ambition for 2030 will be set in

the medium term and this ambition will

determine whether Ireland’s place in Eu-

rope is as a benign follower or whether we

are prepared to step up, take control of our

own destiny and provide leadership.

“That would be in placing Ireland as a

shining example of how a peripheral na-

tion can move from a dependency culture

to one of energy independence, competi-

tiveness and responsible leadership on the

matter of climate change.”

Coillte:the cutting edgeof our energy future

The State forestrycompany is playinga starring role in thedevelopment of ourrenewable energy plans.

Our d ta nationVast data centres belonging to the

biggest names in world tech are

becoming increasingly common

in Ireland.

Companies includung Microsoft, Google

and Digital Reality have already estab-

lished centres in the country, creating

hundreds of jobs along the way.

So when Apple announced last February

that they too would be taking the plunge,

it was another vote of confidence in our

ability to deliver on cleantech infrastruc-

ture.

More than 300 new jobs are expected to

be created through the Apple development

including 100 permanent positions once

the facility is complete.

But why did Apple decide to add to their

Irish facilities (Apple’s European head-

quarters is based in Cork), and even more

so, why Athenry, Co Galway?

Ireland has the edge over a lot of

countries environmentally, and that is why

more and more of these US companies are

setting up base here.

Data centres are hugely power hungry

and are best located in temperate-neutral

climates.

Less power is needed in cooler climates

for air conditioning and temperature

control systems, so locating in Ireland can

literally be a power saver.

Apple’s 166,000-sq-metre centre will be

built on a Coillte-owned greenfield site at

Derrydonnell.

The company say that this site will be

run entirely on renewable energy and also

that it will “work with local partners to

develop new renewable energy projects

from wind or other sources to power the

data centres”.

They promise to restore native trees in

the forest and recover lands that were

previously used for growing and harvest-

ing non-native trees.

Apple’s decision to set up a data centre

in Galway also accompanies a decision

they took to set one up in Denmark’s

central Jutland region.

Costing €900m, Apple’s Athenry base

will power online services including the

iTunes Store, the App Store, iMessage,

Maps and Siri for European customers.

Eleanor Kennedy

Our d ta nation

Irish Independent I 11 June 2015Irish Independent I 11 June 201518 THE SMART FUTURE

Futureproof:city council plots a

newpath for Dublin

DUBLIN isn’t like other

cities. To the north, large

tracts of housing sit beside

the Bull Island nature

reserve, while to the south,

swimmers bathe in pristine

waters on blue flag beaches.

A nature park in Ringsend sits beside a

wastewater treatment plant and a waste to

energy plant which is under construction,

while the capital boasts one of the largest

urban parks in Europe, the Phoenix Park.

It’s that mix which the capital should be

cashing in on, says Dublin City Council’s

Green Business Officer Mark Bennett,

showcasing how a large urban centre can

also have amenities unheard of in other

major cities.

Given that Ireland already enjoys a

reputation as a ‘green’ nation, the idea of

making Dublin into among the most sus-

tainable cities on the planet “makes sense”.

“But we need to start making targets,”

he warns. “Vancouver plans to be the most

sustainable city on the planet, and Copen-

hagen has a zero carbon approach.

“Dublin City Council was the first to

do a sustainability report, five years ago,

which evolved to include social and eco-

nomic indicators. It captured what the city

authority was responsible for, including

the well-being of citizens which is vitally

important.

“But there’s no need to reinvent the

wheel. We should look towards the high

performing cities and replicate their suc-

cess. That leadership has come to the fore.”

Making the city more sustainable and

reducing its carbon footprint involves us-

ing existing technologies for services like

housing and waste, as well as tapping into

new ones. Much of the heavy lifting has

already been done.

That includes planning flood defences,

and retrofitting social housing, as has

happened in York Street. The Dublin Port

Tunnel has taken HGVs out of the city,

while investment in cycling infrastructure

has grown numbers by more than 14pc

year-on-year. Pedestrian traffic is also on

the rise, and the city is a more pleasant

place to stroll around.

In addition, street lights are being up-

graded to be more efficient and cheaper to

operate, while Fr Collins Park in Donagh-

mede uses wind power for public lighting

and electricity in sporting clubs.

The council is also involved in a project

to install solar panels on the civic offices

and some libraries, and hopes that they

will become more common over time.

But Bennett sees the city’s role as more

than just improving the services it over-

sees.

A key driver is working with compa-

nies to develop new technologies, and to

facilitate networking between SMEs and

multi-nationals.

“One thing which is very exciting is

working with other actors. It used be that

you had to know what technology you

wanted before you’d procure it. That’s

changed. We now state the issue, and in-

vite companies to work with us to see how

the city is run.”

Those partners include Intel which

is doing work on sensors across the city,

allowing the council to better manage

public infrastructure and to understand

how people move around the city; Arup is

working on more efficient street lighting,

IBM has its Smart Cities initiative which

amongst other issues looks at traffic.

“We have a smart cities focus and we

want companies to come here to innovate

their services. We would say here are the

challenges, and here’s what we’re willing

to put in - staff or investment, for example,

because if it’s in our interests we’re not

afraid to co-invest.

“We’ve worked with a lot marquee

names, but we’re also working with

smaller, indigenous providers. If you have

international companies with internation-

al networks, and introduce them to small

companies, they can piggyback on each

other.

“We’re like a broker. We’re networking

and we have an Economic Development

Office, so it rounds out our role in the city.”

“If you’re talking about the war for

talent, this matters,” he adds.

He says The Green Way initiative is

one way to bring that expertise together.

Established in 2010 as Dublin’s cleantech

cluster, its founding members include the

Dublin Airport Authority, universities, two

local authorities and the North Dublin

Chamber of Commerce.

The development of the Docklands will

show how buildings can be constructed to

the highest standards, while the roll-out

of electric vehicles (EVs) will also reduce

emissions and improve air quality. But

there is a problem with supply.

“They’re not all making it to Ireland be-

cause they’re being bought by the Nordics.

They have all the oil under the sun but are

moving fastest on decarbonising.”

There is no reason why composters

could not be made available in local

communities to convert food waste into

compost for allotments and gardens, he

says. Irish people are already among the

best recyclers in the world, and there’s no

reason why behaviours cannot change.

“It’s about leadership. If you get the

right people to come together to unite be-

hind an agenda, it’s very doable. We have

all the assets in place from big infrastruc-

ture, to community projects, to companies

big and small. We’re just missing the

targets and ambition.

“Government has a role too. Cities are

going to be leaders of change. Dublin

could raise its profile in a way that would

help sell Ireland Inc. We are the Green

State, but others are stealing a march on

us because we haven’t staked our claim.”

By Paul Melia

WEHAVEASMART

CITIESFOCUS

ANDWEWANT

COMPANIESTOCOME

HERETO INNOVATE

THEIRSERVICES

Solar authority: Dublin City Council’s rooftop solar panels

DCChopes to seemore e-cars

11 June 2015 I Irish Independent11 June 2015 I Irish Independent THE SMART FUTURE 19

A view at DCUD

UBLIN City University’s (DCU) In-

novation Campus on Glasnevin Hill

has come a long way since it opened

for business in early 2014. The campus site

was first established in 1946 as the Insti-

tute of Industrial Research and Standards

and was home to Enterprise Ireland, the

SEAI and the NSAI until 2008.

For over 60 years the site functioned

to encourage scientific research in areas

such as timber technologies, construction

materials and plastics innovation.

Today, says executive director Ronan

Furlong, the 10-acre site is being re-pur-

posed to accommodate and foster the

next generation of technologies. Some 30

companies have already established on site

over the last year, employing around 300

staff, and working on projects as diverse as

renewable energy, sensor technology and

3D printing.

Interestingly, this high-tech cluster is

not your usual digital incubator environ-

ment. “As well as office space, we have

industrial workshops and laboratory

buildings. Big spaces where people can

prototype new hardware alongside modern

offices. Here’s where you’ll see people

in t-shirts coding software for start-ups,

researchers in white coats at work in bio

labs and engineers in orange boiler suits

assembling physical devices – all adjacent

to each other.”

The campus includes some 200,000 sq

feet of mixed office, industrial and research

space in total. The tenant companies are

a mix of indigenous SMEs and big mul-

tinationals like French company Veoila

(which focuses on water, waste and energy

services) and Siemens, who recently moved

their Irish HQ operations to the site.

While the multinational companies

of scale such as Veolia and Siemens are

looking to innovate, there is a long list of

innovative domestic companies looking

to scale, and DCU is helping them in that

process by giving them access to talent,

assisting with research and hooking them

into the cleantech market, through its own

contact network.

Those innovative companies include

Exergyn, which is developing a waste heat

recovery engine, based on novel ‘shape

memory alloy’ technology, which will help

improve the energy efficiency of large elec-

tricity generating plants.

Other start-ups include Urban Volt,

which offers LED ‘lighting as a service’ un-

der a no-money-down ESCo model to large

firms or local authorities, and Ambisense

which produces an environmental sensing

technology platform which can, among

other things, monitor gas leakage from a

landfill.

“Our initial tenant focus was on

cleantech companies, but our definition

was always quite broad in terms of data,

sensors, wearable devices and other cross

cutting technologies,” says Furlong. The

health sector is therefore represented,

with Shimmer Sensing which has created a

biometric wearable device which monitors

the performance and vital signs of elite

athletes. Anyone who has ever wondered

about the small rectangular shape stitched

into the back of Paul O’Connell’s shirt, can

now rest easy.

3D printing is another area which the

University is focusing on. The confluence

of 3D printing, low cost sensors, crowd-

funding and open source data is leading

to an explosion of connected hardware

innovation focused around the ‘Internet of

Things’, which will have huge ramifications

in the sustainability sector over the coming

years. We are already starting to see this

with connected devices such as Google’s

‘Nest’ and the energy control devices being

developed by another Innovation Campus

company ResourceKraft.

“Dublin is synonymous with being the

internet capital of Europe, but if you think

the internet revolution was big, you’ve

got to remember that it was only a screen

based revolution. Wait until you see the

next phase, when we start connecting all

the things. Big players like GE and Cisco

are talking about 10-20 trillion connected

devices by 2020,” Furlong says.

“That’s moving beyond laptop and smart

phone screens, and into energy, water,

transport and food. It’s about sensors and

data and companies looking to bridge

the physical and digital worlds. One such

example of this was the recent ‘Beef Hacka-

thon’ on the Innovation Campus with ABP

Food Group and Intel, where we brought

the connected hardware innovation com-

munity together over a weekend to look

at how the beef sector would be impacted

by this Internet of Things revolution. The

three winning projects that emerged from

that event are now being deployed on a

trial basis by ABP – in areas of energy,

transport and waste.

“The secret sauce of the innovation

campus is that we look to add firms which

bring value to the emerging cluster itself,

and who are capable of, and interested in,

leveraging off the research capabilities of

DCU. We’re not solely about bricks and

mortar space solutions for companies.”

education3D3D