As the clock ticks towards the 2030 emissions reduction targets, a new wave of concern is sweeping through UK and Irish businesses.
A recent survey reveals that one in three companies fear they won’t meet their decarbonisation goals, citing budget constraints and infrastructure challenges as major road blocks. These concerns highlight a pressing need for strategic action and government support if the region is to stay on track with its climate commitments.
The cost of going green
Nearly half (46%) of the businesses surveyed pointed to limited budgets as the biggest barrier to reducing emissions. Amidst rising energy costs, inflation, and economic uncertainty, sustainability initiatives are often seen as a ‘nice-to-have’ rather than a necessity.
The upfront costs associated with low-carbon technologies, such as electric vehicle fleets, renewable energy systems, and retrofitting buildings can be daunting, especially for SMEs.
However, this short-term financial pain must be weighed against the long-term benefits. Businesses that fail to invest in decarbonisation risk falling behind on compliance, missing out on funding opportunities, and facing reputational damage as customers and investors increasingly demand climate-conscious practices.
Infrastructure and energy resilience: A double challenge
Equally troubling is the fact that 46% of businesses identified energy security and resilience as a substantial risk to operations. The current energy infrastructure in both the UK and Ireland is under strain, with ageing grids and inconsistent access to renewable sources posing serious challenges.
For many companies, the fear is not only that the transition to clean energy will be expensive, but that it may also be unreliable in the near term.
Without significant upgrades to national infrastructure—, such as expanding grid capacity, improving battery storage, and ensuring consistent renewable supply, businesses will struggle to decarbonise operations effectively or confidently.
Pathways to progress: Strategies for meeting 2030 goals
Despite these challenges, there are practical strategies businesses can implement to improve their chances of hitting 2030 targets:
- Energy efficiency - Improving energy efficiency is often the most cost-effective step. Simple measures such as upgrading insulation, optimising HVAC systems, and switching to LED lighting can result in significant emissions reductions and cost savings.
- Access green financing - Government grants, green loans, and tax incentives are available to support sustainability investments. Businesses should actively seek these out and consider partnerships with financial institutions that offer tailored sustainability funding.
- Adopt a phased approach - Rather than overhauling systems all at once, companies can benefit from a phased strategy. Starting with small-scale projects can build momentum, demonstrate ROI, and help secure additional funding or stakeholder buy-in for larger initiatives
- Invest in on-site renewable generation - Installing solar panels or small wind turbines can reduce dependence on external energy providers and improve energy resilience. While upfront costs remain a barrier, the long-term savings and improved autonomy are compelling advantages.
- Collaborate and share resources - Businesses can benefit from collaboration within industry sectors, sharing resources, best practices, and technologies. Group procurement or energy-sharing schemes can reduce costs and improve access to greener solutions.
- Measure, monitor and report - Establishing a robust system for tracking emissions and energy use helps identify areas for improvement and ensures transparency. It also supports alignment with regulatory and investor expectations.
The role of policy and government support
While individual business efforts are critical, systemic change will only come with stronger policy frameworks and investment in national infrastructure. Government must act swiftly to:
- Improve grid infrastructure and support decentralised energy production.
- Increase funding for SME decarbonisation.
- Enforce clear, long-term climate regulations that provide business certainty.
The message from UK and Irish businesses is clear: the road to 2030 is fraught with financial and infrastructural challenges. But with the right mix of policy support, strategic investment, and collaborative action, these obstacles can be overcome. The alternative, not meeting our climate goals is not an option the planet can afford.
By taking bold, incremental steps today, businesses can build a more resilient, sustainable, and competitive future, one that meets the demands of customers, investors, and the climate alike.
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