For its part the Irish Government has set the first transition target pathways for various sectors, as the whole economy transitions to meet a 51% reduction in emissions by 2030 and to become carbon neutral by 2050.13 While these different pathways will of course impact the financial system as it serves these sectors, the financial sector also has a positive role to play in helping households and businesses make this transition – with significant private sector financing needed in addition to public sector investment.
Again, there is a role for regulators and legislators to foster this opportunity – and as you all know, the last years have seen a huge amount of work in this regard. But what might have started as something led by policy makers has shifted into something now driven by real investor demand.