In its response to the Department of Agriculture, Environment and Rural Affairs (DAERA) consultation on the draft Climate Action Plan 2023–2027, the Institute stressed that while larger companies often have the resources to make sustainability improvements, SMEs face unique barriers such as limited finance, skills and time.
The Institute is urging government to provide timely grants and practical incentives so SMEs can modernise systems and benefit from lower energy costs, greater efficiency, competitiveness and access to finance. It also called for simpler administration, warning that excessive “red tape” diverts smaller firms from meaningful climate action.
Susan Rossney, Sustainability Advocacy Manager with Chartered Accountants Ireland, said: “SMEs make up the backbone of Northern Ireland’s economy and have enormous potential to contribute to net zero — but they need the right support at the right time. Incentives such as energy grants, simpler funding applications and reduced Climate Change Levy payments could make a real difference.”
The Institute also recommends that receipts from the Climate Change Levy be ring-fenced for climate and nature projects, ensuring transparency and fairness. Better data on SME emissions is also highlighted as essential to designing effective policies.
Welcoming commitments to protect biodiversity, the Institute emphasised that climate and nature goals must be pursued together, with nature-based solutions placed at the heart of delivery.
“With the right supports and incentives, particularly for SMEs, Northern Ireland’s Climate Action Plan can provide a fair and transparent pathway to a net zero, nature-positive economy,” Susan Rossney added.