Ibec urges government action to meet Ireland's infrastructure goals

It is unlikely that private investors will assume the high cost and risk associated with early sustainable aviation fuel industrialisation without Government support.

Unlocking further private capital will be essential in order to meet national infrastructure priorities.

A new report from industry body Ibec has highlighted the contribution the private sector already makes to the key infrastructure development across the country.

Ibec's 'Dig a Little Deeper' report highlights sectors such as telecommunications, which invest more than €700m annually in digital networks. In energy, annual expenditure of €4.17bn is required for renewable targets, with the transition potentially costing €200bn over 25 years, mostly mobilised by private firms.

This report highlights the scale of private capital already underpinning Ireland’s infrastructure and the urgent need to unlock further capital to meet national priorities, many of which were outlined in last week’s Accelerating Infrastructure Taskforce Report. 

"Investment in essential enabling infrastructure- be it energy, telecoms, transport, health, environmental, or other critical services-often led by the private sector," Fergal O’Brien, Ibec's Executive Director of Lobbying and Influence, said.

"If these companies were absent or unable to secure new investment, these projects simply would not happen."

The report gives the example of Sustainable Aviation Fuel (SAF), the requirement for which is expected to cost Ireland €2.85bn by 2050. Ireland is capable of domestic production and exports, but Ibec said that without government intervention, it is unlikely that private investors will assume the high cost and risk associated with early SAF industrialisation.

The report recommends a series of actions to unlock and attract further private investment. These include establishing a forum for private providers, rebalancing planning appeals, unifying fragmented systems, prioritising transparency, and creating an attractive investment climate.

"We are calling on Government to send out a strong signal internationally that Ireland is open for business from an infrastructure delivery perspective and to work closely with private sector infrastructure firms to ensure delivery challenges are addressed," Mr O'Brien said.