Waterford’s Commercial Rate Energy Discount Reduces Emissions in Businesses

By project ClimateGO

Published on 20 March 2025

Ireland

Southern

Waterford

About this good practice

A baseline emissions inventory of Waterford City in 2021 showed that businesses were the largest source of emissions in the city, 44% of emissions. Many of these are small businesses that struggle to find the time or capital to invest in changes that would make their business more sustainable. There is a need to engage small businesses to ensure we can meet our target of reducing the emissions per person in the city by 60% by 2030.
While the Council has control over emissions in relation to the buildings and roads we operate, the ability to reduce emissions within business was less clear. As a Council we had only one tool we could use to encourage a change to more sustainable business practices, rates. The Council decided to forego a percentage of the rates that could be collected allowing businesses who are trying to be more sustainable to hold onto that money and to continue to make improvements that will save their business money while reducing their carbon footprint. This is the only scheme of its kind in Ireland, and it was approved by elected officials in Waterford City and County Council.
In 2022 over 1000 SME’s completed training to avail of the scheme. In 2023 900 SME’s completed energy audits and assessments. In 2024 1000 SME’s measured their footprint and set out the actions that they will take to reduce emissions. The discount in 2025 will only be given to those businesses who have achieved their goal. Advice and support is provided to all SME’s in the scheme.

Expert opinion

To tackle climate change, the European Parliament adopted the European Climate Law, which raises the EU’s target of reducing net greenhouse gas emissions at least 55% by 2030 and makes climate neutrality by 2050 legally binding. The Climate Law is part of the European Green Deal, the EU’s roadmap towards climate neutrality. Reducing emissions in the business sector is a big part of reaching the EU targets. The scheme presented in this good practice provides businesses with the support, funding and training they need to reduce their emissions. This is very helpful especially to SMEs, who don’t have the means to dedicated vast resources to sustainability. This practice can be of interest to other cities in the EU, who wish to improve energy efficiency in their business sector.

Magda Michaliková

Works at Interreg Europe Policy Learning Platform

Resources needed

No external funding was required for this project to date, the Council’s Climate, Rates and Communication teams worked to deliver this project.
All processing of applications for the discount have been completed using the Council's online portal.

Evidence of success

Over 1,000 businesses are working towards set climate goals in Waterford, they are being rewarding for their progress, and we can measure the impact. We see the impact in our Business Ambassadors, companies who have been the face of this campaign. The Rates scheme has allowed these businesses and many more to invest in the staff, the systems and the technology that helps them to reduce their carbon footprint. SMEs have all they need to sustainable shared with them by the Council’s Climate Team.

Potential for learning or transfer

Small businesses struggle to invest or dedicate time to saving energy and reducing emissions. This scheme provides businesses with the support, funding and training they need to reduce their emissions. Tying sustainability to business rates has given businesses in Waterford the opportunity to make their business more sustainable, no matter what their industry. All applications were processed online and the Climate Team in the Council have built a relationship with the businesses in our city.