However changes in climate can also bring opportunities as well as risks to Irish businesses, according to a new report, 'Adaptation to Climate Change: Issues for Business', published by Forfás.
Martin Shanahan, Chief Executive of Forfás said: "Given that Ireland is expected to be relatively less affected by climate change than our key competitor countries, properly managed, Ireland can have competitive advantages through access to significant water resources and an ongoing temperate climate.
"This can present opportunities for indigenous companies to realise these competitive advantages and to promote Ireland as a relatively low risk location for business activity.
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"The key now is to facilitate Irish businesses in planning ahead so that they can minimise risks, reduce costs and realise opportunities arising from climate change adaptation. Building awareness and capacity among businesses through supports from business representative bodies, enterprise development agencies and other stakeholders will be central to ensuring successful business adaptation in Ireland."
The Minister for Enterprise, Trade and Innovation, Batt O'Keeffe TD, said the report uncovered strong business opportunities for Irish firms which the Government's enterprise agencies should now target.
"Our adaptation to climate change presents domestic and international opportunities for Irish businesses across a range of sectors. For example, making new and existing buildings and infrastructure more climate-resilient presents opportunities for the construction sector while increases in global food demand due to global climate challenges can boost our agri-food sector.
"The challenge for the Government and our enterprise agencies is to help turn these new business opportunities into jobs as Ireland's economy emerges from recession and returns to growth."
The report highlights that without proper planning there could be significant costs associated with climate change to both businesses and the economy and points to the November 2009 floods, which resulted in infrastructure damage, property damage, poor water quality, power outages and the inability of workers to access work, as an example of the potential vulnerabilities. Insurance costs for the November floods totalled €244 million.
(CD/BMcC)
