Climate watchdog points to need for urgent change of course on data centres and LNG

Climate Change Advisory Council’s review of electricity sector confronts the inadequacy of recent CRU proposed decision on data centres and expresses “serious concerns” with LNG.

Reacting to the report [1] published yesterday by the Climate Change Advisory Council Friends of the Earth’s Climate Policy Campaigner, Seán McLoughlin, said:

“The message from the Council’s review is clear: we simply cannot afford to allow fossil-powered data centres and LNG to derail climate action. This report confronts the clear inadequacy of recent decisions on climate and energy security by both the Government and the energy regulator.

The review is critical of the recent CRU proposed decision on data centres noting that the CRU’s contention that it cannot require emissions reductions leaves ‘an open door’ for this polluting industry to ramp up its use of fossil fuels. It also recommends new data centre demand is entirely met by renewable generation given the risk of increasing pollution which will undermine climate obligations. In light of this ‘open door’, the Council calls for the Government to strengthen the legal mandates of public bodies to ensure they act in accordance with climate objectives [2]. 

Friends of the Earth is calling on Government to halt the approval of new data centres until an appropriate policy regime in line with both these recommendations and with climate obligations is introduced. 

We also strongly welcome the Council’s clear recommendation that the strategy of public bodies like Gas Networks Ireland must be reformed to ‘ensure full depreciation of fossil fuel regulatory assets by 2050 at the latest, specifically the gas distribution network in the context of a gas network transition plan.”

Jerry Mac Evilly, Campaigns Director in Friends of the Earth stated: 

“The Government recently gave an initial greenlight to a polluting and expensive state-owned LNG terminal and has also left the door open to a dangerous commercial terminal in Kerry. However, the Advisory Council has raised their ‘serious concerns’ with emissions associated with a polluting LNG terminal [3].They also note energy modelling which shows a significant phase out of fossil fuel use over the next 20 years which entails “limited to no opportunity for new investments in fossil fuel systems”. We fully support the Council’s position that ensuring energy security by driving renewables, demand reduction and energy efficiency is truly a ‘no-regrets’ approach. 

The Government must heed the repeated calls of the Council and civil society and prioritise the implementation of these recommendations to guarantee a faster and fairer transition away from fossil fuels.”

Notes:

1. The Climate Change Advisory Council’s 2025 Annual Review of the Electricity Sector can be read and downloaded here.

2. See Council analysis and recommendations regarding data centres impacts on page 10 and pages 15-16.

3. See Council analysis and recommendations regarding risk of LNG on page 17.