The Government has launched a new €10 million fund to help businesses take action to drive down their emissions and embed sustainability in how they work.

The Climate Enterprise Action Fund, which will be administered by Enterprise Ireland, will fund up to 850 companies at an early stage of exploring climate and sustainability to develop a high-level company action plan.

It will also fund up to 100 more advanced companies to develop comprehensive multi-annual business plans with climate change and sustainability actions integrated into the company's overall strategy.

Tánaiste Leo Varadkar said the road to recovery after the pandemic, must be a sustainable one.

"We must break the link between economic prosperity and fossil fuels and fully embrace the transition to a low-carbon economy.

"The enterprise sector accounts for just over 13% of the economy’s total emissions so all businesses will have a part to play in achieving the 7% per year, on average, emissions reduction that the Government has committed to over the next decade.

The Minister for Environment, Climate and Communications and Minister for Transport Eamon Ryan said there is now a huge opportunity for Irish businesses to benefit from being early adopters when it comes to climate action.

"The Government has recently published the Climate Bill which commits Ireland to halving our greenhouse gases by 2030 and reaching net zero by 2050.

"The Enterprise sector will have a key role to play; not only can it take action to reduce its own emissions, it can influence the entire economy by driving innovation in other sectors such as transport, housing, energy and agriculture," he said.