Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

Last week the Government published Ireland's climate action plan. Climate disruption is already having diverse and wide-ranging impacts on Ireland's environment and society, as well as on its economic and natural resources. The climate action plan sets out an ambitious course in the coming years to address this issue. The plan which represents an all-of-government approach to the climate challenge consists of 183 actions. Its focus on renewable energy, for example, includes actions aimed at having 1 million electric vehicles in the State and retrofitting 500,000 homes by 2030.

As my colleague, the Minister for Communications, Climate Action and Environment Deputy Bruton, said when he launched this important document, realising the plan will involve a radical change in the way we do things. The plan will require considerable investment from public and private sector sources of funding. According to some estimates, investment of €50 billion or more will be needed. If we are to meet the plan's objectives, we must harness private capital at home and abroad. This can be achieved by Ireland which was one of the first countries to recognise the importance of green and sustainable finance. The private equity funding stream is unavailable in Ireland as a result of the failure to date to pass through both Houses the investment limited partnership legislation which was published recently. The deployment of capital for the decarbonisation of the economy and our society requires blended finance from Government sources, multilateral banking sources, borrowings and private equity. When the investment limited partnership legislation is passed, all funding streams will be available in Ireland to make it a global centre of sustainable green finance.

Since 2012, the Government has been steadily building a cluster of experts in this area. Several Irish firms are considered to be global leaders in this sector. There is critical mass of expertise in Dublin and Cork. Over €30 billion in green and sustainable funds are managed, listed or domiciled from Ireland. Ten specific green and sustainable finance actions are included in the Ireland for Finance 2025 strategy which was launched by the Department of Finance recently. This shows that activity is increasing at a fast pace. The ESB recently issued a €500 million green bond to support its decarbonisation efforts. At an event jointly co-hosted by the Department of Finance and Sustainable Nation Ireland in May the World Bank issued and listed a €1.5 billion sustainable bond on the Irish Stock Exchange. It was the first World Bank bond in Ireland in 25 years. Both bonds build on last year's Irish sovereign €3 billion green bond. Ireland is just the fourth country in Europe to issue a green bond. On Tuesday of this week the National Treasury Management Agency announced that €1.95 billion of the €3 billion available had already been allocated to eligible green projects. Ireland will build on this by becoming the first country in the world to divest public money from fossil fuel companies and industries when the Fossil Fuel Divestment Bill 2018 is enacted.

I would like to mention some other notable green and sustainable finance achievements in recent months. My colleague, the Minister for Finance, Deputy Donohoe, has become a member of the global coalition of finance Ministers for climate action. The Central Bank of Ireland has joined more than 30 other central banks as a member of the Network for Greening the Financial System. Since February, the Ireland Strategic Investment Fund has had climate change as one of its five priority investment themes. Late last year Dublin was selected as the European headquarters of the United Nations' environmental and financial sustainability centres. As we seek to build on this momentum and support Irish efforts in this area, we will publish a national sustainable finance road map for Ireland later this year. This road map which will be a 2019 output of the Department's Ireland for Finance 2025 strategy will be launched during Ireland's second climate finance week which will take place from 4 to 8 November. Irish capital market participants which have increasing expertise in green and sustainable finance will play a key role under the Government climate action plan by developing new products and services that can unlock capital to meet Irish needs and perhaps do likewise further afield.

The direction of travel is clear. Climate change is a fact. It recognises no borders. As the Minister of State with special responsibility for financial services, I will oversee implementation of the Ireland for Finance 2025 strategy. I look forward to working with my colleagues to achieve successfully our climate targets between now and 2030.

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