Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

As Ireland has committed to achieving ambitious greenhouse gas emission reduction targets, with key milestones in 2030 and 2050, the Government's assessment of any new investments it is considering making should consider the impact these investments will have on greenhouse gas emissions. Including a valuation of the cost that will be borne to eliminate any emissions a project may give rise to in an economic appraisal is a means of doing this. Placing a value on greenhouse gas emissions allows the economic appraisal to include the full impact of the benefits of projects that will reduce such emissions.

In 2019, my Department reviewed the methodology used to derive the shadow price of carbon and updated the values applied in public sector economic appraisal. However, since 2019 Ireland’s climate targets at both national and EU levels have increased significantly in ambition. Therefore, the national development plan review committed my Department to revising the shadow price of carbon in the infrastructure guidelines in light of Ireland's enhanced climate ambition.

At the request of my officials, the marine and renewable energy institute, MaREI, in UCC has carried out the analysis needed to inform this work. In addition, my officials have worked with the OECD to ensure the climate aspects of the infrastructure guidelines are robust and reflect best practice internationally. This work is complete and proposals for the revision of the shadow price of carbon are at the final stage of development internally.

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