Jennifer Whitmore (Wicklow, Social Democrats) | Oireachtas source

I acknowledge and thank Deputies Pringle, Collins and Connolly for this really important motion, and for the previous work they conducted on this in 2018. It was a landmark Act and a game-changer when it comes to Ireland taking seriously our climate actions and where investments go. What I find particularly good about this motion is that the Independent group have done what should actually have been done by the Government, which is the continual review of how legislation is operating to see whether or not it is meeting its intent and if it can be improved. Unfortunately, it was not the Government bringing forward this legislation to say where it had identified gaps. It is actually Deputy Pringle and his colleagues, and Trócaire and ActionAid Ireland, who have done the work to identify the huge gaps in the Act. I thank them for that. The gaps that exist were detailed in the ActionAid Ireland report on this issue and indeed in this motion. Those gaps include the indirect investments, the ability for ISIF to use State money to indirectly invest in fossil fuel undertakings and invest in hedge funds, and the absence of agribusiness, which is another positive aspect of this motion.

The Social Democrats will be supporting the motion. In light of the fact that it is the day after the COP statement has been finalised, and acknowledging what the Minister, Deputy Ryan, has been stating at COP about finance, it is really important that we get this right. In the statements from the Minister he said that he wants to see "a plan to ensure that fossil fuel industries take greater responsibility for climate financing and investment in the shift to renewables." That is absolutely critical.

Also critical is for Government to take responsibility for where it invests State money and to ensure it is not invested in fossil fuel industries. Unfortunately, we have not seen that with the ISIF financing system.

The mistakes, flaws and gaps identified by the Independent Group and ActionAid in the Fossil Fuel Divestment Bill and its operation will be carried forward into the climate and nature fund announced in the budget. That is of huge concern. We often hear the statement, “Show me your budget and I will show you your priorities.” I would extend that to, “Show me where you are investing your money and I will show you where your priorities are.” With the future Ireland fund and the infrastructure, climate and nature fund, it appears the Department of Finance has taken the template from the fossil fuel divestment fund and its operation and has applied it directly across those funds. When those funds were announced, I had major concerns, initially, about the fact we said €3 billion was being set aside for climate and nature funding for a number of years down the road when the crisis is here and now. The investment is needed now and not in a number of years’ time. Since looking into this further, I have other significant concerns about the operation of the fund. The Minister of State, Deputy Carroll MacNeill, stated the call to amend the Act may significantly limit ISIF’s investment universe and ability to deliver on its commercial mandate. That is also the mandate on which the climate and nature fund is based. The entire premise of that fund is a commercial one. That is the first place the Government needs to look to reform: exactly how that fund is operating.

I draw attention to other aspects of the heads of Bill in relation to the climate and nature fund. It is stated, "The Agency shall endeavour to ensure that the assets of the Future Ireland Fund and the Infrastructure, Climate and Nature Fund are not directly invested in a fossil fuel undertaking”, and that it should also endeavour to ensure they are not invested in any indirect investment at any time, unless it is less than 15%. It is pretty much the same as the comments in the Fossil Fuel Divestment Act and how that operates. Money from the climate and nature fund can be used to invest on a commercial basis in Ireland or overseas. It is stated:

...the Agency may invest the assets of the Future Ireland Fund and the ... Climate and Nature Fund in a fossil fuel undertaking or in a collective investment undertaking the assets of which are invested ... in a fossil fuel undertaking, where the Agency has satisfied itself on reasonable grounds that the investment is intended to be consistent with ... the national transition objective ... the State’s climate change obligations, and ... policy of ... Government...

My reading is the State could theoretically invest the €3 billion in the climate and nature fund in fossil fuel undertakings overseas and that would be allowable under this. I know we are only at the heads of Bill stage but I ask that the Minister of State engage quickly with the Department of Finance on the Bill. Under no circumstances should the State invest money in fossil fuels, directly or indirectly, through any loopholes or schemes. It should be absolutely out of bounds when it comes to State money. Only when I see the remit and scope of the climate and nature fund will I be confident the Government is taking this seriously. It comes down to where the money goes. Individuals are doing as much as they can. They are buying EVs, retrofitting and putting money into solar at huge cost. For the majority of people it is very expensive. People are doing it but it will be worth naught if State money continues to fund fossil fuel investments, directly or indirectly. The State needs to show leadership and it shows leadership by where it spends what is not Government money but taxpayer and public money.

I look forward to seeing the heads of Bill amended and to that discussion. I hope the Government will not only amend them and take Deputy Pringle's motion on board but will at the same time reflect on the climate and nature fund so that it meets its intended purpose.

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