Diarmuid Wilson (Fianna Fail) | Oireachtas source

I welcome the Minister of State and thank him for introducing this important Bill which I am taking on behalf of my colleague, Senator Horkan, who, unfortunately, is attending a committee meeting.

Fianna Fáil fully supports the Bill which will obligate the National Treasury Management Agency to divest the Irish Strategic Investment Fund, ISIF, of its assets in fossil fuel companies. Like the Minister of State, I also thank Deputy Pringle, Trócaire and the Department of Finance for the extensive work they have done on this issue. While the initial form of the Bill might have had some unintended consequences, I am happy that in the constructive talks held with various parties, including Fianna Fáil, these issues were ironed out.

The ISIF has a reported €133 million invested in at least 152 fossil fuel companies. This amounts to 12.2% of all stocks owned by the ISIF. We believe selling these stocks would send a clear message that Ireland was determined to rectify its recent failures to live up to its climate change commitments. Furthermore, the Bill will put Ireland at the forefront of a global campaign to divest from fossil fuel companies. Engaging with them to lower their emissions has, unfortunately, been unsuccessful. Research from the University of Oxford shows that divestment would encourage a change in behaviour by undermining a key source of fossil fuel companies’ funding without having a significant impact on the ISIF.

Divesting from fossil fuel companies actually makes practical economic sense. An analysis has shown that had Ireland divested in 2015, the ISIF would have accumulated €22 million more owing to low oil and gas prices. The Minister of State also alluded to this in his contribution. Oil, gas and coal are not the blue chip investments they once were. It is estimated that retaining fossil fuel investments in the past three years may have cost Ireland in excess of €100 million. However, the Bill does nothing to address the fact that Ireland is wildly off target to meet its 2020 emissions targets. Unfortunately, the Government has a lot to answer for in that regard. The Seanad has been instrumental in challenging this failing. The Bill should be passed without delay and the ISIF directed to swiftly divest its fossil fuel holdings.