Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

In regard to the value of the spend from the infrastructure, climate and nature fund on climate measures, we have earmarked €3.15 billion. The balance is to underpin the public capital programme and the investment under the national development plan, NDP, which has a whole range of environmental and green tests, as would be expected. It is not the case that the remainder of the fund will not get invested in projects that have environmental benefits or which help us to achieve our decarbonisation goals. That will happen.

On ESG, what we have here are enhanced ESG provisions and statutory recognition of ESG as a vital consideration in terms of the investment strategy as set out in sections 6 and 16. The Bill explicitly provides for the assessment of ESG matters as part of the investment policy and strategy for both funds. Specifically, it requires the NTMA to take account of ESG matters and the risk they pose to the assets of the fund. Where an investment is considered to represent an inappropriate level of risk, whether in terms of ESG risk or otherwise, the NTMA will consider whether that investment should be made.

Regarding the investment policy for each fund, the legislation sets out that the NTMA is required to have regard to the risks posed by ESG matters it considers appropriate as part of the investment process. In the investment strategy, the NTMA is required to describe how it takes into account risks posed by ESG matters in its investment decisions, the categories of investments in which it will not invest and how it decides the basis for determining such categories of investments. The agency is mandated to comply with the investment strategy.

I want to assure the Senator about the level of importance the NTMA and I attach to this issue. Only this afternoon, before I came to the Chamber, I had a meeting with the chair of the agency at which I emphasised the importance, in the setting up of these two new funds, of full respect and regard for the ESG provisions. They will be centre stage. The issues we have been discussing in this House and in Dáil Éireann in recent months will not go away. ESG concerns are now global. We must prepare for ensuring we have an investment strategy that respects those considerations. I emphasised that this afternoon to the chair of the NTMA.