Neasa Hourigan (Dublin Central, Green Party)
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221. To ask the Minister for Finance when the planned examination of green budgeting practices from a tax perspective as per action 69 of the Climate Action Plan 2021 is due to take place; and if he will make a statement on the matter. [56021/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Department of Finance commenced green budgeting analysis of tax measures in Budget 2022.

As the Deputy is aware, green budgeting is a process which seeks to consider the effects of fiscal policy and the budgetary process on the transition to a more sustainable and climate friendly economy.

The publication “A Review of Green Budgeting from a Tax Perspective” was published on Budget day along with the Budget 2022 documents, and is available on the Budget website at the following link: www.gov.ie/en/publication/7e491-taxation-measures/. This review provides a framework for undertaking green budgeting analysis of tax measures in an Irish context and analyses existing tax measures and recent budgetary changes. The green budgeting related tax measures in Budget 2022 were also identified in the ‘Budget 2022: Tax Policy Changes’ document, available at the same link.

Analysis in the report demonstrates that the tax system as a whole can be considered climate-positive, in monetary terms, and that recent budgetary changes have improved the climate-positive contribution of the tax system in these terms. This is due significantly to the climate-positive effect of tax revenue measures, which outweigh the overall climate-negative effects of tax expenditures. The review highlights the importance of identifying such climate-negative measures, though acknowledging that there may be wider societal and economic reasons why these measures were put in place.

The analysis that has been undertaken by my Department complements work undertaken by the Department of Public Expenditure and Reform with regards to green budgeting from an expenditure perspective.

Neasa Hourigan (Dublin Central, Green Party)
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222. To ask the Minister for Finance his plans to issue new Irish sovereign green bonds as per action 74 of the Climate Action Plan 2021; and if he will make a statement on the matter. [56023/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am informed by the National Treasury Management Agency that on Thursday last, 11 November, the NTMA sold €650m of the Irish Sovereign Green Bond (ISGB) maturing in 2031 in a bond auction. It sold a further €97.5m in the non-competitive auction bringing to €747.5m nominal the total issued in the auction. The cash proceeds raised from this auction were €839m.

This brings to almost €6.85bn nominal (over €7.3bn in cash proceeds raised) the total green bond issuance so far by the NTMA, following the inaugural issue in 2018, a syndicated tap in 2019, and an auction in September 2020.

The NTMA will continue to look for opportunities to issue further sovereign green bonds as market conditions allow.

The third annual allocation ISGB report was published in July of this year. It provides detail on allocations to eligible green projects from ISGB proceeds in 2020.

The second annual eligible green projects impact report was also issued in July of this year. It details the environmental impact measures connected to the 2019 allocation report.

Both reports will be published annually.

Neasa Hourigan (Dublin Central, Green Party)
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223. To ask the Minister for Finance his plans to develop a roadmap for review and transition away from fossil fuel tax subsidies in the transport sector as per action 259 of the Climate Action Plan 2021; and if he will make a statement on the matter. [56025/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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Action 259 of the Climate Action Plan 2021 refers to developing a roadmap for review and transitioning away from fossil fuel subsidies in the transport sector.

To complete this action, analysis of the cost and impact of existing tax fossil fuel subsidies will be undertaken. My Department will engage with other relevant Departments and based on the outcome of the analysis, a roadmap to transition away from fossil fuel subsidies will be developed.

Neasa Hourigan (Dublin Central, Green Party)
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224. To ask the Minister for Finance his plans to prepare a climate finance roadmap as per action 430 of the Climate Action Plan 2021; and if he will make a statement on the matter. [56026/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Climate Action Plan 2021 is the all-of-Government plan that sets out the steps and actions we need to take to halve our emissions by 2030 and aim to reach net zero no later than 2050. This transformation will impact on all sectors of the economy and finance flows should be consistent with a pathway towards low greenhouse gas emissions and climate resilient development.

Ireland recognises international climate action as a major priority in light of the threat climate change presents to the world, including the achievement of the Sustainable Development Goals and how climate change drives humanitarian needs. Ireland targets international climate finance towards helping the poorest to adapt to climate impacts, in the sectors and countries where they are most affected.

As mentioned in the Climate Action Plan 2021, the Programme for Government has committed to at least doubling the percentage of Ireland’s Official Development Assistance that is spent on international climate finance by 2030. This month at COP26 in Glasgow, the Taoiseach announced that Ireland will be contributing at least €225 million annually in climate finance by 2025 – increasing Ireland’s contribution to the developed countries’ agreed collective climate finance goal of $100 billion per year. The Climate Finance Roadmap will set out how we achieve this aim.

The Department of Foreign Affairs are leading on preparing the Roadmap. They will develop it in close collaboration with my own Department, as well as the Department of the Environment, Climate and Communications, Department of Agriculture, Food and the Marine and other relevant stakeholders. We look forward to working with Foreign Affairs and other colleagues to help prepare this important Roadmap in a coherent whole-of-Government manner.

Neasa Hourigan (Dublin Central, Green Party)
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225. To ask the Minister for Finance his plans to explore the potential for new tax measures to support retrofit as per action 214 of the Climate Action Plan 2021; and if he will make a statement on the matter. [56027/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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One of the actions set out in the recently published Climate Action Plan is that my Department will explore the potential for new tax measures to support retrofit. As provided in the action plan, the timeline established for this action is Q4 2022. Details of the process are yet to be finalised.

In relation to the process of assessing proposals for tax expenditures generally, I would make the following observations:

- In the normal course of events, the introduction of any new tax expenditure measure would take place in the context of the annual Budget and Finance Bill process.

- It would also be usual that proposals for tax expenditure measures would be assessed in accordance with my Department's Tax Expenditure Guidelines. These make clear that it is important that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures and where a tax-based incentive is more efficient than a direct expenditure intervention.

- Furthermore, I must always be mindful of the public finances and the many demands on the Exchequer. Tax reliefs, no matter how worthwhile in themselves, lead to a narrowing of the tax base and a strong and convincing case for the benefits and outcomes need to be articulated in order for due consideration to be given for the commitment of scarce taxpayer resources for such reliefs.