Darren O'Rourke (Meath East, Sinn Fein)
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290. To ask the Minister for Finance his views on the inclusion of gas and nuclear energy in the European Union Taxonomy as being compatible with contributing to fighting climate change; and if he will make a statement on the matter. [4883/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Ireland is a strong supporter of the EU Taxonomy for sustainable activities because it constitutes a valuable science-based tool to classify, to guide and to help mobilise investments in activities that will help us achieve carbon neutrality. It is a voluntary tool aimed primarily for use by financial services firms and large companies.

In December 2021, the European Commission shared with Member States a draft Delegated Act under the Taxonomy, which would see certain natural gas and nuclear investments deemed sustainable during a transition period if they meet a range of conditions. Following the receipt of observations from Member States, the European Commission is deliberating as to what approach to take.

As the Deputy will know, Ireland’s Climate Action Plan acknowledges that we will use natural gas as part of our energy mix, particularly as a base reserve to provide supply when renewables are unable to meet demand, which will help provide consumers and businesses with the confidence to electrify. This is likely to be the case for other Member States as well. However, it does not necessarily follow that all activities necessary to achieve net zero emissions by 2050 should be included in the Taxonomy.

in relation to the draft Delegated Act, Ireland has submitted observations to the Commission expressing doubt over whether their draft text takes the appropriate approach on natural gas, particularly with regard to emission limits, while recognising that natural gas will be necessary for the transition to net zero while providing energy security across European countries.

We have encouraged the Commission to continue its plans to develop an extension to the Taxonomy beyond environmentally sustainable economic activities that would cover intermediate performance, which could be an appropriate way of reflecting the performance and impact of transitional activities.

The generation of energy from nuclear power is statute-barred in Ireland and the Government has no plans to revisit this legislative prohibition.