Thomas Pringle (Donegal, Independent)
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199. To ask the Minister for Enterprise, Trade and Employment if the environmental aid scheme has been renewed since 2020; and if he will make a statement on the matter. [8366/22]

Damien English (Meath West, Fine Gael)
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On the 21 December 2021 the Environmental Aid Scheme was renewed, endorsed, and adopted by the European Commission under new ‘Guidelines on State aid for Climate, Environmental Protection and Energy’ and came into force on 1 January 2022. The revision aims to ensure that state aid rules do not impede the European Green Deal goals. This will be integrated into the EU State Aid's General Block Exemption Regulation in 2022. 

My Department has been engaging with its agencies on this new framework with a view to further improving my Department's environmental aid offerings through its agencies.

Thomas Pringle (Donegal, Independent)
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200. To ask the Minister for Enterprise, Trade and Employment the application process for the district heating and co-generation elements of the environmental aid scheme; and if he will make a statement on the matter. [8368/22]

Damien English (Meath West, Fine Gael)
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The Environmental Aid Scheme operated by Enterprise Ireland and IDA Ireland is an EU General Block Exemption (GBER) Scheme and has been in place since 2009.  My Department through its agencies administers the scheme in compliance with the conditions of the Environmental Aid scheme for Ireland 2014-2020 which has been renewed to 2023. This Environmental Aid Scheme 2014-2022 sets out the conditions for the district heating and cogeneration elements of the aid scheme as summarised below:

Investment aid for high – efficiency cogeneration:

- Investment aid shall be granted in respect of newly installed or refurbished capacities.

- The eligible costs shall be the extra investment costs for the equipment needed for the installation to operate as a high-efficiency cogeneration installation compared to conventional electricity.

- The aid intensity shall not exceed 45% of eligible costs and may be increased by 10% for medium sized undertakings and 20% for small undertakings and by 5% for investments located in assisted areas as outlined in Ireland’s Regional Aid Map 2014 – 2020.

Energy efficient district heating and cooling:

- Investment aid for the installation of energy efficient district heating and cooling systems.

- The eligible costs for the production plant shall be the net extra cost needed for the construction, expansion and refurbishment of one or more generation units to operate as an energy efficient district heating and cooling system compared to a conventional production plant. The investment shall be an integral part of the energy efficient district heating and cooling system.

- The aid intensity shall not exceed 45% of eligible costs and may be increased by 10% for medium sized undertakings and 20% for small undertakings and by 5% for investments located in assisted areas as outlined in Ireland’s Regional Aid Map 2014 - 2020.

- The eligible costs for the distribution network shall be the investment costs. The eligible costs for the distribution network shall not exceed the difference between the eligible costs and the operating profit. The operating profit shall be deducted from the eligible cost ex ante or through a claw back mechanism.

Enterprise Ireland services, advice, programmes and financial supports are made available to clients via an assigned Development Adviser and assistance provided is based upon an assessment of the company’s business needs and other relevant supports available from Enterprise Ireland.

IDA Ireland continues to implement the scheme currently with its client companies.  The scheme was introduced to provide Environmental Aid Support to assist clients achieve improved international competitiveness through the production of goods and services in a manner that is more energy efficient and environmentally sustainable. The unique characteristics of any proposed project will determine the incentive package available, in particular the location of the project followed by an evaluation and negotiation process between IDA Ireland in conjunction with the client.