Darren O'Rourke (Meath East, Sinn Fein)
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40. To ask the Minister for Public Expenditure and Reform if he will report on the progress to date on the development of a model to assess the impact of infrastructure investment as contained in the 2023 Climate Action Plan; if a framework has been established to capture the value and consequences of infrastructural development and if he will make a statement on the matter. [22091/23]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Public Spending Code is the tool that the Government uses to consider the costs and benefits of the capital investment decisions it faces. As part of my Department’s enhanced mandate around the delivery of the National Development Plan (NDP), I recently announced that the Public Spending Code will be replaced by a set of Infrastructure Guidelines. It is critical that these Infrastructure Guidelines incorporate a realistic assessment of the likely impact on greenhouse gas emissions of Government investment decisions.

The National Development Plan 2021-2030 committed my Department to reviewing certain elements of the Public Spending Code to ensure climate considerations are adequately incorporated. As part of this programme of works, my officials have been working with the OECD, funded by the EU Commission through DG REFORM’s Technical Support Instrument, on two aspects of public capital expenditure appraisal requirements in Ireland.

1. The model for assessing the emissions impact of infrastructure investment; and

2. The appraisal of investments that may be vulnerable to the impacts of climate change.

This work will help to improve the Government’s understanding of the relationship and impacts of investment decisions on the wider environment and climate.

There has been extensive engagement with other Departments and stakeholders including an OECD fact finding mission in April 2022 and a workshop and diffusion event in January 2023.

The OECD are currently finalising their report on Strengthening Environmental Considerations in Public Investment Management in Ireland. On completion of the report, my Department will evaluate the OECD’s recommendations before considering what changes may be appropriate for the new Infrastructure Guidelines.

Over the longer term, as set out in the NDP 2021-2030, the Department will examine the role that the Infrastructure Guidelines can play in the achievement of broader environmental objectives and the role of the code in support the national commitment to achieving net zero greenhouse emissions by 2050.