Rose Conway-Walsh (Mayo, Sinn Fein)
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252. To ask the Minister for Public Expenditure and Reform when he anticipates the review intended to update the shadow pricing related to the climate targets in the Public Spending Code; and if he will make a statement on the matter. [24503/23]

Paschal Donohoe (Dublin Central, Fine Gael)
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Ireland has committed to achieving ambitious but challenging legally-binding greenhouse gas emission reduction targets, with key milestones in 2030 and 2050. Therefore, economic appraisals should include an appropriate valuation of the cost that society will bear in dealing with the greenhouse gas emissions any project might give rise to, or the benefits to society of a project that mitigates emissions.

In 2019, my Department reviewed the methodology used to derive the shadow price of carbon and updated the values applied in public sector economic appraisal. However, since 2019, Ireland’s climate targets at both the national level and the EU level have increased significantly in ambition. Therefore, the National Development Plan review committed my Department to revising the shadow price of carbon in the Public Spending Code in light of Ireland's enhanced climate ambition in the Climate Action and Low Carbon Development Act 2021.

My Department is currently in the process of revising the values in the Public Spending Code. At the request of my officials, the Marine and Renewable Energy Institute (MaREI) in UCC have carried out the analysis needed to inform this work. My Department has also liaised with the Department of Environment, Climate and Communications throughout the process.

My Department is reaching the final stages of this work. The update will ensure we are pricing emissions appropriately in economic appraisals and that the values in the Public Spending Code align with our climate targets.