Richard Bruton (Dublin Bay North, Fine Gael)
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70. To ask the Minister for Agriculture, Food and the Marine the way the price of carbon fixed in the public expenditure code is factored into the design of agricultural policies; and if he will make a statement on the matter. [25195/23]

Charlie McConalogue (Donegal, Fianna Fail)
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As the Deputy is likely to be aware, all policies designed in the Department are aligned with the principles as set out in the “Public Spending Code”.

The code sets out a broad range of parameters for policy design and appraisal techniques including, as the Deputy will be aware, values for the shadow price of carbon using an abatement cost model to value Green House Gas (GHG) emissions.

This is done by converting the values of a ‘basket of seven’ GHGs into carbon dioxide equivalents and applying shadow carbon price estimates. The shadow price is based on the likely cost to Ireland in removing these emissions from the atmosphere.

I am informed that the Climate Change unit within the Department of Public Expenditure, NDP Delivery and Reform are in the process of updating the Shadow Price of Carbon Schedule, as signaled in their paper on “Valuing GHGs”. My Department officials will continue to engage with the Department of Public Expenditure, NDP Delivery and Reform as required on the new schedule as that work progresses. Within the existing code, emissions from agriculture are classified as within the ‘non-Emissions Trading Sector (non-ETS) with a shadow price of €52/tonne as of 2023 rising to €100 per tonne by 2030, rising to €265 per tonne by 2050 under the current schedule. These estimates may increase once the updated schedule is completed. OECD work shows that the shadow price of carbon will increase with the pace of decarbonisation and given our climate ambitions, it’s likely that the shadow price for carbon from Irish agriculture will increase as we strive towards our climate goals.

The Shadow Price of Carbon is considered as part of my Department’s evaluation programmes and has been incorporated into recent Spending Review papers on the Beef Data Genomics Programme and Beef Environmental Efficiency Programme, utilising the Shadow Price of Carbon to monetise the expected carbon savings from the programmes over time. These papers use the Shadow Price of Carbon to estimate the value to be generated from more sustainable practices and policies to highlight the benefits that will accumulate and accrue over time, and these are the key building blocks in ensuring a more sustainable future for the sector.

My Department is committed enabling the sector to meet our climate goals as part of the sector’s shared ambition for a world class sustainable food system as set out in Food Vision 2030. My Department continues to engage on this issue.