Paul Murphy (Dublin South West, RISE)
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163. To ask the Minister for Communications, Climate Action and Environment if he is aware of a report in which the European Scientific Advisory Board on Climate Change said the EU’s policies will need revising to deliver net zero emissions by 2050 (details supplied); his views on whether the EU should stop subsidising fossil fuels and to redirect such spending towards targeted actions that help vulnerable households; what actions will he take; and if he will make a statement on the matter. [4140/24]

Eamon Ryan (Dublin Bay South, Green Party)
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The report the Deputy refers to is the European Scientific Advisory Board’s (ESAB) Towards EU climate neutrality: progress, policy gaps and opportunities, published 17 January 2024, which finds that increased efforts are needed across all sectors to achieve the EU climate objectives beyond 2030.

Ireland fully supports the EU’s climate objectives, as set out in the EU Green Deal and EU Climate Law. These commitments are in step with our national climate objectives, as set out in the Climate Action and Low Carbon Development Act, 2015 – 2021. Ireland supports full implementation of the initiatives agreed under the Green Deal and Fit for 55 package, and will consider additional actions, if and where necessary, to ensure the EU meets its collective objective of climate neutrality no later than 2050.

I have consistently advocated for further action on the phase-out of fossil fuels and of inefficient fossil fuel subsidies. I welcome the outcome of the first ever Global Stocktake (“GST”) at COP28, which reviewed Parties’ progress in achieving the ambition set out in the Paris Agreement. Amongst other necessary actions, the GST called on Parties to phase out inefficient fossil fuel subsidies that do not address energy poverty or just transitions, as soon as possible. While at COP28, I was pleased to join an international coalition to phase out fossil fuel subsidies. The coalition focuses on transparency around existing fossil fuel subsidies, identifying and addressing international barriers to phasing out such subsidies, and international dialogue to share knowledge and strategies on phasing out fossil fuel benefits. Further, as part of international efforts to reduce fossil fuel use, at the World Trade Organisation (WTO) level, the EU is engaged in the Fossil Fuel Subsidy Reform (FFSR) initiative, which Ireland fully supports. The FFSR seeks to rationalise and phase out inefficient fossil fuel subsidies that encourage wasteful consumption and encourages WTO members to share information and experiences to advance discussions at the WTO.

I fully agree that it is of the utmost importance that EU policy fully aligns with our stated level of ambition and international commitments, as emphasised by the ESAB report. The Energy Tax Directive is the legislative framework for taxation of fuels used for transport and heating in the EU. In July 2021, as part of the Fit for 55 Package, the Commission published a proposal to revise the Energy Tax Directive which includes phasing out certain tax fossil fuel subsidies. The revision would better align the energy tax code with the broader climate ambition of the EU, and phasing out tax reliefs and exemptions for fossil fuel use forms part of this agenda. Ireland is actively engaged in the negotiation of the Energy Tax Directive which is ongoing.

A key step beyond 2030 will be the establishment of the EU’s 2040 climate target. On 25 January, I co-signed a joint call for an ambitious 2040 target, alongside Ministers from 10 other ambitious EU Member States, advocating that the EU adopt an ambitious target that takes into account the principles in the European Climate Law, such as best available science, cost-effectiveness, a fair and just transition and the costs of inaction, as well as the advice of the ESAB. An ambitious target will contribute significantly to the phasing out of fossil fuels.

The EU is committed to delivering on its climate commitments in a manner that ensures a just and socially fair transition, including directing funding to support vulnerable households. For example, an EU Just Transition Fund is in place to support the regions and communities in Europe that are most negatively affected by the transition to climate neutrality, ensuring that no one is left behind. In Ireland, this provides funding to the Midlands region, to address the longer-term socio-economic transition arising from the end of commercial peat extraction and peat-fired power generation. The new Social Climate Fund, established as part of the Fit for 55 Package, will dedicate €65 billion from the EU budget, and over €86 billion in total, to support the most vulnerable citizens and small businesses with the green transition.

As Minister, I remain committed to ensuring that Ireland and the EU maintain momentum in phasing out fossil fuels, and that we stay on-track to achieve climate neutrality before 2050.