Michael McGrath (Cork South Central, Fianna Fail)
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At the outset, the Deputy should note that as Minister for Finance, and a Governor of the European Investment Bank (EIB), I have no role in the negotiation of contracts between the EIB and any borrowers here in Ireland. In addition, in my role as a Governor of the EIB, I have no role in the allocation of financing in Ireland, nor do I have the authority to specify which sector funding should be allocated to. This said however, I am keen that suitable projects in Ireland can access EIB financing, where it is possible, in relation to: priority projects for climate and environmental sustainability; innovation and skills; infrastructure; small and medium-sized enterprises; cohesion, and development. In that regard, the Deputy may be aware that the EIB has provided in the region of €1 billion in financing to Irish projects per annum in recent years, with climate financing being a significant part of this overall financing.

To ensure that this level of financing is maintained or augmented, I and my Department are happy to play a facilitation role to promote opportunities for EIB investment. Firstly, I engage regularly with the EIB President, including at meetings of the EU Council of Finance Ministers and other fora, and meet EIB officials where possible during their missions to Ireland. I hosted a meeting with the EIB’s former President, Dr. Werner Hoyer, in October 2023, and hope to host the new President, Ms. Nadia Calviño, in the coming months. In addition, my Department facilitates the organisation of the EIB-Ireland Financing Group. The EIB-Ireland Financing Group, co-chaired by me and the President of the Bank, brings together my Ministerial colleagues from relevant Government Departments, including the Department of the Environment, Climate and Communications, and representatives from the Bank to engage on opportunities for future EIB financing. This political level meeting meets at least once a year, and is supported, when necessary, by official level sub-groups. I co-chaired the Group’s most recent meeting in June of 2023 with former EIB Vice-President Ricardo Mourinho-Felix, in Cork.

At this meeting, we were able to flag potential opportunities for financing in the regions. In terms of 2024, my officials are engaging with the EIB in relation to the organisation of meeting of this Group and its sub-groups where necessary.

In addition to this formal structure, my Department also engages regularly with the EIB Group’s Office in Ireland, and assists the Office in engaging more widely with stakeholders, including relevant Government Departments and State Bodies. The EIB Office, which opened in recent years, is key to assisting interested parties, including private sector stakeholders, in engaging with the EIB, whether it be for advisory or financial support. The Deputy will appreciate that advisory support is important as it can lead to financial support subsequently.

My Department has supported engagement by stakeholders with the EIB’s advisory hub in a number of sectors, including the climate sector. EIB advisory support to Peatlands Finance Ireland (PFI) in relation to funding models for peatland restoration is an example of this. As well as the Dublin Office, officials from my Department have regular and extensive engagements with EIB officials at its headquarters in Luxembourg and in Dublin. This aims to build on the existing positive relationships between the Bank and my Department to deepen and widen the areas funded by the EIB in Ireland, covering both the private sector and Government Departments/Agencies.

Finally, by way of information to the Deputy, it is worth noting a number of important recent climate-related projects that have benefitted from EIB Group support. These include the provision of financing towards the Celtic Interconnector between Ireland and France, the ESB’s Smart Meter Implementation Programme, and a number of on-shore wind farms. In addition, the EIB Group has provided counter guarantees to various State-backed lending schemes, such as the SBCI’s Growth and Sustainability Loan Scheme, supported by the Department of Enterprise, Trade and Employment and Department of Agriculture, Food and Marine. This scheme provides SMEs and Small Mid-Caps, including farmers and fishers, with long-term financing to either encourage the growth and resilience of their enterprise or invest in climate action and environmental sustainability measures designed to improve their performance. The EIB Group has also confirmed its support for the Government’s new ‘Home Energy Upgrade Scheme’, through a counter-guarantee. The Scheme will have €500m capacity for government-backed, low-interest home energy upgrade loans. A full overview of EIB Group financing in Ireland by year is available on the EIB’s website (www.eib.org/en/projects/index.htm)