Pa Daly (Kerry, Sinn Fein)
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274. To ask the Minister for Finance to report on the work his Department is carrying out on climate finance; and if he will make a statement on the matter. [2928/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Climate finance is a key priority for the Government and for Ireland’s foreign policy. At COP26 in 2021, the Taoiseach announced the goal to provide at least €225 million annually in climate finance to developing countries by 2025. Ireland’s International Climate Finance Roadmap, was published in 2022 setting out pathways as to how this goal could be achieved. The record level of Official Development Assistance allocation for 2025, including over €810 million for the Irish Aid international development programme (a €35 million increase), reinforces Ireland's trajectory toward meeting its €225 million COP26 climate finance pledge. This goal represents an increase of 150% from a baseline of just under €90 million for Climate Finance in 2020.

Ireland’s International Climate Finance Roadmap sets out our strategy and priorities for this rapid scale-up in funding. It builds on Ireland's positive record and established commitment on climate finance, prioritising adaptation measures within nation’s most susceptible to the impacts of climate change. The provision of support to the most impoverished and vulnerable populations, encompassing those residing in Least Developed Countries, Small Island Developing States, and fragile states and communities, remains a core objective. Our efforts are focused on ensuring these groups are not only supported but also empowered to address the multifaceted challenges posed by climate change.

While major emitters, particularly developed countries, have accumulated significantly higher levels of historical emissions, many developing countries and regions, despite their minimal contribution to the climate crisis, are already experiencing its most severe impacts. This historical disparity underscores the need for equitable burden-sharing in climate action, recognising the principle of common but differentiated responsibilities and respective capabilities.

Adaptation is a principal area of focus within our climate finance portfolio, helping countries build resilience and withstand the impacts of climate change. We champion the need for good quality climate finance – prioritising access, effectiveness, gender-sensitivity, transparency and good governance, to ensure that climate finance initiatives address the needs of women and marginalised groups. The Roadmap also expands Ireland’s focus to encompass key related areas including support for the livelihoods of coastal communities, climate and security, and Loss and Damage.

Cognisant of the potentially devastating impact of climate events on a nation's debt repayment capacity, we acknowledge the crucial role of access to climate finance. Consequently, Irish climate finance is predominantly provided in the form of grant aid rather than loans. This funding is disbursed through a variety of channels, encompassing bilateral partnerships, civil society organisations, and multilateral funds, such as the Green Climate Fund (GCF) and the Global Environment Facility (GEF).

We recognise that there is a significant gap between current levels of climate finance and the estimated global investment required for climate action, with significant needs across regions. While public finance is and will continue to be a crucial catalyst, supplementary resources are essential. These include mobilising substantial private capital and broadening the contributor base beyond its established structure.

Our commitment to addressing climate change is underscored by our active and proactive engagement in relevant international fora such as the EU, UN and OECD. This engagement is undertaken not only to contribute to the global climate agenda but also to inform and advance our domestic climate policies and strategic priorities. We look forward to actively engaging in the year ahead.