Réada Cronin (Kildare North, Sinn Fein)
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241. To ask the Minister for Public Expenditure and Reform if funding from the infrastructure, climate and nature fund will be directed towards major infrastructure projects undertaken by the state; if that fund will be ringfenced specifically for climate initiatives; and if he will make a statement on the matter. [27657/25]

Jack Chambers (Dublin West, Fianna Fail)
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The Future Ireland Fund and Infrastructure, Climate and Nature Fund Act 2024 established the Infrastructure, Climate and Nature Fund (ICN Fund).

The purpose of the ICN Fund is to support the economy in times of exceptional need and to support Ireland’s transition to a low carbon economy through the funding of designated environmental projects. A total of €2 billion will be invested in the Fund each year from 2024 to 2030 building up to an overall fund of €14 billion.

The Fund will support expenditure by the State:

• In any year from 2026, where there has been, or is likely to be in the subsequent year, a significant deterioration in the economic or fiscal position of the State. Up to 25% of the ICN Fund can be used in the given year for this purpose; and

• In the years 2026 to 2030, on designated environmental projects to address climate change issues and nature and water quality degradation. Up to 22.5% of the Fund may be drawn down to support designated environmental projects in any given year from 2026 to 2030, up to a cumulative maximum of €3.15 billion.

Designated environmental projects will be those that contribute, either directly or indirectly, or are likely to contribute to:

• the reduction of greenhouse gas emissions,
• an improvement in water quality,
• an improvement in nature and biodiversity objectives.

As outlined in the Programme for Government 2025, the review of the National Development Plan will encompass all public capital investment, including the Apple Escrow Fund, other share sales, and broader State funds including the Infrastructure, Climate and Nature Fund.

As such, the allocation of funding from the ICN Fund will be subject to engagement between myself and other relevant Ministers in line with this NDP review process, which is due to be completed this summer.

It is intended that projects will be designated by Ministers after the allocation process has concluded. Major infrastructure projects could be designated as environmental projects as long as they meet the timelines and criteria for such projects outlined in the legislation (Section 20 of the Act).