Dáil Éireann Debate, Wednesday - 12 May 2021
100. Deputy Holly Cairns asked the Minister for Finance the steps he is taking to fulfil the programme for Government commitment to prioritise green finance strategic actions that are developed in line with climate justice targets and sustainable development goals; and if he will make a statement on the matter. [25167/21]
View answerIreland has traditionally been a strong supporter of sustainable finance initiatives, and the Irish Government has long recognised the need for action on these initiatives both to take advantage of the associated opportunities and to address the need for transition from unsustainable practices. Reflecting this, sustainable finance is a specific horizontal priority within the Government’s current strategy for the further development of the international financial services sector, ‘Ireland for Finance’.
The Strategy aims to make Ireland a leader in the field, in particular through further enhancing and deepening the base of expertise and activity in sustainable finance that we already have here.
To this end, the Ireland for Finance Action Plan 2021 has 10 (from the 46 overall) action measures which will progress the sustainable finance agenda. These include the development and delivery of training and education programmes to build capacity and expertise in the industry in Ireland, as well as a ‘deep dive’ into Environmental, Social and Corporate Governance (ESG) data needs to measure progress and identify barriers in advancing this agenda. Additionally, an assessment of outstanding issues with identifying and managing biodiversity impacts, dependencies and associated financial sector risks is being undertaken.
More broadly Ireland has been active with an increasingly important role in international efforts to accelerate the sustainable finance agenda, including through our role in the Coalition of Finance Ministers for Climate Action, and the Central Bank’s involvement with the international Network for Greening the Financial System.
This is in addition to my Department's input and work across International Financial Institutions (IFIs) such as the IMF and World Bank where sustainable finance and climate action are central areas of interest especially in the development of post-Covid recovery measures. Other IFIs such as the European Investment Bank (EIB) and European Bank for Reconstruction and Development (EBRD), where Ireland is an active member, are implementing strategies for the coming decades to ensure that at least 40% of their funding for new projects will be climate-related as part of an overall objective of transitioning to green low carbon economies by 2030 and net zero by 2050.
At EU level, I welcome the work being undertaken by the EU Commission in developing a renewed strategy for sustainable finance, in particular by progressing the transition by boosting sustainable investments and by moving sustainable finance beyond climate objectives.
Similarly, the EU’s Green Taxonomy regulation, and the disclosures directive, which will form the cornerstone of the new regulatory regime, are major steps forward. Their implementation will be instrumental in identifying, measuring and helping remove barriers to the advancement of our common sustainable goals in the years ahead.
