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Economic Policy

Dáil Éireann Debate, Tuesday - 9 November 2021

Tuesday, 9 November 2021

Questions (155)

Denis Naughten

Question:

155. Deputy Denis Naughten asked the Minister for Finance the steps taken to date to divest from fossil fuel investments; and if he will make a statement on the matter. [54322/21]

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Written answers

Ireland was one of the first countries to divest public money from fossil fuel investments. The Fossil Fuel Divestment Act 2018 was signed into law by the President of Ireland in December 2018.

The Act imposes certain prohibitions and restrictions with respect to the investment by the National Treasury Management Agency of assets of the Ireland Strategic Investment Fund (ISIF) in certain fossil fuel undertakings. It prohibits the ISIF from directly investing in any undertaking that generates 20% or more of its turnover from the exploration for or extraction or refinement of a fossil fuel such as oil, natural gas, peat, coal or any derivative thereof intended for use in the production of energy by combustion.

Where the Agency becomes aware that an undertaking in which such assets have been so invested by it is, or has become, a fossil fuel undertaking, the Act requires the Agency to divest the assets of the ISIF from such investment.

The Act also makes provision for a restriction on such investment when the investment is of an indirect nature. That is, investment of the assets of the Fund in an investment product or in a collective investment undertaking. Under the Act, the Agency shall endeavour to ensure that the assets of the Fund are not invested in an indirect investment unless it is satisfied on reasonable grounds that such indirect investment is unlikely to have in excess of 15% of its assets invested in a fossil fuel undertaking.

ISIF has developed a list of 246 fossil fuel companies in which it will not invest, as determined by criteria within the Act. This list is updated on a semi-annual basis in line with methodology which is aligned to the legislation and is available on ISIF’s website.

This legislation has been utilised to divest the State from fossil fuel undertakings in a manner which is consistent with the achievement of the national transition objectives, the implementation of the State’s climate change obligations, and Government policy. To date, ISIF remains one of a select few sovereign wealth funds globally to implement a fossil fuel divestment strategy.

Question No. 156 answered with Question No. 93.
Question No. 157 answered with Question No. 112.
Question No. 158 answered with Question No. 125.
Question No. 159 answered with Question No. 119.
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