Dáil Éireann Debate, Thursday - 2 March 2023
102. Deputy Verona Murphy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he has drawn down Ireland's full entitlement under the EU Recovery and Resilience Fund; and if he will make a statement on the matter. [10518/23]
View answer109. Deputy Verona Murphy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will outline the green transition provisions within the National Recovery and Resilience Plan; and if he will make a statement on the matter. [10519/23]
View answerI propose to take Questions Nos. 102 and 109 together.
The National Recovery and Resilience Plan is funded under the EU’s Recovery and Resilience Facility (RRF) with Ireland in line to receive €915 million in grants over the lifetime of the Facility. The RRF is a performance-based instrument with payment contingent on the achievement of milestones and targets.
Ireland’s Plan sets out the sixteen investment projects and nine reform measures (and their associated 109 milestones and targets) to be supported covering the following priority areas:
- Advancing the Green Transition;
- Accelerating and Expanding Digital Reforms and Transformation; and
- Social and Economic Recovery and Job Creation.
The overall objective of the plan is to contribute to a sustainable, equitable, green and digital recovery effort, complementing and supporting the Government’s broader recovery effort.
Implementation of the overall plan is well underway. As part of regulatory requirements, Ireland has reported to the EU Commission on biannual progress in October 2021, April 2022 and October 2022.
The RRF grant will be paid to Ireland in five instalments. The first payment request (FPR) process began in December with annual payment claims to follow until 2026.
The first step is an informal cooperation process between the Commission and Ireland. Upon completion of this informal process, Ireland will present a formal payment request to the Commission. The Commission will then carry out their formal assessment, which consists of a thorough check of the satisfactory fulfilment of Ireland’s milestones and targets. Following this, the FPR is considered by Council after which the Commission processes the payment.
The NRRP has a strong focus on the green transition with energy and climate related measures. Those measures include increasing carbon tax and reforming climate governance, promoting investments in energy efficiency, decarbonising the enterprise sector, promoting sustainable railway transport, rehabilitating peatlands, improving water treatment, and promoting green research and development. The measures supporting green objectives account for 42% of the plan’s total allocation.
REPowerEU is the EU’s response to the global energy market disruption caused by Russia's war on Ukraine and provides for further funding via the Recovery and Resilience Facility. This will require inclusion of a new chapter within the NRRP which will be subject to negotiation, assessment and agreement by the Commission. My Department, in consultation with other Departments is considering potential proposals for funding under this mechanism.
