Dáil Éireann Debate, Tuesday - 18 April 2023
476. Deputy Paul Murphy asked the Minister for Enterprise, Trade and Employment whether any conditions related to environmental sustainability and meeting the goals outlined in the Climate Action Plan are placed on companies in order to receive financial support from the IDA. [16374/23]
View answerAmbitious action on sustainability is to the forefront of decision making in executive offices at a global, EU and national level, as highlighted in this Government's White Paper on Enterprise. In this regard, IDA sees the sustainability agenda as an opportunity for future investments and a competitive necessity for clients in the existing FDI base.
IDA Ireland’s 2021-24 strategy includes a focus on sustainable growth in all its forms, including the promotion of responsible and environmentally sustainable business practices among the Agency’s client base. Sustainability considerations, including a company’s corporate level approach to the environment and whether a client has a climate action plan for its Irish site, form part of IDA’s due diligence process in assessing investment projects for approval.
The focus on decarbonisation in the White Paper on Enterprise aligns with the objectives of the sustainability pillar of IDA’s 2021-24 strategy. As set out in the White Paper, IDA will incorporate carbon abatement as a consideration in project evaluations alongside factors such as employment and value added. To this end, the IDA is working with my Department to incorporate carbon pricing into the agency's grant "Economic Appraisal Model" or EAM. The pilot of this model is well advanced and the Agency should be in a position to implement the new model by year-end.
In addition, all environmental supports require an assessment of the project proposal and its projected environmental impact, in the first instance, and thereafter it is a condition of each grant that the proposed capital investment is completed and commissioned in line with the project proposal. In addition, it is often a requirement of these types of grants that payments be linked to the achievement of certain interim project milestones and/or a follow-up review of the completed investment to ensure that it meets the objectives outlined in the project proposal.
Finally, IDA’s current standard grant terms and conditions include a condition wherein the grant aided entity must comply with all environmental controls and prevention of pollution regulations throughout the term of the contract.
