Dáil Éireann Debate, Wednesday - 10 May 2023
66. Deputy Darren O'Rourke asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the progress to date on the examination of the role the Public Spending Code can play in the achievement of broader environmental objectives, for example, valuing biodiversity or ecosystem services as contained in the 2023 Climate Action Plan; and if he will make a statement on the matter. [22189/23]
View answerThe National Development Plan (NDP) Review 2021 committed my Department to reviewing certain elements of the Public Spending Code to ensure climate considerations are adequately incorporated within the code. This commitment was reiterated in the Climate Action Plan 2023.As part of this programme of works, my Department is currently in the process of revising the shadow price of carbon in light of our enhanced climate ambition. At the request of my officials, the Marine and Renewable Energy Institute in UCC have carried analysis to inform this work. My Department is reaching the final stages of this work. The update will ensure emissions are appropriately priced in economic appraisals and that the values in the Public Spending Code align with Ireland's climate targets.My officials have also been working with the OECD, funded by the EU Commission through DG REFORM’s Technical Support Instrument, on two aspects of public capital expenditure appraisal requirements in Ireland: i) The model for assessing the emissions impact of infrastructure investment; and ii) the appraisal of investments that may be vulnerable to the impacts of climate change. This work will help to improve the Government’s understanding of the relationship and impacts of investment decisions on climate outcomes.As was explicitly noted in the NDP, the commitment to investigate whether the Code can play a positive role through the development of central guidance on valuing biodiversity or eco-system services is a longer term objective. It will be progressed over a number of years as the other, more immediate, steps in the programme of reform committed to in the NDP are completed. The NDP review also specifically noted that it would be informed by results from Government-supported work underway on natural capital accounting, such as the INCASE project and the Government’s Biodiversity Action Plan. This work is still underway.
