Dáil Éireann Debate, Tuesday - 27 June 2023
247. Deputy Darren O'Rourke asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will report on the review of the assessment emissions impact of public investment and the recommended reforms, as outlined in the climate action plan; and if he will make a statement on the matter. [31063/23]
View answerThe Public Spending Code is the tool that the Government uses to appraise the costs and benefits of the capital investment decisions it faces. As part of my Department’s enhanced mandate around the delivery of the National Development Plan (NDP), I recently announced that the Public Spending Code will be replaced by a set of Infrastructure Guidelines.
The 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 work, my officials have 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:
1. The model for assessing the emissions impact of infrastructure investment; &
2. The appraisal of investments that may be vulnerable to the impacts of climate change.
This project has been ongoing since late 2021. There has been extensive engagement with other Departments and stakeholders including an OECD fact-finding mission in April 2022 and a workshop and diffusion event in January 2023.
The OECD are currently finalising their report on Strengthening Environmental Considerations in Public Investment Management in Ireland. On completion of the report, DPENDR will evaluate the OECD’s recommendations before considering what changes may be appropriate for the Infrastructure Guidelines.
In addition to this work, my Department is also reaching the final stages of revising the shadow price of carbon in light of our enhanced climate ambition. This update will ensure emissions are appropriately priced in economic appraisals and that the values in the Infrastructure Guidelines align with Ireland's climate targets.
Over the longer term, as set out in the NDP Review, DPENDR will examine the role that the Infrastructure Guidelines can play in the achievement of broader environmental objectives and in support of the national commitment to achieving net zero greenhouse emissions by 2050. 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.
