Dáil Éireann Debate, Wednesday - 20 September 2023
215. Deputy Claire Kerrane asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will provide an update on the transfer of Brexit adjustment reserve funding to the RePower EU fund; and if he will make a statement on the matter. [40337/23]
View answerThe European Union’s Brexit Adjustment Reserve (BAR), provides support to counter the adverse economic, social, territorial and, environmental consequences of the withdrawal of the UK from the European Union.
The Government has made significant allocations across a range of sectors to counter the effects of Brexit, both before and during the 4-year BAR period. In order to be eligible for BAR funding, the expenditure must fall within the BAR eligibility period for expenditure that runs from the 1st of January 2020 to the 31st of December 2023.
The application for BAR funding must set out the negative impacts of the withdrawal of the UK from the European Union and how the measures carried out under the Fund alleviate the adverse consequences. The Government has, therefore, over a series of budgets, allocated BAR funding across a number of impacted sectors in order to mitigate those adverse effects of Brexit and to adapt to regulatory changes.
REPowerEU is the EU’s plan to rapidly reduce dependence on Russian fossil fuels, boost the independence and security of the Union’s energy supply and accelerate the green transition. In practical terms, REPowerEU will be financed via the Recovery and Resilience Facility (RRF). Ireland’s allocation in grants under REPowerEU is worth circa €90m.
The EU provided that Member States might apply for approval to transfer some BAR funding to the REPowerEU initiative. The Commission has provided approval for the transfer of €150 million bringing the total amount available under REPowerEU to €240 million.
Following Commission approval of the transfer of €150 million, Ireland’s BAR allocation is €1.015 billion. Ireland’s allocation now represents approximately 30% of the overall BAR fund, following transfers by other Member States to REPowerEU.
To access the REPowerEU funding, Member States, including Ireland, will be required to amend their National Recovery and Resilience Plans (NRRP) and add a specific chapter to outline the key investments and reforms to help achieve the REPowerEU objectives. A key consideration for any projects proposed is timely deliverability as failure to deliver on the agreed milestones and targets will directly impact drawdown of the allocated monies. Proposals must be in a position to deliver within the RRF timeline and meet the stringent management, reporting, audit and verification requirements. My Department has commenced informal discussions with the Commission and is engaging with Departments on potential proposals including from the Departments of Environment, Climate and Communications, Education, Transport, Agriculture, Food and the Marine, and the OPW. Following this engagement, Ireland’s proposed REPowerEU programme will be submitted for the formal Commission and Council assessments and approvals.
