I propose to take Questions Nos. 15 and 16 together.
The Climate Action and Low Carbon Development (Amendment) Act 2021 set out legally-binding emissions reduction targets for Ireland to reach by 2030 and 2050. Ireland is now required to reduce its greenhouse gas emissions by 51% by 2030, relative to 2008 levels, and to reach net-zero emissions by no later than 2050. The 2021 Act also introduced a strengthened climate governance framework with requirements to prepare and implement carbon budgets and sectoral emission ceilings. The adoption of these 5-year budgets and ceilings in 2022 has provided for more urgent emissions reduction targets, disaggregated on a sectoral-basis, that provide an emissions reduction pathway to our 2030 and 2050 targets.
The underlying analysis within Climate Action Plan 2021, which was published in November 2021, included a modelled estimate, based on available information at the time of writing CAP21, that suggested the delivery of CAP21 for the period 2021 to 2030 could require approximately €125 billion to be mobilised in key technology areas, and that this investment would need to come from both public and private sources.
Following the enactment of 2021 Climate Act and the adoption of the carbon budgets and sectoral emission ceilings in 2022, Climate Action Plan 2023 included a revised estimate of approximately €119 billion in incremental and redirected capital investment in low-carbon technologies and infrastructure for the period 2022 to 2030 to support the achievement of our emission reduction targets. Again, this funding comprises both private and public sources of investment. It must be noted that the total costs will be dependent upon the various policy pathways selected as we further develop and implement our climate action plans and long-term strategies.
Both Climate Action Plans also include an overview of the various potential benefits and costs relating to Ireland’s transition to a carbon-neutral and climate-resilient society. Further assessment and appraisal of climate policies, measures and actions will be required at a sectoral-level and must be in line with the Government’s value-for-money guidelines, as set out in the Public Spending Code.
Work will continue to further determine and assess the potential costs and benefits of our transition to carbon-neutrality. This work will require inter-Departmental engagement and collaboration, as well as contributions from State Agencies and research organisations with expertise in the relevant policy areas.
