Dáil Éireann Debate, Thursday - 10 April 2025
7. Deputy Barry Heneghan asked the Minister for the Environment, Climate and Communications if his Department has carried out any cross-simulation or cost analysis of the fines Ireland may incur if it fails to meet its 2030 climate targets; his views on whether equivalent investment would be better directed towards domestic climate action measures rather than paying fines to the EU; and if he will make a statement on the matter. [18131/25]
View answerGo n-éirí leis an Aire ina phost nua. Has the Department carried out any cross-simulation or cost analysis of the potential fines that we are going to face if we do not reach our 2030 climate targets? Does the Minister agree that we should put the equivalent investment into our country rather than paying other EU countries, as a tap on the back, for the hard work they did? I want to know what the Department is doing because we need to do it now, at the start of this programme for Government, rather than in five years' time.
Gabhaim buíochas leis an Teachta agus go n-éirí leis ina phost nua. As part of EU efforts to tackle climate change, Ireland has accepted specific emissions reductions targets for the period to 2030, set by the EU effort sharing regulation, ESR. These targets are also in line with domestic commitments in Irish law as set out in the climate Act 2021. Ireland can meet these targets by reducing emissions and through additional compliance but it is going to be very challenging. Let us be straight about that. We are going in the right direction but I am acutely aware that they are very exacting targets. Compliance options are provided for in the ESR framework, including the purchase of allowances from other member states that have over-performed on their own targets, but if we look at other EU member states and their projections out to 2030, I do not think there will necessarily be many of them, to be honest. The approach enables flexibility among member states to help achieve targets as efficiently as possible.
To answer the Deputy's question directly, there is no framework for the fines. I have read the Economic and Social Research Institute, ESRI, reports and other independent reports on what the fines might be. At a European level, a discussion needs to happen about ensuring that states invest further, as Deputy Heneghan has rightly said. There is no framework at the moment that details what the structure of any fines will be. If we look at the existing measures we are taking, there were emissions reductions last year of about 6.8% and about 2.2% in the previous year, while our economy was growing. We are also seeing a continued increase in renewables. We are certainly on the right pathway but I want to accelerate that. I will be having discussions with European colleagues around the framework for any potential fines. However, the EU, instead of just fining states, must look at ways to ensure that states invest further in their energy infrastructure, in measures to reduce emissions and in renewable energy. I agree with the central core of Deputy Heneghan's contribution.
In the context of the climate action that we need to take, there is really only one show in town for Ireland, and we all know that is our offshore renewable energy. While I welcome the fact that there has been a €90 million investment in Cork port, it is not enough. We need to be investing hundreds of millions of euro in our ports because we need to extend them out and widen them. Otherwise, the giant vessels that are going to be delivering the components for the future of offshore renewable energy development will not be able to get into the ports and will not be as efficient as possible. I know the Minister is well aware of that. Will the Department commit to investing hundreds of millions of euro right now to prevent us facing billions in fines in the future? It is the young people up here who will be paying taxes on this. It is not going to be a one-time thing. This is going to be our future if we do not reach our targets. We will be fined again and again. We need to solve this now, at the start of the Government's term, rather than in five years' time.
The future is renewables and particularly offshore renewables. We have six projects off the east coast in planning, as the Deputy knows. We have our first designated maritime area plan, DMAP, through, which is in the south east. I will be bringing forward proposals to the Government in the coming weeks to accelerate the DMAP process. I have met stakeholders, including in the development sector, and will meet representatives of the Climate Change Advisory Council, CCAC, this afternoon. It is critical but we have a resource that we can use, unlike other countries that do not have the opportunity we have. Next week, I will be attending the switching-on of the interconnector. Our interconnectors with continental Europe are also critical.
There is the Infrastructure, Climate and Nature Fund and the review of the national development plan, NDP, is under way. It will require significant investment by the State in our infrastructure. I am visiting the Port of Cork, coincidentally, on Monday and I have been in Shannon Foynes as well. The latter's master plan is completed. We need to get the port infrastructure in place. Cork port is done and I commend it on the work it has done. Planning is well advanced in Shannon Foynes and in ports on the east coast.
I welcome the fact the Minister has been engaging with me on private wires legislation and I know he has a huge job ahead of him. I wish him the best of luck in his phost nua.
The Government is currently paying for research, funded by Research Ireland and conducted by Dr. James Carton, my previous professor in sustainability engineering at DCU and his colleagues at UCD. What they are telling us is that we now need to invest hundreds of millions, if not billions, to ensure this is done. Will the Minister's office release a statement outlining what is going to be done? This is not just a chance to decarbonise our energy system. It is also a chance to save ourselves billions that could be invested in schools, hospitals, Gaelscoileanna, disability services and so on. It is going to save the Exchequer millions. I understand that it is very hard for the Department to put millions into ports because there is an issue there. Can that be removed so that the Government can pump money into the ports? We do not have the infrastructure to take in the equipment. If we are serious about changing the LNG plant to a green hydrogen plant, we need to make the investment such that there will not be a bottleneck for this energy.
The State is investing tens of millions in this sector right now. We have put the legislative infrastructure in place. That was done in the previous Dáil. I had the honour of bringing forward the Maritime Area Planning Act, which was passed in this House, although it was not supported by everyone. It saw the establishment of Maritime Area Regulatory Authority, MARA. I will meet representatives of MARA next Wednesday to discuss how we can streamline our consenting process. Next week, I will be bringing to Cabinet the Climate Action Plan 2025, which was delayed simply because of the general election. That will be brought forward and published. It outlines what we are doing this year.
I am also working on an energy and climate strategy and have the full support of the Taoiseach and the Tánaiste in regard to the acceleration of our green transition. The focus has to be on renewables and the offshore renewable sector will be a game changer for this country for decades. I want to secure our own energy, give us an opportunity to grow our economy and our society and potentially become an energy exporter. We are not 100 years away from that at all. We are looking at having the first of the offshore renewable wind farms up and running, potentially by the end of the decade or certainly by the early 2030s, with many more coming on stream after that.
