Dáil Éireann Debate, Tuesday - 21 September 2021
72. Deputy Jennifer Carroll MacNeill asked the Minister for Finance the progress on implementing the Finance Action Plan 2021 with specific priority for sustainable finance; and if he will make a statement on the matter. [44683/21]
Amharc ar fhreagraSustainable finance is a priority for me as Minister for Finance and is one of three priorities that apply across all of the pillars in which the work of the Ireland for Finance strategy for the development of the international financial services is framed.
The Ireland for Finance Action Plan for 2021 sets out ten action measures that deal specifically with developing and strengthening Ireland’s capacity and operating environment for sustainable finance. The table below sets out the summary of those action measures as published in Ireland for Finance Action Plan 2021: Building on Resilience , together with the name of the lead organisation and deadline for each of them.
|
No. |
Title and Description of Action Measure |
Lead Organisation |
Deadline |
|
1 |
Develop a National Sustainable Finance RoadmapDevelop a proposal for a Sustainable Finance Roadmap to guide Irish green and sustainable finance activities in the context of the European Green Deal and forthcoming Renewed Sustainable Finance Strategy. Analysing current trends and future needs, when approved, the Roadmap can guide Irish green and sustainable finance activities across the themes of Operating Environment, Technology and Innovation, Talent, and Communications and Promotion. In partnership with industry bodies and the Department of Finance, an output of the Roadmap will see Sustainable Finance Ireland and partners engage with senior decision-makers in Europe, Asia, and North America to showcase and promote the scale and sophistication of Ireland’s emerging green and sustainable finance activities, underpinning Ireland’s emergence as a green and sustainable finance product and services ‘Living Lab’. This is to be launched during Climate Finance Week Ireland 2021. |
Finance Green Ireland Committee of Sustainable Finance Ireland |
Q3 |
|
6 |
Engage at EU level on sustainable finance developmentsThe Department of Finance will monitor and seek to influence EU developments on sustainable finance, including initiatives emerging from the European Commission’s forthcoming Renewed Sustainable Finance Strategy. |
Department of Finance |
Quarterly |
|
11 |
Continue to raise awareness of the responsible investment agendaAs a key platform for advancing the environmental, social, and corporate governance (ESG) agenda, the Sustainable and Responsible Investment Forum Ireland (SIF Ireland) will continue efforts to raise awareness of the ESG agenda across all Irish-located asset classes by means of its dedicated ESG best practice and digital library web portal, while supporting the Sustainable Finance Skillnet roll out of an ESG-focused skills development programme. Continuing to measure progress on advancing the agenda and identifying barriers to continued growth, SIF Ireland will take a deep dive into the ESG data agenda. SIF Ireland will also promote the merits of the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations. The implementation of the recommendations represent best practice for companies and opens up access to more sustainable pools of growth capital while addressing the needs of investors for greater transparency. In addition, in support of biodiversity action, SIF Ireland will explore outstanding issues with assessing and managing biodiversity impacts, dependencies and risks for the financial sector. |
Sustainable and Responsible Investment Forum Ireland |
Q4 |
|
18 |
Continue the rollout of Ireland’s sustainable finance innovation programme supporting the development of new IFS environmental, social, and governance products and servicesIn light of the European Green Deal and the forthcoming EU Renewed Sustainable Finance Strategy, an increasing number of firms in Ireland are exploring the development of new products and services in support of the sustainable finance and the broader ESG agendas. Sustainable Finance Ireland will accelerate the rollout of this development via a dedicated intrapreneurship programme, in support of Irish firms’ efforts, thus contributing to Ireland’s emergence as a ‘Living Lab’. |
Sustainable Finance Ireland |
Q4 |
|
25 |
Develop a portfolio of sustainable finance programmesIn 2021, the Institute of Banking will launch a sustainable finance skills matrix, and associated learnings and programmes, that addresses the current and future skills need of the financial services sector. |
Institute of Banking |
Q2 |
|
27 |
Promote a Certificate in ESG InvestingCFA Society Ireland is always looking at innovation in financial and investment education and has recently launched a Certificate in ESG Investing. This certificate is designed for people who want to be recognised as leaders and experts in this area and who want to integrate environmental, social, and corporate governance (ESG) factors into the investment process. CFA Society Ireland will continue to promote uptake of this certificate in Ireland. |
CFA Society Ireland |
Q3 |
|
32 |
Deliver training programmes in sustainable finance and responsible investment supported by the Sustainable Finance SkillnetIn partnership with industry bodies, Sustainable Finance Ireland, via Sustainable Finance Skillnet, will continue to assess the demand and support the development of capacity-building programmes and qualifications where required in order to expand the market for sustainable finance and responsible investment in Ireland across key capital market segments, including banking, insurance, asset management, asset ownership, and funds. |
Sustainable Finance Skillnet |
Q4 |
|
44 |
Support the UN-convened Financial Centres for Sustainability global activitiesSustainable Finance Ireland will continue to support the UN-convened Financial Centres for Sustainability (FC4S) network as it works to accelerate global financial centres activities alignment with the Paris Agreement. This will be achieved via Sustainable Finance Ireland’s membership of the FC4S Network, plus a senior staff secondment to the FC4S Secretariat. Dublin will also host the FC4S Europe node office. |
Sustainable Finance Ireland |
Q4 |
|
45 |
Co-host Sustainable Finance Day Summit 2021Showcasing Ireland’s commitment to mobilising capital market participants in support of meeting the Paris Agreement and UN Sustainable Development Goals, Sustainable Finance Ireland will co-host the Sustainable Finance Development Day Summit, in partnership with the Department of Finance, the Department of Foreign Affairs, the World Bank, other multilateral agencies and the UN-convened FC4S, in Dublin, June 2020. |
Sustainable Finance Ireland |
Q2 |
|
46 |
Co-host Climate Finance Week Ireland 2021With COP26, the 26th UN Climate Change Conference, taking place in 2021, Climate Finance Week Ireland 2021 preparation will be focused on the important role that Irish-located financial service sector firms can play in support of the COP26 ambitions. Including Climate Finance Week Ireland 2021, this will be realised via a year-long public–private sector ‘Road to COP26’ campaign. It will focus on raising awareness among financial service sector firms that are located in Ireland on the importance of COP26 and how such firms can support this agenda, and it will highlight current Irish COP26-related activities that are already ongoing. |
Sustainable Finance Ireland |
Q3 |
Progress on implementing the action measures is reported to my colleague, the Minister of State for Financial Services, Credit Unions and Insurance, on a quarterly basis and considered at the quarterly meetings of both the Ireland for Finance High Level Implementation Committee and the Ireland for Finance Joint Committee.
Three of the ten action measures were required to report on progress in the first or second quarter of the year – action measures numbered 6, 25, and 45; the remaining seven action measures fall due for reporting until the end of the third or fourth quarters.
Two of the action measures for the first two quarters were reported as being ‘on track’ at the end of the relevant quarter: action measures 6 and 25.
Action measure 6 dealt with engaging at an EU level on EU developments, including negotiations on legislative measures. In that context, my Department has worked with the European Commission and the other EU Member States on agreeing science-based standards for climate change adaptation and mitigation under the Taxonomy for sustainable activities. The EU Sustainable Finance Disclosures Regulation has been implemented in Irish law. My officials have started negotiations on the Commission’s proposal for a European Green Bond standard – a label that corporates and sovereigns could voluntarily use to demonstrate the credentials of their products. Finally, my officials have engaged in the development of the European Commission’s renewed Sustainable Finance Strategy, and also facilitated consultation on this new Strategy.
Action measure 25 is the development by the Institute of Banking of a portfolio of training programmes in sustainable finance. The Institute of Banking advises that it is planning to publish details on a portfolio of sustainable finance programmes for the financial services sector after the National Sustainable Finance Roadmap has been published, which is expected later this year. The development of the skills matrix is being addressed in the context of the roadmap, where the Institute of Banking chairs the Skills Working Group.
The third action measure originally planned for reporting in quarter 2 is numbered 45 in the Action Plan, and it deals with the hosting of Sustainable Finance Day Summit 2021. That measure is led by Sustainable Finance Ireland, an organisation working to advance the sustainable financial agenda. The event was postponed due to COVID-19. The topic will be covered during the series of events for Climate Finance Week Ireland, which will run from 11 to 15 October.
The remaining seven action measures are due to report progress at the end of the third and fourth quarters this year.
The minutes of the quarterly meetings of the two committees that monitor progress are published on the Department of Finance website shortly after they are approved at the subsequent meeting. The minutes of the March 2021 meeting of the High Level Implementation Committee are available at www.gov.ie/en/collection/f412d5-public-sector-high-level-implementation-committee-hlic-minutes/ and the minutes of the March 2021 meeting of the Joint Committee are available at www.gov.ie/en/collection/4b2aa7-minutes-of-the-ifs2020-joint-committee-jc-meetings/ . The minutes of the meetings for the second quarter that was held in June will be published once they are approved at the next meetings at the end of September.
We have committed to ambitious and challenging climate action targets, through the Paris Agreement, EU level strategies and, domestically, the Climate Action and Low Carbon Development Act 2021.
The public sector must play a significant role, but it cannot face this mammoth task alone. At an EU-level, Ireland is engaging closely with the European Commission and our fellow Member States to set shared standards that will encourage and facilitate increased private sector financing for the key investments to help us achieve our shared climate goals.
Ireland strongly welcomes the European Commission’s renewed Strategy, which shows ambition that is much-needed to further expand and embed the reach of sustainable finance into our economies and financial systems.
The public sector cannot address the climate crisis alone; our progress at EU level to date, and this Strategy, are important actions to encourage and facilitate key investments to help us achieve our targets.
