Paul Murphy urges review of Ireland's fossil fuel investment links
Paul Murphy challenged Ireland's role in financing fossil fuels and damaging agribusiness in the Global South, citing an ActionAid report that found Irish-registered investment managers hold $6.2 billion in related bonds and shares, with the top six investments in oil and gas. He called for a review of the 2018 Fossil Fuel Divestment Act to broaden its scope to fossil fuel use, include indirect financial instruments, and extend beyond the Ireland Strategic Investment Fund to private banks and funds based here in Taxhaven, Ireland.
Fossil fuel investments in the Global South
The ActionAid report referenced by Paul Murphy identified $6.2 billion in bonds and shares held by investment managers registered in Ireland that are attributable to fossil fuels and agribusiness in the Global South, with the largest holdings in oil and gas companies. He questioned how those investments align with Ireland's emissions and climate finance commitments.
Call to review the Fossil Fuel Divestment Act
Paul Murphy urged a review of the 2018 Fossil Fuel Divestment Act to broaden its remit beyond exploration to include fossil fuel use and to capture so-called indirect investments through financial derivatives, hedge funds and similar instruments. He also called for the Act's application to be widened beyond the Ireland Strategic Investment Fund to cover private finance flows from the thousands of banks and funds based here in Taxhaven, Ireland.
School transport and low-emission travel
He agreed with Deputy Sullivan that school transport has a role in reducing emissions by shortening journeys and cutting car trips, and highlighted the transition to electric and hydrogen buses. He noted a visit to Wright Bus in Ballymena, welcomed the phasing out of internal combustion engine buses, and said walking or cycling to local schools can also cut emissions. He added that school transport problems are being reported across constituencies and that the minister is working on solutions.
Taoiseach's remarks on emissions and ambition
In response, the Taoiseach cautioned that emissions should be viewed on a per capita basis given recent population growth and said Ireland is doing better than sometimes perceived, placing around mid-table in independent rankings. The Taoiseach said Ireland is not a laggard anymore but affirmed a desire to become a leader on climate in future years.
Climate finance and sovereign fund ethics
The Taoiseach said he had not read the ActionAid report but reiterated a government commitment to over €250 million a year in climate finance. He stated that system change will require funding and bond markets and that Ireland can contribute, and he said the new sovereign wealth fund will be established with an ethical framework that will take fossil fuel production into account. He also argued that much private finance is only managed in Ireland and that simply moving fund management offshore would not necessarily benefit the environment.
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Teachta, ActionAid recently published a report about Ireland's involvement in financing fossil fuels and environmentally damaging agribusiness in the Global South. It found that investment managers registered in Ireland hold an incredible $6.2 billion in bonds and shares attributable to fossil fuels and agribusiness in the Global South. The top six investments are in oil and gas companies. How is that compatible with Ireland's emissions and climate finance commitments? We cannot continue to donate paltry levels of climate finance to the Global South on the one hand, while funnelling billions of environmentally destructive investments with the other. Will you commit to reviewing the 2018 Fossil Fuel Divestment Act to broaden its scope to include fossil fuel use, not just exploration, and to ensure so-called indirect investments through financial derivatives, hedge funds, etc., are included? The Act also needs to have a much broader scope beyond just the Ireland Strategic Investment Fund. It should be applied to all private finance flows from the thousands of banks and funds that are based here in Taxhaven, Ireland. I would like to thank the deputies for further questions. I agree with Deputy Sullivan, because school transport systems certainly have a role in reducing emissions if they reduce the length of journeys and, of course, if they reduce the number of journeys by car. Ideally, we will have electric buses and hydrogen buses, and we are very much moving to that model at the moment. I had the pleasure to visit Wright Bus in Ballymena, where they are making electric buses and hydrogen buses as we speak, and are phasing out the production of internal combustion engine buses. It is great to see that happening on the island of Ireland. Of course, another thing that can also help reduce emissions is people going to their nearest school, because therefore you are more likely to be able to walk or to cycle, which is the most climate efficient way of travelling, or if you cannot and have to go by car, it will be a shorter journey. So I think that needs to be borne in mind as well in any debate. But in terms of the general issue of the problems that people are facing with school transport, coming up all over the country, very much being fed back to me from constituency offices. I know Minister Foley is a praise and sees the situation, and she is working hard to find solutions. Just in relation to Ireland's greenhouse gas emissions, which are mentioned by some deputies, I think that when we examine them, we should also look at our emissions on a per capita basis. Ireland's population has increased considerably in the last 10 or 20 years, and if you look at the graph of our emissions per capita versus our total emissions, we are doing a bit better than maybe we think. Of course, with a rising population, with more people, you are going to have more emissions. If our population had been stable or falling, as it is in many other countries, we would be doing much, much better. I am not sure whoever believes in preaching our self-righteousness when it comes to climate action. We are behind where we need to be in terms of the objectives we have set for ourselves, and the UK arguably is doing better. They have reduced their emissions more than us. Notwithstanding the Prime Minister's due to the next recent policy changes. It was easier for them to do so. They had a lot of heavy industry and they were able to turn that off. It is tricky for us, given the way our economy is structured. But I did say in 2017, in my very first speech as Taoiseach in this House, that I wanted Ireland to go from being a laggard to a leader on climate. We are definitely not a laggard anymore. All of the independent bodies that do league tables and rate us and score us now accept that we are somewhere around mid-table. But I want us to be a leader. I think that can be done in the years ahead. On climate finance, I have not read the report that Deputy Murphy refers to. I do want to reiterate that we have made a very substantial commitment to climate finance, made by Michal Martin as Taoiseach, will be over 250 million euros a year. That is a not inconsiderable contribution, because climate finance is such an important part of the solution. The change that is going to have to happen, the system change, the revolution that is going to have to happen, has to be funded and needs bond markets. That is why Ireland can make a contribution to it. One thing we will examine as part of the establishment of our future Ireland fund, the new sovereign wealth fund that we are establishing, is an ethical framework around what it does and does not invest in. That will, of course, have to take into account fossil fuel production. But I would say in relation to the management of private finance here in Ireland, a lot of that is just managed here. Those funds will just be managed somewhere else. I do not think moving them offshore would actually have an appreciable benefit for the environment. Thank you very much.
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