gov - Passing of Fossil Fuel Divestment Bill demonstrates global leadership on climate change agenda

Minister of State at the Department of Finance, Mr. Michael D’Arcy T.D. today (Thursday) welcomed the passage of the Fossil Fuel Divestment Bill 2016 by Dáil Éireann. The Bill amends the investment mandate of the Ireland Strategic Investment Fund (ISIF) to both prevent it investing in, and requires it to divest from, fossil fuel undertakings.

Minister D’Arcy said:

“Passing this Bill is a real achievement and I commend Deputy Pringle for his initiative in sponsoring the Bill. I’d like to thank him for his considered and collaborative approach, and for his willingness to work with the Government to develop challenging yet workable proposals to ensure that the Ireland Strategic Investment Fund avoids investment exposure to fossil fuels, and divests from excessive exposure to them. The outcome of the extensive engagement between Deputy Pringle and my officials, in consultation with the ISIF, means that this Bill could be suitably amended and progressed through the Dail, where it was passed today.”

Commenting on the effects of the Bill, Minister D’Arcy said:

“Ireland is taking the opportunity to show real global leadership in a move away from fossil-fuel investment dependency. The real effects of the Bill will be felt if other countries follow Ireland’s lead in sufficient numbers – this will help drive demand for low-fossil-fuel investments at a global level and potentially stimulate investment in renewable and sustainable alternatives.”

ENDS

Notes to Editors:

In brief, the revised investment mandate will:

require the NTMA, as custodians of ISIF, to endeavour to ensure that it does not directly invest in a fossil fuel undertaking, and to divest from an investment which is or becomes a fossil fuel undertaking;
require the NTMA to endeavour to ensure that it does not hold assets of the Fund in an indirect investment unless it is satisfied on reasonable grounds that the indirect investment is unlikely to have more than 15% of its assets invested in a fossil fuel undertaking. Provision is also made that the Minister may by order prescribe a lower percentage threshold;
provide an exemption from the rules set out in respect of both direct and indirect investments, where the NTMA has satisfied itself that the investment is intended to be consistent with the national transition objective, implementation of the State’s climate change obligations, and Government policy in relation to climate change. The NTMA will be obliged to allude to the fact that the exemption is being used when announcing the fact of the investment concerned.

Passing of Fossil Fuel Divestment Bill demonstrates global leadership on climate change agenda – D’Arcy

Notes to Editors:

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