Green Budgeting
-
Ó: An Roinn Caiteachais Phoiblí, Seachadta ar an bPlean Forbartha Náisiúnta, agus Athchóirithe
- Foilsithe: 18 Meán Fómhair 2023
- An t-eolas is déanaí: 8 Eanáir 2025
Ireland committed to the implementation of a series of progressive green budgeting reforms in Budget 2019 by both the Department of Public Expenditure and Reform and the Department of Finance. The purpose of these reforms is to better embed climate and environmental goals within the budgetary process, with a view to improving outcomes. Progress to date includes:
- The launch and regular issuance of Irish Sovereign Green Bonds by the National Treasury Management Agency (NTMA);
- The development and continued implementation of a system of identification and tagging of climate and environmental expenditure in the Revised Estimates Volume;
- Assessment of the contribution Exchequer-funded capital spending in the National Development Plan (NDP) will make to a range of climate and environmental outcomes;
- Annual reporting of the use of additional carbon tax revenues for climate and just transitionary measures; and
- A review of fossil fuel subsidies and other potentially climate-harmful supports.
In support of these reforms, Ireland is an active participant in the OECD Paris Collaborative on Green Budgeting, and in the Coalition of Finance Ministers for Climate Action, and engages in training and exchange initiatives relating to green budgeting with EU institutions and other Member States, aiming to share its expertise and learn from international best practice in this area. Ireland currently chairs the OECD Paris Collaborative on Green Budgeting.
As part of the performance budgeting framework, green budgeting builds on the implementation of equality budgeting and the development of wellbeing budgeting, as committed to in the Programme for Government – Our Shared Future.
The Department of Public Expenditure, National Development Plan Delivery and Reform’s Statement of Strategy 2023-2025 outlines the Department’s mission is to drive the delivery of better public services, living standards and infrastructure for the people of Ireland. As part of this, the Department’s aim under Strategic Goal 2 is to
Lead performance budgeting to enhance transparency and accountability, and strengthen the budgetary process through greater use of evidence and delivery of key outputs and outcomes in climate action, wellbeing, equality and sustainable development.
Green budgeting initiatives can play an important role in achieving this and will make Government action on climate change more transparent to citizens. They will also raise awareness and understanding of the specific impacts of individual climate and environmental policies. Ultimately, green budgeting has the potential to induce changes to policy making that will result in improved environmental outcomes.
Key publications:
- Guidance Note for the Identification of Climate & Environmental Expenditure at REV 2025
- Climate and Environmental Expenditure in REV 2024
- An Introduction to the Implementation of Green Budgeting in Ireland (2018)
- Climate and Environmental Assessment of the National Development Plan Review (2022)
- Review of Fossil Fuel Subsidies and Other Potentially Climate Harmful Supports (2023)
- Use of Carbon Tax Funds 2024 (2023)
- Climate and Environmental Expenditure in REV 2025
The Department of Finance also uses green budgeting tools in relation to fiscal analysis and assessment of tax/tax expenditures.
Please see:
• DFIN - Climate Action and Analysis
• DFIN - Green Budgeting