Dáil Éireann Debate, Thursday - 12 February 2026
67. Deputy Pa Daly asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation to provide an update on the Climate and Nature Fund; the number of applications has he received; the number of have been approved; how much money has been drawn down; and if he will make a statement on the matter. [10763/26]
View answerThe Future Ireland Fund and Infrastructure, Climate and Nature Fund Act 2024 established the Infrastructure, Climate and Nature Fund (ICN Fund).
The purpose of ICN Fund is to support the economy in times of exceptional need and to support Ireland’s transition to a low carbon economy through the funding of designated environmental projects.
A total of €2 billion will be invested in the Fund each year from 2024 to 2030 building up to an overall fund of €14 billion.
The Fund will support expenditure by the State:
• In any year from 2026, where there has been, or is likely to be in the subsequent year, a significant deterioration in the economic or fiscal position of the State. 25% of the ICN Fund can be used in the given year for this purpose; and
• In the years 2026 to 2030, on designated environmental projects to address climate change issues and nature and water quality degradation. 22.5% of the Fund may be drawn down to support designated environmental projects in any given year from 2026 to 2030, up to a cumulative maximum of €3.15 billion.
Designated environmental projects will be those that contribute, either directly or indirectly, or are likely to contribute to:
• the reduction of greenhouse gas emissions,
• an improvement in water quality,
• an improvement in nature and biodiversity objectives.
More detailed criteria are outlined in Section 20 of the Act.
As outlined in the Programme for Government 2025, the review of the National Development Plan in July encompassed all public capital investment, including that available from the ICN Fund. The NDP Review confirmed the following indicative allocations to Departments over the period 2026-2030:
• €2 billion for the Department of Transport to support low-carbon transportation, such as MetroLink;
• €500 million for the Department of Climate, Energy and the Environment (D/CEE) to fund projects/programmes that support climate mitigation and renewable energy development;
• €650 million for the Department of Housing, Local Government and Heritage (D/HLGH) for projects and programmes that will support improvements in water quality.
The specific projects and programmes to be funded from within these allocations are a matter for the relevant Ministers who must prioritise eligible projects and programmes to fund from within their allocations, having regard to their sectoral priorities and the criteria for designated environmental projects as set out in the Act.
This formal designation process commenced in late 2025, and informed a new Appendix included in the Revised Estimates Volume (REV) which outlined total allocations from the ICN Fund for 2026.
The relevant Ministers now must formally designate, the environmental projects that they intend to fund from their ICN Fund allocations. This formal designation process remains underway. Later this year, Departments will be required to submit an update on their ICNF expenditure and project delivery for Q1.
Funding for designated environmental projects will also be confirmed in the Revised Estimates Volume (REV) in each year between 2026 and 2030.
