Dail Éireann · 2024-06-27
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I ask the Minister to provide a detailed breakdown of where the EU just transition funding is to go; the reason it is being focused solely on the midlands instead of including areas like County Clare which are also losing fossil fuel power stations; and if he will make a statement on the matter. Ireland's EU Just Transition Fund programme, formally launched in April 2023, will provide €169 million, including €84.5 million of EU funding, until 2027 to support the economic transition of the midlands region.
The designated territory for Ireland’s programme was approved by the Government and by the European Commission and is aligned with the historical dependence of the region on commercial peat extraction for power generation as described in the territorial just transition plan which underpins the programme.
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I ask the Minister to provide a detailed breakdown of where the EU just transition funding is to go; the reason it is being focused solely on the midlands instead of including areas like County Clare which are also losing fossil fuel power stations; and if he will make a statement on the matter.
The EU Just Transition Fund is a new fund created under the 2021-27 EU budget period, operating within the framework of the EU cohesion policy. The fund’s single specific objective is to support the regions in the European Union that are most negatively affected by the transition to climate neutrality. In essence, the fund aims to address employment, economic, social and environmental impacts that come with the shift away from carbon-intense activities and to prioritise this support to the most affected regions of the EU.
Ireland's EU Just Transition Fund programme, formally launched in April 2023, will provide €169 million, including €84.5 million of EU funding, until 2027 to support the economic transition of the midlands region. The designated territory for Ireland’s programme was approved by the Government and by the European Commission and is aligned with the historical dependence of the region on commercial peat extraction for power generation as described in the territorial just transition plan which underpins the programme.
To date, €137 million of this funding has been allocated or is in the process of being allocated to projects through open calls in a variety of areas such as tourism infrastructure, including trails and supports for business in the tourism sector to grow the visitor economy in the midlands region; the bioeconomy demonstration initiative, which is designed to fund, pilot and demonstrate bioeconomy innovation in action within the midlands territory; supports for the implementation of the local economic and community plans and of the relevant regional enterprise plans within the territory; and electric vehicle destination charging infrastructure.
Most recently, I was pleased to note the announcement on 19 June by Fáilte Ireland of the award of over €32 million in investment grants for regenerative tourism projects as part of Ireland's programme. The regenerative tourism and placemaking scheme seeks to create transformative and unique experiences that benefit visitors, local communities and nature. I look forward to the delivery of these projects and to their positive impact on the economic and employment opportunities in the midlands region. Additional further announcements are expected in the coming months on the selection of projects under other schemes within the EU Just Transition Fund programme, including schemes relating to investment grants to tourism SMEs, peatland restoration, the bioeconomy and public transport electrification.
As the Minister has outlined, significant funding is being made available for Ireland in order to assist the regions and communities that are most negatively impacted by the transition to climate neutrality and to promote socioeconomic transition. Ireland is assessed to receive €84.5 million up to 2027 and the Government plans to match this funding with Exchequer resources. As the Minister alluded to, so far Fáilte Ireland has approved €32 million in grants under this scheme. Why is this funding being solely concentrated on the midlands? Why are counties, like my county of Clare, not being included considering, as I have mentioned, we are losing our fossil fuel power station in its historical format? Moneypoint has seen significant changes in recent years, especially in respect of its workforce, which has had an impact on employment opportunities in west Clare in general and Kilrush specifically.
The Deputy is right in saying that County Clare is not included. In conjunction with the European Commission, it was decided that it would involve counties Offaly, Laois, Longford, Westmeath and Roscommon as well as five additional municipal districts: Ballinasloe in County Galway; Athy and Clane-Maynooth in County Kildare; and Carrick-on-Suir and Thurles in County Tipperary. That is because our application and our approach very much targeted the switch away from extracting peat. Moneypoint is changing and will switch off coal-powered generation next year. However, it will continue to be a significant piece of energy infrastructure, initially in a transition phase using oil, but more significantly in the longer term as we develop offshore facilities, Moneypoint is very well placed. Given its location on the grid and ESB's capability, Moneypoint will have a very important future role in the energy system of this country. That is the reason County Clare is not included. It was about the counties that had previous peat-fired power generation and extraction. Managing a just transition for that particular sector was what we targeted.
I appreciate that the midlands needs that extra assistance and I appreciate what the Minister said in respect of Moneypoint, but I have outlined the employment opportunities for the community. Responses to parliamentary questions have shown that when it comes to the construction of the offshore wind farms at Moneypoint, there may be employment of up to 600 positions but outside that, employment opportunities available for the community are very unsure.
The most recent Pobal report showed that urban Kilrush is the most severely deprived settlement in County Clare. Urban Kilrush was the only area to be classed as extremely disadvantaged. Of a population of 306, only 6% are attending third level education, one in three are unemployed while 47% of households are recorded as lone parent families. I think there is a case for Clare to be included for funding to ensure a just transition for that community. I would also like to add that it is very far back west.
I take the Deputy's point about Kilrush. There are other towns across the country where we have particular difficulties. I believe this green energy revolution will benefit such towns. It will not always be the big projects. The Moneypoint development for offshore wind is a really large-scale project and it will take some time. However, there are immediate opportunities. Earlier in discussion with Deputy Gannon, I mentioned that we now have programme projects developing anaerobic digestion. The area around Loop Head, Kilrush and Kilkee might be the sort of location where that might fit in within the agricultural economy in that part of west Clare.
This is controversial and there are different views. In County Clare there has been a lot of controversy about the development of wind farms but that has the potential to bring benefits to the local community. While job numbers are not that large, increasingly employers and investors will be looking for access to clean power. County Clare is very well situated on the west coast to have that renewable power. It is not just the offshore energy generation; we need to look for other onshore opportunities and every county has that opportunity.