1. The Implementation of Green
Budgeting in Ireland
Laura Kevany
OECD Paris Collaborative on Green Budgeting
29th April 2019

2. The role of the Department of
Public Expenditure and Reform
To serve the public interest by supporting the delivery of
well-managed, well-targeted and sustainable public
spending through modernised, effective and accountable
public services.

3. The Introduction of Green
Budgeting in Ireland
Why green budgeting?
• Budgetary process is not a neutral administrative process but
reflects long standing societal choices
• Need to ensure budgetary processes are conducive to
effective decision making
• Builds on work on gender/diversity/equality budgeting

4. Meeting Ireland’s EU
2020/2030 targets
Ireland has
been exceeding
our annual
greenhouse gas
emissions limits
since 2016.

5. Ireland’s 2050 National
Policy Position
Climate Change Advisory Council’s illustrative linear trajectory towards 2050 National Policy Position (CCAC First
Annual Review of Climate Policy)

6. Why introduce Green
Budgeting practices?
Principal Objectives
• Transparency
 To give policy makers and the public insight into Government action on climate
change
• Effectiveness
 Provide better information for policy makers on the specific effects of individual climate
measures (and ultimately on the climate impact of other measures)
Facilitates reporting for investors in our Sovereign Green Bond

7. Ireland’s Budgetary cycle
We made the decision that green budgeting should be integrated
into existing budgetary procedures and documents rather than
stand alone “green budget statements”
Key Dates:
• October: Draft budget is published for the following year and presented to
the Dáil.
• December: The Revised Estimates Volume for the Public Service (also
called ‘the REV’) is published. It provides more detail on the allocations
that were announced in the Budget.

8. The First Step in the Process
• 2018: Identifying and “tagging” all Exchequer climate-related
expenditure
• This does not determine whether Govt spending on climate is sufficient
or indeed effective but is a necessary first step to answer these
questions
• Vehicle chosen - Revised Estimates Volume for the Public Service
• Key challenge – determining what constitutes “climate-related”
expenditure and agreeing this across Government

9. Methodological issues
• No clear internationally accepted definitions
• For climate finance and EU structural funds – Climate “Rio”
Markers used
• These consider a proportion of expenditure to be climate-related,
depending on the degree to which climate concerns are reflected in
programme objectives
• We rejected this approach as too imprecise e.g. research
budgets, water investment

10. Final Approach
• Definition: “Any expenditure which promotes, in whole or in part and
whether directly or indirectly, Ireland’s transition to a low carbon, climate-
resilient and environmentally sustainable economy.”
• A derivation of International Capital Markets Association definition used
for green bonds
However, in practice we applied a conservative approach to classification

11. Body Level One
Body Level Two
Body Level Three
Body Level Four
Body Level Five
11 Rialtas na hÉireann | Government of Ireland

12. Direct Exchequer Climate-
related Expenditure
• €1.61bn in direct Exchequer climate-related expenditure
• Includes only those expenditure items which we believe directly
contribute to emissions reductions
• In reality, there is significant other Govt expenditure on
climate matters:
• Support for innovation, upgrades to schools, school transport,
water investment
• These were reflected as narrative in the report

13. Lessons learnt
• Given the inevitable challenges of introducing green budgeting
practices, it will be an iterative process
• Start with a simple process that is scalable
• May not be tangible benefits initially, but each step will feed into
more impactful reporting in the long run & help to socialise climate
related reporting

14. Next steps for Green
Budgeting in Ireland
2019 measures likely to include:
• Further refining programme selection, trying to disaggregate
expenditure in areas where this wasn’t possible in 2018
• High level impact analysis of climate expenditure (how effective are the
identified measures at delivering emissions savings)
• Potential direct negative climate/environmental impacts of existing
Government spending

15. Contact us:
Laura.kevany@per.gov.ie
Ken.cleary@per.gov.ie