Minister McGrath and Minister Donohoe Publish Future Ireland Fund and Infrastructure, Climate and Nature Fund Bill 2024
The Minister for Finance, Michael McGrath T.D., and the Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe T.D., have announced the publication of the groundbreaking Future Ireland Fund and Infrastructure, Climate and Nature Fund Bill 2024.
This bill follows the release of the General Scheme of the Bill in October 2023 and the commitment made in Budget 2024 to establish two new funds:
- The Future Ireland Fund
- The Infrastructure, Climate and Nature Fund
The Future Ireland Fund aims to address future expenditure pressures related to ageing, climate change, digitalisation, and other fiscal challenges. It will provide sustainable support for State expenditure from 2041 onwards. The fund will be fuelled by annual contributions from 2024 to 2035, with no limit on its potential size.
Under this plan, 0.8% of GDP will be invested in the Future Ireland Fund annually until 2035, alongside the transfer of approximately €4.1 billion from the dissolution of the National Reserve Fund in 2024. With contributions, GDP growth, and potential returns from investments, the fund is projected to grow to €100 billion by 2035.
The Infrastructure, Climate and Nature Fund is designed to ensure capital expenditure continuity throughout economic cycles. It will provide resources for spending during economic downturns, supporting counter-cyclical investment and designated environmental projects related to climate change, water quality, and biodiversity.
Key highlights of the bill include:
- An annual contribution of 0.8% of GDP to the Future Ireland Fund from 2024 to 2035
- Establishment of the Infrastructure, Climate and Nature Fund to secure capital expenditure
- Investment of €2 billion annually in the Infrastructure, Climate and Nature Fund from 2024 to 2030
- Dissolution of the National Reserve Fund, with its resources transferred to the new funds
- Responsibility for investment and management of the funds allocated to the NTMA, which manages the Ireland Strategic Investment Fund (ISIF)
Minister McGrath emphasised the importance of securing long-term public finances to meet future expenditure demands, while Minister Donohoe highlighted the funds’ role in supporting economic growth and addressing climate and nature challenges.
This landmark legislation represents a proactive approach to future-proofing Ireland’s economy and addressing critical environmental concerns, ensuring sustainable development and resilience for generations to come.
