Uncertainty over how much of the £2.3 billion cost of Stormont's Climate Change Act has been considered by Executive

Chair of the DAERA Committee Tom Elliott has told the News Letter that provisional figures suggest the public sector cost of the Climate Action Plan (CAP) – a result of the legislation – is £2.3 billion, up to 2027.

The Climate Action Plan sets out Northern Ireland’s approach to meeting the ‘carbon budget’ for 2023 to 2027 through a set of proposals and policies for emissions reductions.

It will also establish a ‘pathway’ towards net zero carbon emissions by 2050.

Mr Elliott says the cost would be £1.3 billion in capital and £1 billion resource expenditure. He said: “it is imperative that these costs are factored into departments budgets.

“It is vital that plans are in place to ensure that budgets are available and have been factored into departments budgets for this massive expenditure and investment. Given that we are hearing the current UK government financial package is not enough for the Executive, this will surely be an added financial strain on departments.

“This cost does not include the expenditure that will be required by the wider public, householders and businesses to implement this plan.

“This demonstrates the huge financial imposition that the Climate Change Act will impose on the Northern Ireland public.”

The Climate Change Act was passed by Stormont in 2022 – but hasn’t been implemented due to the lack of an assembly or a functioning executive.

Therefore, the Executive won’t yet have a full picture of the costs because the structures and policies haven’t yet been put in place.

The Act creates a target for net-zero greenhouse gas emissions by 2050, with a reduction of at least 48% in net emissions by 2030.

A climate change commissioner and a public body were to be set up to scrutinise changes – but neither of these have happened in the absence of Stormont.

The law also places a duty on DAERA to establish a ‘Just Transition Commission’ to oversee implementation and provide advice to departments.

None of these bodies exist, but by law they must be established. It is only then that the full costs to the Executive will become clear.

The 2022 law was a result of political wrangling over whether a department of agriculture bill – or a more radical one brought by the former Green Party leader Clare Bailey – would proceed.

Ms Bailey dropped her proposals, and said the DAERA bill – created under the DUP minister Edwin Poots – was a “democratically developed bill and now is the time we ensure its delivery”.

The issue was raised by Mr Elliott with the First Minister Michelle O’Neill in the Assembly in its first sitting. He said: “Climate change has not been mentioned at all. I noticed in recent correspondence that it is indicated that it will cost Departments £2·3 billion up to 2027 just to implement the climate change actions. Has any thought been given to that with regard to the additional finances that are required?”

Ms O’Neill said: “We will have many challenges to grapple with, but, if we do not fix the fundamentals of the funding formula in its entirety from this day-1 position, we will be in trouble when it comes to dealing with all the things that we need to deal with, not least the climate catastrophe that we now face.”

The government said this week that it “has committed to providing a needs-based factor in the Barnett formula for Northern Ireland to be set at 24% from 2024-25. Based on forecasts, this is projected to generate £785 million over the next five years”. The costs of the climate change bill would far exceed this additional money.

The News Letter asked the Department of Finance costs of the Climate Change Act been factored into spending plans. A spokesperson said “It is for individual departments to ensure that the cost of the Climate Change Act are factored into their spending plans. Costs relating to the 2024/25 budget can be considered by the Executive as part of the budget process."

DAERA minister Andrew Muir said he is committed to delivering on the requirements of the Climate Change Act – adding that “it will require significant effort and transformation across all aspects of our economy and society”.