The Government will open applications in the coming weeks for a new €500m Climate Action Fund to "anyone with an innovative idea to meet our climate and efficiency targets," Minister for Climate Action Denis Naughten said this Wednesday.

He cited projects "heating our homes and businesses using farm and food waste" as an example of those eligible for funding, whether they are proposed by "small rural communities or big global businesses".

Minister Naughten was speaking at the launch of the climate section of the Government's Project Ireland 2040 long-term investment plan in Dublin, alongside An Taoiseach Leo Varadkar, Minister for Agriculture Michael Creed, Minister for Finance Paschal Donohoe and Minister for Transport Shane Ross.

A future in which biogas is produced from agricultural residues, or where our homes and farms become net exporters of electricity

"This fund that we are launching today could result in support for projects which would crystallise a future in which biogas is produced from agricultural residues, or where our homes and farms become net exporters of electricity through the adaptation of smart metering, smart grids and small-scale renewable technologies," Minister Creed said, encouraging applications.

While recognising that greenhouse gas emissions from agriculture have increased in recent years, he added: "The pathway to a low-carbon transition in the agricultural sector is based on an approach to carbon neutrality which, crucially, does not threaten our capacity for sustainable food production."

Taxation

The Climate Action Fund will be part-funded by the petroleum products levy of 2c/l on fossil fuels and the Government intends to replenish it in the future.

Minister Donohoe said he would examine taxation options for climate action in the coming months. A broad-based carbon tax as recommended by last year's Citizen's Assembly came up again in recent political discussions.

An Taoiseach Varadkar said that Ireland faced a more difficult climate change transition than other countries partly because of its "large farming sector", but added that he was determined to tackle this "existential challenge of our generation".

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