Farm schemes could be at risk if agriculture fails to meet its emissions reduction targets.

Taoiseach Micheál Martin has warned that Government departments and associated sectors will have to pay where climate change targets are missed.

The State is liable for EU fines if it fails to meet its legally binding emissions reduction targets.

This puts Pillar II farm schemes in the firing line, should agriculture fail to sufficiently reduce carbon emissions.

Some €1.75bn in Exchequer funding is committed to agri-environment programmes under the new CAP 2023-2027.

In contrast, penalties cannot be imposed on Pillar I direct farm payments as this scheme is fully funded by the EU, and any clawback returns to Brussels.

The Irish Farmers Journal understands that any climate-related penalties levied on agriculture could hit schemes which are designed to reduce carbon emissions but are deemed to have not performed.

The Taoiseach, launching the Climate Action Plan last week, warned that any costs which arise from industries failing to meet their emissions reduction targets will be “levied back on the [relevant] department and the sector”.