AQW 23057/17-22
Mr John Blair
Alliance Party
South Antrim
Tabled Date: 23/09/2021
Answered On Date: 06/10/2021
Priority Written: No
Question:
To ask the Minister of Agriculture, Environment and Rural Affairs to detail what funding bids his Department has made to support (i) farmers; and (ii) the wider agri-food sector in preparation for the introduction of climate change legislation.
Answer:
In bringing forward a Climate Change Bill for Northern Ireland, I fully recognise that the changes needed will require investment by government, by the private sector and by individuals. I have been guided throughout this process by the Committee for Climate Change who have indicated that we need to be prepared to invest substantially to meet the challenge of reducing greenhouse gases within our economy. The majority is expected to come from the private sector but the public sector contribution will be significant. This goes much wider that agriculture and food and, while challenging, presents many opportunities to do things better. I am seeking to have Green Growth and Climate Action recognised as a strategic priority for the Executive for the next Budget period which is due to cover the three years to 2024-25 and will be making substantial bids to support a Green Growth agenda going forward. This will include bids to support farmers and the wider agri-food sector who will have a major part to play and will need government support in areas such as research and development and innovation. In addition we will access new and emerging funding opportunities for climate action from national and international sources. At this stage no funding bids have been made in respect of the introduction of climate change legislation. As you will be aware there are currently two draft Climate Change Bills passing through the Assembly – my Executive Climate Change Bill and the Private Members Climate Change Bill which you have co-sponsored. The available evidence suggests that aiming for the 2045 net zero target in the Private Members Climate Change Bill will have highly damaging impacts for farmers and the agri-food sector and this will therefore impact on the level of support required. I would point you towards the recent KPMG report on the impacts of the Private Members Climate Change Bill which clearly details the potential for hugely negative consequences for farmers and the agri-food sector. Given the uncertainty around what emissions reduction target we will be aiming for, the actual cost of introducing policies to meet the provisions set out in legislation is hard to predict. My Department has prepared a draft Regulatory Impact Assessment (RIA) for my Executive Climate Change Bill (Climate Change (No. 2) Bill). In summary the indicative net cost between the years 2022-2050 (including meeting the at least net 82% emissions reduction 2050 target) is estimated to be over £4 billion; or in yearly terms an approximate £140 million cost per year. The Private Members Climate Change Bill does not currently have a RIA that would provide an assessment of the associated costs to meet net zero by 2045. However a net zero by 2050 target, a whole five years later than Private Members Climate Change Bill target, is predicted to cost a significant indicative £30 billion plus between 2022-2050. That is an approximate annual cost of over £1 billion per year.
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