Almost €32 billion in fossil fuel investment was held by Irish-based subsidiaries of finance companies last year, a new report claims.
The sheer level of money involved ranks Ireland 14th in global terms and renders the State a “key global centre for investment”.
The research report, The Hidden Truth: Ireland’s Role in the Global Fossil Fuel Industry, is published by Trócaire and ActionAid Ireland on Wednesday.
The organisations are calling for direct regulation of financial institutions that would require them to adopt and implement transition plans aligned with the Paris Agreement on climate.
Are women paying more than men for everyday items? Oh let me count the ways
Michael Gaine: Case of missing Kerry farmer upgraded to homicide by gardaí
‘My future looks empty and lonely ... I should have invested more in friends, but it feels too late now’
Gerry Adams takes jurors in his defamation case against BBC on a very long stroll down memory lane
“Ireland is facilitating the reckless pursuit of profit by financial institutions and corporations, which continue to pursue further expansion of oil and gas in spite of all the warnings and at the expense of the planet,” said Siobhán Curran, Trócaire’s head of policy and advocacy.
“The carbon footprint of these financial flows is bigger than Ireland’s yearly emissions. This completely undermines efforts that are being taken to reduce emissions and ... means Ireland is playing an outsize role in fuelling the climate crisis.”
ExxonMobil, which, according to the report, had €33.6 billion in profits in 2023, is singled out as the top fossil fuel investment held by asset managers based in Ireland. It also claims that, in 2023, such investments generated an estimated 72.5 million tons of carbon dioxide equivalent, more than the levels produced nationally.
Tax and corporate regulation reforms at EU level are called for given that the regulation of the financial sector “remains weak and fragmented”.
According to the authors, 91 per cent of investments made here were to companies that have plans for fossil fuel expansion.
Patrick Guilbaud on bringing fine dining to Ireland, retirement plans, and not getting that third Michelin star
“Ireland may not have a domestic fossil fuel industry, but it is clear we are deeply complicit in fuelling the global climate emergency, providing a tax-friendly financial gateway for some of the most destructive industries on the planet,” said Karol Balfe, chief executive of ActionAid Ireland.
The report states that, in monetary terms, as of June 2024, Irish-based subsidiaries of investment companies held €31.76 billion in bonds and shares issued by fossil fuel firms.
“Ireland ranks 14th globally in terms of fossil fuel investment by manager location,” it notes. “Alongside Switzerland, Ireland is one of the only two jurisdictions with such significant fossil fuel investments without having a big fossil fuel industry of its own.”
The largest volume of investments via Ireland includes US asset manager BlackRock with €18.9 billion, the report claims. US peer State Street was found to have €4.4 billion, and French banking conglomerate Crédit Agricole €2.1 billion.
The report is critical of the State’s foreign direct investment policy which it identifies as a contributing factor in cultivating a financial landscape that facilitates capital movement.
