Government targets 1,500 jobs with new funding legislation
Laws could make Ireland 'the sustainable finance capital of the world'
The Government plans to create 1,500 new jobs and lure €148bn in funds to Ireland through the introduction of new private equity and funding finance legislation.
The new laws will clear the way for the introduction of so-called blended financing investment, which will allow the Government to come together with private equity firms to invest in sustainable development.
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Minister of State Michael D'Arcy, who is responsible for the financial services sector, believes the new legislation has the potential to turn Ireland into "the sustainable finance capital of the world". Central to this will be a plan to capitalise on the increasing number of global green and sustainable investment funds.
The Department of Finance will publish a roadmap to make Ireland a key destination for green investors, ahead of the introduction of new sustainable finance and investment limited partnership (ILP) laws.
D'Arcy said the legislation will result in hundreds of new private equity firm jobs.
"I believe that this new ILP legislation will help attract 5pc of the $3.3trn (€2.9trn) global private equity market to Ireland within five years, and could bring $165bn in funds, and create 1,500 jobs," D'Arcy told the Sunday Independent.
The minister said Ireland is losing out on a significant stream of international investment because the legislation has not been passed by the Dáil.
He said the Department of Finance wants to encourage equity firms to diversify their portfolios and invest in more sustainable funds.
In early November, the Department of Finance will publish a national sustainable finance roadmap. The launch will coincide with Ireland's second Climate Finance Week, which is due to take place from November 4 to 8.
"We must harness the expertise of Irish capital market participants, and continue to develop new products and services, unlocking essential capital to meet domestic needs and beyond," the minister said.
"This will make Ireland a successful global centre of sustainable green finance," he added.
Ireland was one of the first countries in the world to single out sustainable finance when it issued a green bond in October 2018. At the time, only four other countries had issued similar bonds.
In the same year, Dublin was selected as the European headquarters of the United Nations Financial Centres for Sustainability (FC4S) network.
Sunday Indo Business