Meeting the envisaged emission reduction target set out in the new climate bill could require investment of close to €20 billion (or 5% of Ireland's GDP) annually over the next 10 years, according to the International Monetary Fund (IMF).

The Climate Action and Low Carbon Development (Amendment) Bill 2021 is being debated in the Seanad today (Monday, June 21), after the government voted in favour of it last week.

This bill sets out how Ireland will work towards reducing greenhouse gas emissions by, on average, at least 7% per annum for the next 10 years to reach a 51% reduction by the end of the decade, and to have net-zero emissions by 2050.

The IMF estimates that one-third of the estimated cost of implementing the bill would go towards public capital spending on climate-sensitive infrastructure (energy supply, transport, water and waste).

In its report, the IMF said:

"Complementing a gradually increasing carbon price with a wide range of sector-specific policies will help reduce the transition costs and protect vulnerable groups in the shift to a greener, more sustainable, and fairer economy."

The IMF noted that its estimates "do not include additional sectors/activities contributing to climate mitigation: industry [manufacturing and process-driven emissions, including cement], non-infrastructure related changes in mobility [vehicles], agriculture, and some social infrastructure".

The cost has been described as "obscene and it must be challenged", according to rural TD Carol Nolan.

"All of this for a bill that explicitly de-prioritises employment. It is incomprehensible and it must be rejected before the damage is done and the costs skyrocket," the deputy claimed.

"It was absolutely shameful that the minister [Eamon Ryan] rejected over 200 amendments, after we put forward constructive options and reached out and tried to be collaborative. It is appalling."