Minister for Finance statement on the Use of Future Ireland Funds

The Minister states:

The Future Ireland Fund (FIF) and the Infrastructure, Climate and Nature Fund (ICNF) were established in 2024 following the passage of the Future Ireland Fund and Infrastructure, Climate and Nature Fund Act through the Oireachtas. The majority of the Act commenced on 30 July 2024.

The Funds seek to future proof the public finances and to deal with future challenges such as demography, de-carbonisation, digitisation and de-globalisation. As the FIF is a long-term savings vehicle, drawdowns from the fund will only begin from 2041 onwards. This is to provide sufficient time for the capital in the fund to be invested and generate a return.

The purpose of ICNF is to support the economy in times of exceptional need and to support the funding of designated environmental projects. Funding can be drawn down from 2026. The process of drawing down funding for designated environmental projects, is managed by the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitisation.

Both funds are to be capitalised by annual transfers from the Exchequer - 0.8 per cent of GDP per annum (from 2024 onwards) in the case of the FIF, and €2 billion per annum (from 2025 onwards) in the case of the ICNF. Over €10 billion has already been transferred to the Funds in 2024. This year's transfer to the Funds were announced during Budget 2025. By the end of this year, the Future Ireland Fund will hold approximately €12.5 billion and the ICNF €4bn.