A Green Party memo which would explain how the €2 billion Climate and Nature Fund would be allocated has been blocked by the Taoiseach. Simon Harris and Tánaiste Michael Martin before being presented to Cabinet.

Sign of growing tensions between Coalition partners as the announcement of a general electionleaders of Fianna Fáil and Fine Gael did not allow the memo to be approved at Tuesday’s ministers’ meeting.

Minister of the Environment Eamon Ryan had proposed presenting a plan outlining how the money would be allocated to various climate action measures, including new clean energy projects, retrofit, insulation, biomethane, efficiency, networks and infrastructure.

However, it is understood that Fine Gael and Fianna Fáil felt the memo was “premature” and that decision-making on how the funds should be used would be a matter for the whole of government, rather than one single department. The other two parties suggested that other departments would have been willing to come forward with proposals and that more consultation was needed.

The Green Party, however, argued that it was more important for the government to present its views before the election.

Minister of State at the Department of Public Expenditure and Reform Ossian Smyth said he was “extremely disappointed” by the decision. “We’re surprised they’re dragging their feet on this,” the Green Party TD said. “They didn’t want this on the Cabinet agenda, even though they knew it would happen for a long time.

“Everyone knows that if we fail to meet our emissions reduction targets we will face billions of euros in fines from the EU and that any delays could cost the state money “, he said.

The fund was set up by Fianna Fáil’s Michael McGrath when he was finance minister.

The Green Party plan proposed spending hundreds of millions of euros renovating public sector buildings such as hospitals, schools, leisure centers and universities. He also proposed a program to help private businesses become more energy efficient.

Other proposals included making district heating available in areas where there was significant industry. This is where waste heat from large industries could be used to heat homes and public buildings using a network of underground pipes.

Other planned projects included biomethane projects in Irish rural infrastructure to support offshore wind energy and microgeneration.

“This money will be allocated from 2026 onwards, so we need to give the private sector a clear signal as to where this money will be spent so they can start to develop their own plans, prepare their supply chains and raise matching funds.” said Mr Smyth, a TD for Dún Laoghaire.

“None of these allocations should surprise Fianna Fáil and Fine Gael. This is a well-considered proposal, based on the findings of an intergovernmental working group on climate action.

Other coalition parties, however, said the proposal was premature and required more work and consultations before decisions on specific projects could be made.