Jerry Buttimer (Cork South-Central, Fine Gael)

I thank Senators Kyne, Conway and Byrne for their contributions on this very important matter. They raised very pertinent points regarding the localities where they are from and, indeed, about the tourist market. The greening corporate fleets initiative originates from the European Commission's sustainable and smart mobility strategy from 2020, which committed to a comprehensive policy of actions to boost the uptake of zero-emission vehicles in corporate and urban fleets. In October of last year, Ireland joined a small group of like-minded member states in writing, as Senator Kyne said, to President von der Leyen at ministerial level urging the Commission to take action on corporate fleets. Having set out the pathway for a transition towards zero-emission vehicles with the CO2 emission standards and having set binding targets for public charging under the alternative fuels infrastructure regulation, AFIR, it is increasingly clear that we need to consider action on the demand side in order to push zero-emission vehicles. Corporate fleets are the EU's most important market segment, representing most new vehicle registrations.

Ireland is strongly in favour of the EU-level intervention that helps us to reach our 2030 EV targets in the first instance and those targets beyond 2030, and is advocating for timely, targeted legislation that can be agreed quickly and have the necessary impact. Ireland’s focus is on light duty vehicles, cars and small vans and the measures that can be implemented quickly and complement existing national measures, which in this case typically include a mixture of tax and grant benefits. The corporate fleet sector is diverse, consisting of large and small companies ranging from additional car company executive fleets to large shipping and freight companies, last mile delivery fleets, increasing companies and short-term rental companies. Each of these subsectors has unique conditions that would make a one-size-fits-all approach ineffective. We will be ensuring that any targets reflect this diversity and do not create any unachievable burden.

Officials from the Department of Transport have engaged with the car rental sector to discuss concerns about the forthcoming proposal, and I will bring the concerns of the three Members this morning back to the Department. At ministerial level, a meeting was recently held between the Minister of State, Deputy Canney, and the Car Rental Council of Ireland, and further engagement has taken place through our permanent representation in Brussels. The Commission's legislative proposal is expected by the end of this year. Once the proposal is published, my Department will work to assess how the proposal will affect Irish businesses in terms of the number and types of company within the scope of the proposal. We will also give consideration in due course to whether our existing supports for EV take-up need to be adjusted to better complement any EU regulation.