Catherine Murphy (Kildare North, Social Democrats)
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195. To ask the Minister for Transport, Tourism and Sport if he has engaged with the Minister for Finance in respect of the way in which companies can be encouraged to switch their vehicle fleets to hybrid and electric vehicles in the context of the climate action plan; and his plans to consider the way in which he can influence reform of the benefit in kind regime in the context of the uptake of greener vehicles ahead of the budget (details supplied). [27439/21]

Eamon Ryan (Dublin Bay South, Green Party)
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As you may be aware, the transport sector accounts for approximately 20% of Ireland’s national greenhouse gas emissions, with car use responsible for over half of these emissions. In recognition of this, the Climate Action Plan contains commitments to significantly increase electrification within the national fleet, including an ambitious target of 936,000 electric vehicles (EVs) by 2030. Meeting this target will be extremely challenging; however, it represents the scale of transformation needed in the transport sector if emissions are to be reduced to the extent required.

The State has an important role to play in normalising EVs and promoting their uptake. A positive policy environment has been fostered with a generous suite of financial and taxation incentives in place for those buying an EV as well as an extensive publicly accessible recharging infrastructure network. Presently, there are approximately 32,000 EVs on Irish roads; a significant step-up is required if Ireland is to achieve its Climate Action Plan EV target.

To assist in this aim, the former Department of Transport, Tourism and Sport established the Electric Vehicle Policy Pathway Working Group to consider the optimum mix of regulatory, taxation and subsidy policies available to Government to significantly accelerate electric vehicle sales. This Group focused on mechanisms to achieve an immediate increase in EV uptake to attain over 180,000 EVs by 2025 in the line with the Climate Action Plan trajectory and, thereafter, to be well placed to reach full electrification by 2030. In its report, to be published shortly, the Group considered supplementary measures to further incentivise EVs other than the existing generous suite of EV supports.

I am supportive of all appropriate and proportionate supports for the EV industry, particularly where those supports provide momentum towards achieving the Government’s emission reduction commitment. The Deputy will be aware that the benefit in kind regime is a matter for my colleague, the Minister for Finance.