Written answers

Wednesday, 17 November 2021

Department of Transport, Tourism and Sport

Electric Vehicles

Photo of Colm BurkeColm Burke (Cork North Central, Fine Gael)
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54. To ask the Minister for Transport, Tourism and Sport the action his Department is taking to help improve the availability of electric vehicles in Ireland in view of the fact that manufacturers are currently subsidising the retail price due to the high levels of taxation on these vehicles; and if he will make a statement on the matter. [56382/21]

Photo of Colm BurkeColm Burke (Cork North Central, Fine Gael)
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56. To ask the Minister for Transport, Tourism and Sport if it is intended to engage with the main banks for low interest loans to be provided to those who wish to purchase electric vehicles; and if he will make a statement on the matter. [56384/21]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 54 and 56 together.

Providing a sustainable, low-carbon transport system is a key priority of my Department. The Programme for Government commits to 7% average annual emissions reduction to 2030; ultimately, the goal is for a zero-emission mobility system by 2050. Electrification will be key to achieving this objective in the transport sector.

Electric vehicles (EVs) are the most prominent transport mitigation measure in the 2019 Climate Action Plan, and Ireland has set an ambitious target of 936,000 EVs on our roads by 2030. This target is challenging but indicates the scale of the transformation that is needed across all sectors if Ireland is to achieve its climate targets in the coming years. The Climate Action Plan 2021 retains this commitment to transforming the national vehicle fleet to a zero emissions fleet, and contains a range of measures to support the public and business in transitioning to electric vehicles.

Considerable progress has already been made, as a result of the work of the Low Emission Vehicle Taskforce, to ensure that conditions and policies are in place to support citizens in making greener vehicle choices. As the Deputy will be aware, a comprehensive suite of measures is available to EV drivers, including purchase grants for private car owners and taxi drivers, VRT relief, reduced tolls, home charger grants, favourable motor and BIK tax rates, as well as a comprehensive charging network. These measures have collectively contributed to increased take up of EVs in Ireland in recent years, albeit from a low base, to over 46,500 now.

In addition, my Department convened the Electric Vehicle Policy Pathway (EVPP) Working Groupto produce a roadmap to achieving the 2030 EV target. The EVPP Working Group comprises senior officials and has considered regulatory, financial, and taxation policies to help drive a significant ramp-up in passenger EVs and electric van sales.

The recommendations of the EVPP Working Group were approved by Government and the full report is now available online.

In order to support the transition to EVs, the Group recommended that:

- The generous suite of EV supports already in place in Ireland should be retained until at least end-2022. Additional measures to further incentivise EVs and/or disincentivise fossil fuelled vehicles will also be necessary. Cost-effective, targeted policy supports should continue to be developed and strengthened over the coming years; and

- An Office for Low Emission Vehiclesshould be established, as a matter of priority, to co-ordinate the implementation of existing and future EV measures and infrastructure. The new Officeshould also take charge of developing and launching an extensive communication and engagement campaign, whole of Government in coverage, to drive the availability and understanding of key information regarding EVs, tailored to household, business and public sector consumers.

Overall, the Department is acutely aware that the cost of electric vehicles remains an issue for many consumers. To this end, electric vehicle policy is kept under continuous review to endeavour to make low emission vehicles affordable.

Photo of Colm BurkeColm Burke (Cork North Central, Fine Gael)
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55. To ask the Minister for Transport, Tourism and Sport the annual percentage increase target set per annum in the use of electric vehicles for each year between now and 2030 in order to achieve the overall figure of one million electric vehicles by 31 December 2030; and if he will make a statement on the matter. [56383/21]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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Electric Vehicles play a central role in our Climate Action Plan, in decarbonisation of our transport sector, and in eliminating emissions from our private car fleet.

Electrification of the vehicle fleet offers a pathway to zero tailpipe emissions, with several co-benefits such as improved air quality, reduced noise pollution, and less fossil fuel dependence.

The Climate Action Plan target is for 945,000 EVs on the road by 2030. There are currently over 46,000 EVs registered on Irish roads the pace of uptake must increase over the coming years to achieve our fleet electrification targets.

D/Transport has developed a trajectory for EV share of the fleet on a year-on-year basis to 2030, to support policy monitoring and evaluation. This is an estimated trend of EV uptake based on modelling and analysis, and suggests a scenario for EV uptake in the national fleet. The target in the CAP is for 2030 - there are not year on year targets for EV uptake and the rate of uptake may vary and not follow the modelled analysis exactly. The trajectory is a useful tool for us to understand how uptake is progressing, and whether different policy measures may need to be introduced to incentivise uptake, or indeed, whether policy measures are over-delivering.

Notwithstanding this, an increase of approximately 25,000 new registrations was estimated in 2021 with an estimated 42,540 registered EVs on Irish roads at the end of this year. This estimate has already been surpassed with currently over 45,000 EVs registered on Irish roads.

The number of newelectric vehicles registered to end September 2021 is 15,855 (including BEVs and PHEVs) with EVs now representing 15.17% of total new car registrations. This is a year on year increase of 215%, and over double of the percentage share of new registrations in 2020 (7.27%) and almost four times the share of that in 2019 (3.9%).

The following table illustrates the modelled uptake of EVs in the national fleet for the CAP analysis. I should note that due to a global semiconductor shortage, the actual uptake of EVs in 2022 may be less than was orginally estimated.

2022 2023 2024 2025 2026 2027 2028 2029 2030
Annual % increase 50.8 46.6 44.3 43.1 42.2 39.8 38.2 37.1 28.4

Notwithstanding this shortage, which the market advises should resolve by end 2022, EV sales should further accelerate over the coming years due to a wider range of models coming onto the Irish market, a greater charging network as well as the generous incentives available.

Over time these sales will help develop the second-hand market, and we can expect that the second-hand market for EVs will develop significantly over coming years.

An Office for Low Emission Vehicles will be established, to co-ordinate the implementation of existing and future EV measures and infrastructure. The new Office will also take charge of developing and launching an extensive communication and engagement campaign, whole of Government in coverage, to drive the availability and understanding of key information regarding EVs, tailored to household, business and public sector consumers.

In support of EV adoption, a National EV Charging Infrastructure Strategy is in development which will seek to prioritise the delivery of fast and rapid charge point infrastructure over the next 5 years.Having an effective and reliable recharging network is essential to enabling drivers to choose electric. Charging at home is the most convenient and cheapest way to recharge. Targeting the installation of smart home chargers is a priority as we look to moving towards more energy efficient and sustainable ways to charge.

There is also a need for a seamless public charging network that will provide for situations or instances where home charging is not possible such as on-street and residential charging, destination charging, and workplace charging.

Overall, the expedition of electric vehicles take up is a key priority. To this end, electric vehicle policy and expenditure is kept under continuous review.

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