Michael Lowry (Tipperary, Independent)
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77. To ask the Minister for Transport, Tourism and Sport the extent to which he expects to meet carbon reduction targets in commercial transportation and other transportation sectors without jeopardising Ireland's economic capabilities; the Government and EU supports that will be provided to these sectors; the investments his Department intends to make in Ireland’s transport infrastructure to aid the transition to a zero-emission future; and if he will make a statement on the matter. [9911/23]

Eamon Ryan (Dublin Bay South, Green Party)
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Following the adoption of the carbon budget programme by Dáil Éireann in April 2022, the Government agreed and established sectoral emissions ceilings for relevant sectors of the economy in July 2022, in accordance with provisions set out under the Climate and Low Carbon Development (Amendment) Act 2021 (‘Climate Acts 2015-2021’).  

Under this legally binding framework, we are therefore obligated to identify and pursue a transport decarbonisation pathway (for all domestic transportation sectors) that will deliver a 50% reduction from the 2018 emissions baseline of 12.2 megatonnes of CO2 equivalent (MtCO2eq., or Mt) to 6.1 Mt by 2030, and to do so in a manner that is consistent with a sectoral emissions ceiling of 54 Mt for the first carbon budget period (2021-2025), and a further reduced sectoral emissions ceiling of 37 Mt over the second carbon budget period (2026-2030), having regard to the provisions set out under Section 4 of the Climate Act.  

Meeting our 2030 transport abatement targets will require transformational change and the transport chapter of Climate Action Plan 2023 (CAP23) and the forthcoming associated Annex of Actions therefore establish key work programmes and actions in accordance with an ‘Avoid-Shift-Improve' framework for greater transport sustainability, in addition to updated metrics that have been informed by detailed transport modelling to reflect the level of change required across all relevant transportation sectors – including a special focus on the road haulage sector.  

With regard to commercial transportation, the transport chapter of CAP23 acknowledges that given the limited zero-carbon alternatives currently available to commercial operators, decarbonisation of the haulage and heavy goods road freight sector poses a particular challenge. The transport chapter has therefore been developed in close concert and alongside the publication of our first-ever 10-year government strategy dedicated to the haulage and road freight sector.  

Our Road Haulage Strategy, which was published in December 2022, has set out 39 key measures and supporting policies to generate efficiencies, improve standards, secure jobs and help the road freight sector move to a low-carbon future while ensuring the long-term viability of the sector. Under the proposed decarbonisation pathway that is set out in both publications, in addition to increased use of biofuel blending to reach a B20 level by 2030 (i.e. a 20% biodiesel blend), key targets for our commercial fleet include achieving a transition to 95,000 commercial EVs, a 30% zero emission share of new medium to heavy duty vehicle registrations being zero emission vehicles, and 3,500 low emission heavy goods vehicles (HGVs). Under this decarbonisation pathway, and accounting for projected demographic and growth in commercial goods movements, we expect that HGV emissions would see a net reduction of approximately 10% relative to their 2.2 Mt baseline emissions by 2030.  

A number of key Government supports are also already in place to help decarbonise the heavy-duty sector, including the Alternatively Fuelled Heavy-Duty Vehicle (‘AFHDV’) Purchase Grant Scheme, which supports and promotes the decarbonisation of the heavy-duty sector to transition from vehicles fuelled by fossil fuels. A total of €5m in funding has been provided for the scheme in 2023, and commercial transport operators may also avail of the Low Emission Vehicle Toll Incentive or ‘LEVTI’ Scheme, which offers toll discounts for alternatively fuelled vehicles. The Finance Act 2020 also provided for commercial transport operators to avail of the Accelerated Capital Allowance (ACA) scheme, which allows taxpayers to deduct the full cost of capital expenditure on eligible vehicles and equipment (e.g. charging points) from taxable profits for the year in which the equipment is first used for the purposes of the trade. Other supporting mechanisms such as the Climate Action Fund, which will provide at least €500 million in government funding up to 2027 across all sectors, or the EU’s Just Transition Fund Programme, which has allocated €18 million for planned transport investments in the Midlands region, are also in place to support eligible sustainable transport programmes.  

With respect to supporting infrastructure, here I note that the forthcoming Alternative Fuels Infrastructure Regulation (AFIR) under the EU’s Fit for 55 Package will also set minimum mandatory requirements for Member States to provide a sufficiently dense electric charging point and hydrogen refuelling network on the TEN-T network, to provide commercial transport operators and the wider public with increased confidence to transition to zero-emission alternatives. This file is currently in trilogue phase of negotiations with the Commission and European Parliament and final agreement on this file, expected later this year, will further inform the work of Zero Emissions Vehicles Ireland and roll out of our National EV Charging Infrastructure Strategy, and implementation plans for publicly accessible high-powered charging stations. In line with the final AFIR position, my Department will also develop a revised National Policy Framework for Alternative Fuels in Transport that will set out further detail in support of the long-term sustainability and decarbonisation of the transport sector.  

Finally, my Department in co-operation with the Department for Infrastructure (Northern Ireland), is preparing a strategy for the development of the railway sector on the Island of Ireland over the coming decades, including considerations regarding the role of rail freight. This Strategic Rail Review is now at an advanced stage and will be published once the necessary approvals are secured.