Written answers

Wednesday, 20 March 2024

Department of Transport, Tourism and Sport

Electric Vehicles

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail)
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165. To ask the Minister for Transport, Tourism and Sport if he, in consultation with the relevant departments, will examine a financial incentive for drivers to buy a plug-in hybrid electric vehicle (PHEV) in order to meet Ireland's obligation to move away from diesel; and if he will make a statement on the matter. [12222/24]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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The current target under the Climate Action Plan is to have 30% of our private car fleet switched to electric by 2030 (i.e. 845,000 private EV target).

Fleet electrification is expected to continue to provide the greatest share of emissions abatement in the short-to-medium term for the transport sector. Detailed modelling was undertaken to inform the Transport chapter of the Climate Action Plan 2023, which considered 2025 and 2030 scenarios as reference years, in accordance with the carbon budget programmes. Fleet forecasts have been estimated using the Irish Car Fleet Model that assesses the impact of new vehicle technologies on carbon emissions. The model predicts how the proportion of fuel types (petrol, diesel, hybrid or electric) within the fleet will change over time using observed vehicle registration and scrappage rates by age and fuel type.

The new EU Regulation on CO2 Emissions for Cars and Lights Vans, which was finalised in March 2023, is a crucial part of the Transport Sector’s transition to carbon neutrality. Emissions from road transport constitute the single largest portion of overall transport emissions and therefore tackling this is central to achieving our overall targets. The new Regulation accelerates the timeframes for zero emissions for cars and light vans, introducing 2035 as the year by which there must be 100% CO2 reduction in both new cars and vans. Ireland is among a number of more ambitious Member States that argued for more stringent targets, calling for the end to the ICE sales by 2030. However, in order to secure agreement amongst all Member States and with the European Parliament, the date of 2035 was agreed.

At the behest of Ireland and other ambitious Member States, the CION will present a proposal to allow those MSs that wish to do so to introduce more ambitious domestic targets than contained in the Reg, to allow them to set earlier dates for the ending of the supply of ICE vehicles. This is expected to be ready this year.

There are currently over 118,000 EVs registered on Irish roads (end February 2024). That number is expected to increase as the price of EVs continue to fall relative to their combustion engine equivalents. It is expected that as manufacturers increasingly ramp up EV production, upfront costs will become more comparable to traditional combustion engine cars within the next number of years. This will make total cost of ownership much more attractive and competitive, particularly given fuel prices trends. There is also far more choice available across all major car manufacturers and this is driving increased competition on price.

The Government has committed significant funding to support zero and low emitting vehicles through the National Development Plan, which currently includes an allocation of almost €500 million for the period 2021-2025 and additional support from the Climate Action Fund, the Shared Island Fund and the EU Just Transition Fund.

€115.8m has been allocated in 2024 to ensure the continued transition to electric vehicles which includes funding for EV grants and EV charging infrastructure.

This underpins the Government’s commitment to making electric vehicles accessible to all.

The purchase of PHEVs is no longer grant aided as funding has been rebalanced towards zero emission vehicles and associated infrastructure. Current financial supports from ZEVI, and where applicable with support from the Department of Finance, for the transition to electric vehicles and for the rollout of electric vehicle charging infrastructure include:

  • A purchase grant for battery electric vehicles (BEVs) of up to €3,500;
  • A Home Charger purchase grant scheme - up to €300;
  • VRT relief of up to €5,000 for the purchase of BEVs;
  • Benefit-in-Kind tax relief for battery electric vehicles;
  • eSPSV grant scheme – a generous grant for taxi drivers to make the switch to Wheelchair Accessible EV’s of up to €25,000;
  • ZEHDV grant scheme – a grant scheme for HDVs to bridge the gap between a low emission vehicle and a fossil fuel vehicle; and
  • Low rate of annual motor tax;
These and related infrastructure supports will continue to incentivise the switch to electric vehicles as well as enabling the expansion of a fast and accessible rapid electric vehicle charging network to stay ahead of demand.

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