Carol Nolan (Offaly, Independent)
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181. To ask the Minister for Transport, Tourism and Sport if he will consider advocating for the introduction for a rebate on hydrogenated vegetable oil fuel costs incurred by operators in the haulage and freight sectors; and if he will make a statement on the matter. [50144/25]

Seán Canney (Galway East, Independent)
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As Minister of State for International & Road Transport, Logistics, Rail & Ports, I am committed to supporting the decarbonisation of the haulage and road freight sector.

My Department’s policy, as detailed in Ireland’s Road Haulage Strategy 2022-2031, is for the Heavy Duty Vehicle (HDV) fleet to transition to Zero Emission technologies. Funding and schemes are available for the sector to support the transition to Zero Emission operations. The Zero Emission Heavy-Duty Vehicle (‘ZEHDV’) Purchase Grant Scheme supports and promotes the decarbonisation of the heavy-duty sector to transition to Zero Emission vehicles. The Scheme supports the purchase of new large commercial vehicles by bridging some of the price difference between conventional heavy-duty vehicles and Zero Emission vehicles, which offer environmental benefits. The scheme has a budget of €3.5m in 2025. In November 2024, the scheme expanded to include grants for recharging infrastructure at depots, logistics hubs and urban nodes from early 2025. A new Fleet Assessment Audit, which launched in Q2 2025 administered by SEAI, offers businesses an assessment by an independent energy advisor who can provide guidance on the transition to zero emission vehicles.

In addition, the Accelerated Capital Allowance (‘ACA Scheme’) for Gas Vehicles and Refuelling Equipment and the Triple EEE ACA scheme are tax incentive schemes that promote investment in low emission HDVs. The ACA is based on the long-standing 'Wear and Tear Allowance' for investment in capital plant and machinery, whereby capital depreciation can be compensated through a reduction in an organisation's tax liability. This scheme allows operators to reduce their immediate tax bill against company profits when investing in Zero Emission vehicles through the Triple EEE for electric trucks and Hydrogen/Biomethane through the Gas Vehicle scheme.

Additionally, Government is committed to increasing the use of renewable fuels as an interim measure to support emissions reductions for diesel vehicles until the upfront cost of Zero Emission trucks becomes more competitive with diesel alternatives.

The CAP24 sets non-binding targets, to be achieved via the Renewable Transport Fuel Obligation on fuel suppliers, to reach at least a 20% sectoral share consumption of biodiesel (B20) by 2030 and a 10% bioethanol sectoral share consumption (E10) by 2030.

Biofuels are fully relieved from the carbon component of Mineral Oil Tax. This means that carbon tax does not apply to biofuels, such as Hydrogenated Vegetable Oil (HVO) or biomethane, used in any road vehicle, private or commercial. As annual increases in the carbon tax are implemented, the differential in tax costs between biofuels and fossil fuels will continue to widen, further incentivising the uptake of biofuels.

However, the availability of renewable transport fuels, including HVO, will remain constrained in the medium term given current global production capacity, the need for sustainable feedstock and increasing demand from various sectors to use renewable fuels in their decarbonisation journey. My Department is finalising a detailed study on HVO use in the HDV sector to estimate the quantity of HVO used, price, decarbonisation potential and the feasibility of transitional incentives for HVO - which would not delay the overall trajectory for transition to zero emission HDV fleets.

The report is currently being reviewed by Department officials, and I look forward to sharing the results of the study in the near future.