Noel Grealish
Question:211. Deputy Noel Grealish asked the Minister for Transport the reason that the alternatively fuelled heavy duty purchasing scheme has been paused; and if he will make a statement on the matter. [42636/23]
View answerTuesday, 3 October 2023
Questions (211, 212)
Noel Grealish
Question:212. Deputy Noel Grealish asked the Minister for Transport the steps he is planning to reintroduce the alternatively fuelled heavy duty purchasing scheme; and if he will make a statement on the matter. [42637/23]
View answerWritten answers
I propose to take Questions Nos. 211 and 212 together.
Ireland has committed to transitioning to a low carbon economy by 2050 and the transport sector has a significant role to play. To date, in Ireland, the transport sector is heavily dependent on imported oil. Reducing this reliance and switching to zero emission fuels and technologies will be essential to decarbonise the sector. Major changes to our conventional fuel choices will be needed to achieve this goal.
Decarbonisation of heavy-duty vehicles will be key to achieving this objective in the transport sector.
To promote the decarbonisation of the heavy-duty sector, my Department launched the Alternatively-Fueled Heavy-Duty Vehicle (AFHDV) Purchase Grant Scheme in March 2021. The Scheme, which is administered by TII, is intended to help bridge some of the difference in purchase price between conventional heavy-duty vehicles (HDVs) and those powered by alternatively-fueled power-trains.
EU state aid rules have now changed in regards to the General Block Exemption Regulation (GBER). The Green Deal Amendment was published in the EU’s Official Journal 30 June 2023 and is effective as of 1 July 2023. This has impacted the AFHDV Purchase Grant Scheme and amendments to original Scheme Terms and Conditions are now being undertaken. As a result of this, the original AFDHV scheme was no longer viable and needed to be paused to new applications.
It is planned that a new Heavy Duty Vehicles Scheme will be opened in early January 2024, with new T&C’s incorporating the changes to the EU state aid rules. The new scheme will focus on incentivising the purchase of zero emission heavy duty vehicles. Commitments have been made to existing applications to the original AFHDV Scheme and these commitments are being fulfilled through contract agreements.
Question No. 212 answered with Question No. 211.