Dáil Éireann Debate, Thursday - 7 November 2024
20. Deputy Duncan Smith asked the Minister for Transport his views on the increase in the sale of diesel-powered cars; the policies the Government will pursue to reduce the number of diesel-powered cars on the road in order to achieve its emission reduction targets; and if he will make a statement on the matter. [45506/24]
View answerThe Climate Action Plan sets out a decarbonisation pathway to achieve a 50% reduction in transport emissions by 2030, in a manner that is consistent with our sectoral emissions ceiling. Ireland has ambitious targets under the Climate Action Plan to shift 30% of the private vehicle fleet to electric, reduce the total vehicle kilometres travelled (from all vehicle types including diesel vehicles) by 20%, and reduce daily car journeys by 25% by 2030 under the Avoid-Shift-Improve Framework. The Government’s approach to reducing the number of diesel-powered cars will also be assisted through actions to provide sustainable travel alternatives to car journeys more generally under the National Sustainable Mobility Policy.
However, the most distinct support for reducing diesel vehicles in the fleet over time will be through electrification. Almost €116m has been made available in 2024 to ensure the continued transition to electric vehicles. This figure includes funding for EV grants and EV charging infrastructure. This level of funding underpins the Government’s commitment to making electric vehicles accessible to all. As of the end of September 2024, there were 142,545 electric vehicles on Irish roads.
Existing financial supports, including Government grants and tax relief measures, available for consumers to transition to electric vehicles include:
• a purchase grant for battery electric vehicles (BEVs);
• a Home Charger purchase grant scheme - up to €300;
• VRT relief of up to €5,000 for the purchase of battery electric vehicles;
• BIK relief for employees driving commercial battery electric vehicles;
• eSPSV grant scheme – a grant for taxi drivers to make the switch to an EV;
• ZEHDV grant scheme – a grant for HDVs to bridge the gap between a low emission vehicle and a fossil fuel vehicle; and
• low rate of annual motor tax.
• As part of the Budget 2025, several extended and new taxation measures to support the transition to zero and low emission vehicles were announced including:
• extension of Benefit in Kind (BIK) relief on company vehicles;
• BIK exemption for provision of EV chargers at the home of an employee; and
• reduced VRT rate of €200 for electric commercial vehicles (from 2025).
