Dáil Éireann Debate, Tuesday - 19 October 2021
313. Deputy John Brady asked the Minister for Transport the supports in place to assist hauliers to transition to cleaner European standards given that there is no alternative fuel source available; and if he will make a statement on the matter. [50410/21]
Amharc ar fhreagraTo ensure Ireland shows leadership in climate action, the Climate Action and Low Carbon Development (Amendment) Act 2021 mandates carbon neutrality by 2050 and a 51% reduction in emissions by 2030. The forthcoming Climate Action Plan 2021 will set a pathway towards this end.
To reduce transport emissions in line with these targets, all vehicle categories must contribute. As road freight makes up over 20% of Ireland’s land transport emissions there can be no doubt that efforts must be made to decarbonise this sector while of course it is acknowledged that there are technological delays associated with the roll out of widespread alternatively fuelled heavy-duty vehicles.
To promote the decarbonisation of the heavy-duty sector, my Department launched a new Alternatively-Fuelled Heavy-Duty Vehicle (AFHDV) Purchase Grant Scheme on 15 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 fuelled power-trains. To accord with EU State Aid rules, grant levels under the Scheme are calculated as a percentage of the difference in price between a conventionally fuelled diesel HDV and its alternatively fuelled equivalent. Maximum grant levels for eligible vehicles depend on the size of the enterprise applying for the grant.
€2m was allocated to this scheme in 2021 and given the excellent response to the initiative, my Department allocated an additional €1m in funds this year to assist the heavy-duty vehicle sector in its transition to zero-mobility. Funds for 2021 have now been fully allocated however the scheme will continue in 2022 with further funding available. Details on how to apply for funding in January 2022 will be available shortly.
The European Commission proposed a revised Alternative Fuels Infrastructure Regulation (AFIR) as part of last July’s Fit for 55 legislative package. The AFIR seeks to ensure the availability and usability of a dense, widespread infrastructure network throughout the EU to facilitate a quicker transition to cleaner vehicles.
When finalised, the AFIR will mandate the rollout of alternative fuel infrastructure dedicated to heavy-duty vehicles across the EU, with a strong focus on the TEN-T networks. Deployment of electric vehicle recharging and hydrogen refuelling infrastructure will be prioritised in the proposed regulation.
Recognising the scale of the decarbonisation challenge facing the Irish haulage sector, my Department has also commissioned a number of studies to identify concrete actions that haulage operators and companies can take to reduce carbon and other emissions. Involving industry, academia and public bodies, these studies examine how best to maximize the emission reduction potential of the existing HDV fleet, and to identify the most viable decarbonisation and emissions reduction options going forward, and also, in some cases, involve consultation with operators.
These studies include a multi-stakeholder road freight decarbonisation study that my Department co-funded with Transport Infrastructure Ireland (TII). The study drew together Government, transport agencies, industry and academic representatives. The objective of the Phase 1 study was to better understand the policy and logistics contexts within which the Irish freight industry operates, and to identify the most efficient and effective decarbonising measures for the sector in the medium to long term. The study sought to identify and co-design effective and affordable interventions that will have a meaningful impact in real-world road haulage conditions. A Phase 1 report was published at the end of 2020 and consideration of a potential Phase 2 of the project is on-going.
A transition away from conventional fuels to cleaner alternatives is a necessary step change if Ireland is to begin to decarbonise the transport sector. In transport, natural gas can offer a cleaner alternative to oil and renewable biogas can offer a lower carbon emitting alternative.
Gas Networks Ireland has received funding from the European Commission, under the CEF Transport Fund, to install 14 public Compressed Natural Gas (CNG) refuelling stations and a renewable gas injection point under the “Causeway Project”. The provision of refuelling infrastructure will support greater uptake of natural gas vehicles while the installation of a biogas injection facility is essential to enable indigenous renewable gas to become part of Ireland’s future transport fuel mix.
To date, CNG refuellers have been installed in Dublin Port, Cashel, Limerick, and Clonshaugh in Dublin as part of the project. The construction of several other refuellers is underway or planned. In addition, there are also three privately owned stations in operation.
GNI also received approval for funding through the CEF for “Green Connect” to roll-out a second phase of CNG infrastructure on completion of Causeway.
The excise rate for natural gas and biogas as a transport fuel is set at the current EU minimum rate. This rate puts CNG in a competitive price position with diesel. In addition, Budget 2019 saw the introduction of an accelerated capital allowance scheme for natural gas propelled vehicles and related equipment. This enables businesses to write down the cost of such vehicles or equipment up-front in the year of purchase rather than spread over 8 years. In Budget 2021, this scheme was expanded to include hydrogen vehicles and equipment.
The Biofuels Obligation Scheme supports biogas by allowing fuel suppliers to claim biofuel certificates for biogas which suppliers can use to meet their biofuel obligations. The biofuel obligation requires that fuel suppliers place a certain biofuels (which can include biogas) in road transport in proportion to amount of petrol and diesel they place. It is my intention to extend the scheme to also provide similar support for renewable hydrogen.
