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Electric Vehicles

Dáil Éireann Debate, Thursday - 28 April 2022

Thursday, 28 April 2022

Ceisteanna (158, 159)

Catherine Murphy

Ceist:

158. Deputy Catherine Murphy asked the Minister for Transport if he has consulted with his ministerial colleagues at the Department of Finance and the Department of the Environment, Climate and Communications regarding the price differential here and throughout the European Union in respect of electric and hybrid vehicles; and his plans to reduce the cost of purchasing these types of vehicles in this State. [21629/22]

Amharc ar fhreagra

Catherine Murphy

Ceist:

159. Deputy Catherine Murphy asked the Minister for Transport if he has considered methods of improving the update of electric vehicles and hybrid vehicles from the second-hand car market. [21630/22]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 158 and 159 together.

Electric vehicles (EVs) are the most prominent transport mitigation measure in the 2021 Climate Action Plan. Ireland has set an ambitious target of 945,000 EVs on our roads by 2030. This target is challenging but indicates the scale of the transformation that is needed across all sectors if Ireland is to achieve its climate targets in the coming years. 

Considerable progress has been made to ensure that conditions and policies are in place to support citizens in making greener vehicle choices. As the Deputy will be aware, a comprehensive suite of measures is available to EV drivers, including purchase grants for private car owners and taxi drivers, VRT relief, reduced tolls, home charger grants, favourable motor and BIK tax rates, as well as a comprehensive charging network. These measures have collectively contributed to increased take up of EVs in Ireland in recent years, albeit from a low base in 2017, to over 56,000 now.

Notwithstanding this, I am acutely aware that the cost of electric vehicles remains an issue for many consumers and that  supply chain issues globally have also proven difficult. These have been exacerbated by international events. For these reasons, our policy measures here are kept under continuous review. 

Ireland is at the beginning of its transition to private electric transport. Within a few years I anticipate there will be a viable second hand market that will provide a more affordable pathway to the purchase of an EV. In addition, the motor industry is planning to bring more affordable electric vehicles onto the market.  Notwithstanding this, I am taking steps to accelerate the establishment of a second hand EV market in Ireland. 

My Department convened the Electric Vehicle Policy Pathway (EVPP) Working Group to produce a roadmap to achieving the 2030 EV target. This Group considered a variety of regulatory, financial, and taxation policies to accelerate EV adoption. The Group also examined the issue of price parity between EVs and ICE vehicles and found that parity in respect of the Total Cost of Ownership is likely to be achieved later on this decade, driven by falling battery prices and savings due to economies of scale. 

In the meantime, in order to support the transition to EVs, the Group recommended that the generous suite of EV supports already in place in Ireland should be retained until at least end-2022. Additional measures to further incentivise EVs and/or disincentivise fossil fuelled vehicles will also be necessary. Cost-effective, targeted policy supports should continue to be developed and strengthened over the coming years. 

A cross-departmental Implementation Group has been established to progress the recommendations and consider further potential measures and barriers to the adoption of the EVs. It will also examine the creation of a second hand market. This Group will report on its progress to Government in Q4 of this year.  

In addition, work is underway to establish Zero Emission Vehicles Ireland as a matter of priority. This office will co-ordinate the implementation of existing and future EV measures and infrastructure.  Our objective is to develop and refine cost-effective, targeted policy supports over the coming years.  

Question No. 159 answered with Question No. 158.
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