Dáil Éireann Debate, Thursday - 8 September 2022
198. Deputy Carol Nolan asked the Minister for Transport if he will issue a clear statement of Government support for licensed hauliers upgrading their fleets to green trucks for example Euro VI and Euro VII standards via the European Investment Bank like the scheme offered to the shipping sector to help improve fuel efficiency; and if he will make a statement on the matter. [42646/22]
Amharc ar fhreagra199. Deputy Carol Nolan asked the Minister for Transport if he will amend the scrappage incentive scheme to remove non-green HGV vehicles to run over a period of five years targeting the removal of older engines off our roads and including (details supplied) upon which the cost of a revised scrappage scheme can be calculated; and if he will make a statement on the matter. [42647/22]
Amharc ar fhreagraI propose to take Questions Nos. 198 and 199 together.
There are currently several Government supports in place to help decarbonise the heavy-duty sector and to assist road transport companies in reducing their carbon emissions. For example, my Department launched the Alternatively-Fuelled Heavy-Duty Vehicle Purchase Grant Scheme in March 2021, which partly funds the purchase of new large vans, trucks, buses and coaches. The fuel types eligible for this Grant Scheme are: compressed natural gas (CNG), liquified natural gas (LNG), hydrogen fuel cell electric vehicles (FCEVs), plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs). 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 company or enterprise applying for the grant, and on the fuel-type of the vehicle that the applicant wishes to buy.
Funding of €2m was allocated to this scheme in 2021 and given the excellent response to the initiative, the Department of Transport allocated an additional €1m in funds to assist the heavy-duty vehicle sector in its transition to zero-mobility. A further €3m was allocated to the Scheme this year to help encourage the uptake of more environmentally friendly heavy-duty vehicles and it is intended that the scheme will once again be available in 2023.
Ireland also has the Low Emission Vehicle Toll Incentive or ‘LEVTI’ Scheme, which offers toll discounts for alternatively-fuelled vehicles. The scheme, which was introduced in July 2018, is expected to run until December 31st 2022 or up until a maximum of 50,000 Low Emission Vehicles have been supported. Under the LEVTI Scheme, alternatively-fuelled HGVs, which includes FCEVs, BEVs and those powered by CNG and LNG. These vehicles can qualify for a 50% discount on tolls, up to an annual cap of €1,000.
With regard to supports for EURO V and EURO IV diesel vehicles, the European Green Deal includes a specific commitment for the removal of subsidies for fossil fuels at the national level. Financial support for the uptake of EURO VI and EURO VII diesel trucks is not consistent with that commitment and it is not likely to be possible to progress such a Scheme in line with EU State Aid rules as a result.
However, the Government is committed to increasing the use of biofuels as a means to support emissions reductions for diesel vehicles which will remain a large majority in the national fleet until alternatively fuelled trucks are more widely available and become cost competitive with diesel engines. Under the Biofuels Obligation Scheme, which is administered by the National Oil Reserves Agency (NORA), there is an obligation on suppliers of mineral oil to ensure that a percentage of the motor fuel they place on the market in Ireland is produced from renewable sources. On 21 January 2022, this percentage was increased from 12.359% to 14.942% by volume. For diesel vehicles, the current fuel blend available at garage forecourts is approximately 7% biodiesel. It is my intention to raise this percentage to 20% biodiesel by 2030, a move which will help to significantly reduce emissions from the haulage sector.
The Programme for Government includes a commitment to publish a ten-year strategy for the haulage sector. This strategy will focus on generating efficiencies, improving standards, and helping the sector move to a low-carbon future. In July, I published a summary document detailing the key insights that were gained from the public consultation on the strategy that was held in 2021, along with copies of the 43 submissions received during the consultation period.
All submitted proposals are currently being analysed by my department, and work is underway on a draft text of the Road Haulage Strategy. This draft text will be made available to stakeholders for further consultation in autumn of this year. Following the consultation period, the strategy itself will be finalised and published before the end of the year, with implementation to begin immediately thereafter.
