Dáil Éireann Debate, Wednesday - 5 October 2022
88. Deputy Darren O'Rourke asked the Minister for Transport his views on the call for the introduction of a tiered fuel rebate scheme for heavy goods vehicles to encourage and support the transition to cleaner vehicles; and if he will make a statement on the matter. [48766/22]
Amharc ar fhreagraThe Diesel rebate scheme is a policy matter for the Department of Finance and the Revenue Commissioners.
The Diesel Rebate Scheme is currently available to licensed haulage operators in respect of vehicles over 7.5 tonnes. At diesel prices over €1.43 (including VAT), the maximum rebate of 7.5 cent per litre is provided. The European Green Deal includes a specific commitment for the removal of subsidies for fossil fuels at the national level. Discussions on this in the context of the EU Energy Taxation Directive, which currently allows for the operation of the Diesel Rebate Scheme, are ongoing at EU level.
The interaction between fuel prices, taxation and a wider shift away from fossil fuels is complex and will be led by the Department of Finance. To support this process, this Department is commissioning a biofuels taxation study that will consider the possible interactions between the proposed revised EU energy taxation regime and national transport decarbonisation trajectories. The scope of the study is currently being finalised, and its results will inform renewable transport fuels policy development.
In addition there are currently several Government supports in place to help decarbonise the heavy-duty sector and to assist in the reduction of carbon emissions. My Department launched the Alternatively-Fuelled Heavy-Duty Vehicle Purchase Grant Scheme in March 2021, which partly funds the purchase of new alternatively fuelled large vans, trucks, buses and coaches. Funding of €3m was allocated to the Scheme this year and I am pleased to say that the scheme will once again be funded in 2023. Ireland also has the Low Emission Vehicle Toll Incentive which offers toll discounts for alternatively-fuelled vehicles, up to an annual cap of €1,000.
The Government is also committed to increasing the use of biofuels as a means to support emissions reductions for diesel vehicles. Under the Biofuels Obligation Scheme a percentage of the motor fuel in Ireland is obligated to be produced from renewable sources. On 21 January 2022, this percentage was increased from 12.359% to 14.942% by volume. It is intended to raise this percentage to 20% biodiesel by 2030, a move which will help to significantly reduce emissions from the haulage sector.
