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Fuel Sales

Dáil Éireann Debate, Tuesday - 13 June 2023

Tuesday, 13 June 2023

Ceisteanna (311)

James Lawless

Ceist:

311. Deputy James Lawless asked the Minister for Transport if he will examine a matter (details supplied) concerning petrol cars; and if he will make a statement on the matter. [28313/23]

Amharc ar fhreagra

Freagraí scríofa

Autogas and liquefied petroleum gas (LPG) are alternative fuels generally derived from natural gas processing and oil-refining, or in the case of BioLPG, derived from various biomass sources. As energy products, the application of excise duty via the mineral oil tax, or supporting incentives such as for example the inclusion of LPG under accelerated capital allowances for energy-efficient vehicular equipment, would be in the first instance a matter for the Minister of Finance.

The Renewable Transport Fuel Obligation (RTFO), however, which is administered by the National Oil Reserves Agency, places a statutory obligation on suppliers of road transport fuels to ensure that a proportion of the fuels placed on the Irish market is produced from renewable sources, and that renewable transport fuels adhere to sustainability and greenhouse gas emissions reduction criteria. BioLPG supplied in transport that meets the sustainability and GHG emissions reduction criteria is eligible for RTFO certificates.

The current RTFO rate is 17% and it is intended to increase the rate on an annual basis to meet Climate Action Plan and EU requirements. Modelling analysis of the Climate Action Plan projects a 1.08 MtCO2eq. abatement saving through achieving the target to raise the blend proportion of biofuels in road transport to an equivalent of E10 (Ethanol) in petrol and B20 (biodiesel) in diesel by 2030. This predicted abatement equates to 13.7% of the total transport sector decarbonisation planned by 2030.

I would note, however, that the forthcoming EU Alternative Fuels Infrastructure Regulation (AFIR), which is expected to be adopted by the European Parliament in July, and which will set minimum mandatory infrastructure requirements to support the decarbonisation of our vehicle fleets, considers liquefied petroleum gas (LPG), compressed natural gas (CNG), and liquefied natural gas (LNG) to be non-renewable, transitional fossil fuels. Vehicles using such fuels are therefore to be gradually replaced by zero-emission powertrains in the medium-to-long-term.

As such, the proposed AFIR regulation will not set a mandatory target for the deployment of publicly accessible refuelling points for CNG, LPG or other forms of liquefied methane for road transport. Member states will be instead allowed to assess their own level of demand for such fuels, and deploy an appropriate number of publicly accessible refuelling points, unless the costs of doing so are disproportionate to the benefits, including environmental benefits.

Over the coming months, my Department will undertake a public consultation to inform an update of the Government’s current National Policy Framework for Alternative Fuel Infrastructure 2017-2030 that will consider the future role for LPG and autogas in road transport relative to other renewable and zero-emission alternative fuels.

While Government has committed significant funding to support low emitting vehicles through the National Development Plan, which currently includes an allocation of almost €500 million for the period 2021-2025 and additional support from the Climate Action Fund, this funding is primarily targeted for zero-emission alternatives, supporting the purchase of EVs and capital funding for the delivery of EV charging infrastructure. Our target under the Climate Action Plan 2023 is to have c.30% of our private car fleet switched to battery electric by 2030.

A new dedicated office, Zero Emission Vehicles Ireland was launched in July 2022 to oversee and accelerate Ireland’s transition to zero emission vehicles , and details regarding grants and initiatives supporting such zero emission vehicles is available at www.gov.ie/zevi.

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