O’Sullivan: EV grants need to be restored in full

Fianna Fáil Spokesperson on Climate Action Christopher O’Sullivan TD has called for the maximum value of EV grants to be reinstated to €5,000.  

 

In July 2023, the Government grant for newly licenced EVs was reduced from €5,000 to €3,500 for vehicles over the €20,000 mark. 

 

Speaking in the Dail, Deputy O’Sullivan said: “We’ve seen a reduction in overall greenhouse gas emissions of 2% in 2023 but one area where emissions on the increase is in transport. Transport emissions went up 6% in that time. 

 

“EVs still play a key role in the reduction of emissions in transport especially in more rural areas. While EVs may have their detractors and it’s a favourite pastime of some people to spread misinformation about them they are still hugely important tool for reducing emissions. 

 

“But we’ve seen sales of EVs drop. If you take the first three months of this year sales are down about 10% on the same time last year. This drop can be attributed to the reduction in the grant." 

 

The grant for vehicles worth over €20,000 was reduced from €5,000 per EV to €3,500 as of June 2023. For EVs priced between €18,000 and €19,000 the sum was reduced from €4,000 to €3,500, while the grant for EVs priced between €19,000 and €20,000 was reduced from €4,500 to €3,500.

 

Deputy O'Sullivan added: “I’m seeking the grants restored in full so we can once again incentivise EVs because they do play a key role in reducing emissions in the transport sector.” 

 

Figures from the CSO showed the sales of newly licenced electric vehicles (EVs) between January and March this year totalled 6,780, down from 7,513 on the same period last year. This represents a 9.8% drop.  

 

The data also showed that the EVs priced over the €20,000 euro mark have been affected the most be the reduction in the grant.  

 

Taoiseach Simon Harris in response said he agreed with Deputy O’Sullivan about the importance of EVs.

 

“We signed up to a Programme for Government that was anti-carbon not anti-car so we have to look at how we can use new technologies to enable people who do require cars to do so in a sustainable manner. Financial barriers to ownership is one reason. The level of a grant is a matter for the budgetary process - you’re getting in early. I’ll reflect your views to Minister Ryan.”