2026-04-30

97. Deputy Ciarán Ahern asked the Minister for Transport to report on the zero-emissions heavy duty vehicle purchase grant and zero-emissions heavy duty vehicle infrastructure grant schemes, including the number of applications received and funding drawn down since their inception; the steps he will take to encourage and increase uptake among those in the haulage and farming sectors; and if he will make a statement on the matter. [31741/26]

I would like to ask the Minister about the electrification of our heavy goods vehicles fleet and for a report on the zero-emissions heavy duty vehicle purchase grant and zero-emissions heavy duty vehicle infrastructure grant schemes, including the number of applications received and funding drawn down since their inception; the steps he will take to encourage and increase uptake among those in the haulage and farming sectors.

This is an important area and we have to look to electrify it. Heavy goods vehicles is one of the more challenging areas to electrify. We are committed to transitioning to a low-carbon economy by 2050. The transport sector has a significant role to play in that. The decarbonisation of heavy duty vehicles will be a key mechanism in achieving this objective within the sector. To promote the decarbonisation of HDVs, we launched the alternatively fuelled heavy duty vehicle purchase grant scheme in March 2021. That scheme was intended to help bridge some of the difference in purchase price between conventional HDVs and those powered by alternatively fuelled powertrains. In line with changes to the state aid regime, the Department amended the scheme to focus on zero-emission vehicles and launched the ZEHDV scheme in 2024. The scheme is administered by TII and funded by my Department. It awards grants to assist companies and enterprises that wish to buy zero-emission heavy duty vehicles instead of the diesel equivalent. In November 2024, the scheme was expanded to include purchase grants for recharging infrastructure. The total funding available under this grant scheme since 2024 to date is €11 million. Almost €4 million has been drawn down to support 76 vehicles - not a massive number - all of which are electric and include large HDVs, refuse trucks, large vans and buses. Using this scheme, the Department of Transport is also supporting businesses at the planning stage through the EV fleet assessment grant. This offers fully funded expert assessment to help companies understand how electric vehicles can operate within their existing fleets. In February, we published a new national EV charging infrastructure strategy for the next three years in line with the programme for Government commitment. This strategy includes a specific set of measures to support the transition of the HDV sector, taking account of a recent report, the HDV Electrification Pathway Report, which brought the haulage sector and my Department together to determine an appropriate and viable pathway for the sector.

I ask this question in the context of the €500 million package with no strings attached announced for the haulage and farming sectors. While we recognise the need for these packages, we also have to recognise this exists because of fossil fuel dependence in those sectors and it is in many ways a subsidy to the fossil fuel industry. As part of a just transition, we must make this choice easy for hauliers in particular to decide to purchase zero-emission vehicles. The figures are not great. In 2025, of 2,564 HGVs purchased in Ireland just 1.09% were zero emission. The grants available are not availed of to the full extent either - about 50% are not being availed of. What will the Minister do to encourage the use of them?

It is a fair point. The road transport support scheme is not a subsidy. It is a cost reduction measure and a viability measure for our supply chain. I do not see it as a fossil fuel grant or incentive for the use of fossil fuel. That said, it is clear the haulage sector in particular and others in the agriculture sector are heavily dependent on fossil fuel, especially heavy goods vehicles. A lot of white van vehicles have changed to EVs and hybrids. It is down to the weight carried. We had 162 electric HGVs registered at the end of 2025. Compressed natural gas is another renewable fuel. We had 157 registered in 2025, a 5% increase. Also, to be fair, in the haulage sector many firms use alternative sustainable fuels and biofuels like biogas and HVO. This is an area for which substantial grants are available but we need to create confidence in that sector that there is an alternative in using electric instead of diesel in the heavy goods vehicles space.

No country is doing particularly well in this area but even across Europe 4.5% of HGVs are zero emission and we are only at just over 1%. In China, it is up to 25%. It is leading the world in this regard. The charging infrastructure grant is important because hauliers say to us they cannot avail of this not only because of the cost of the vehicles but also the lack of infrastructure. My understanding of that grant is that €1 million was allocated last year, less than €200,000 was spent and €188,000 of that was on administrative costs. I think only one grant was availed of in that whole infrastructure scheme. Improving that has to be looked at. I ask the Minister to increase the price differential in the purchase grant scheme to 100% to incentivise, so there is no cost differential between a diesel or electric vehicle purchase. At the moment, there is still a cost to the haulier in making that decision.

The Deputy's point is well made. In the private fleet and private cars, there is a substantial increase in EV registrations. There are over 230,000 EVs on our roads. In the first quarter of this year, there was a significant increase with about 40% of all cars purchased being EVs. Heavy goods vehicles is a more complex area. Confidence needs to be instilled in the sector that there are alternatives. The Deputy is right that the level of drawdown is low. The scheme was reworked at the end of 2024. It is kept under review. I have met officials about it. We would like more supports deployed to this sector to bring the transport sector onto a more sustainable and climate-friendly footing. That can be done but the Deputy rightly pointed out it is a challenge across Europe not just here. I take the Deputy's points on board. We are keeping this under review. We will change the offerings if we can see that by changing them more people will access them. There are substantial grants and savings for businesses if they pivot to electric.