Irish EV Grants Fail All But The Rich

Before we begin, we’ll state the usual, important caveat: public transport and active travel are undeniably the most sustainable forms of transport in the face of the Climate Crisis. That is not up for debate.

We cannot escape that car culture is a dominant force in Irish society, in much the same way that it is across the Global North. Owning a car has been sold to us as a sign of success, a sign of power and used to reinforce societal gender stereotypes.

Our use of cars is so commonplace that more than 105,000 new cars were sold in Ireland in 2022 alone, in the midst of a cost-of-living crisis. Yet, in spite of the imminent threat of the Climate Crisis, 76% of all the new cars sold in Ireland last year were entirely reliant on fossil fuels – no matter what manufacturers tell you about hybrids being ‘green’.

Given the prominence of fossil fuel vehicles, especially highly polluting diesels, we believe that battery electric vehicles (those which are 100% electric) represent an opportunity to lower harmful greenhouse gas emissions rapidly in the short term to improve both public and planetary health as a transition technology – not a silver bullet.

However, as we move further into 2023, we find that support for people to make the transition to electric vehicles is increasingly coming under threat.

Furthermore, the research suggested that EV chargers were not only more likely to be owned by higher income people, but also people who had a higher level of car ownership compared to the average Irish population.

The paper concludes: “In Ireland, a country with low take up rates for EVs, the current policy seems to be only taken up by those in more affluent areas with higher incomes. This has the potential of having an impact upon equity and just transition; as if the price of traditional fuels increase, such policies could have a disproportionate impact upon those living in deprived areas with lower income levels.”

In short, the current EV incentives help the rich to stay rich, while the poor get ever poorer.

The subsidies to buy an EV – let alone to install a home charger – are tiny and have very little impact on lowering the initial cost to buy, which is the single biggest hurdle to adoption.

Furthermore, there is no support for an affordable second hand EV market, with used electric imports from the UK hit with excessive VRT and import taxes that make them considerably less affordable for anyone who wants an EV but can’t afford a new one.

Somehow the Irish Government is of the opinion that current EV incentives will have a trickle-down effect on the second-hand market in a short space of time, aiding those with average or lower incomes. However, the last few years have shown that this standpoint is, frankly, deluded.

At IrishEVs, we are gravely concerned that this situation will dramatically worsen energy poverty in the coming years if it is left unchecked.

Battery electric vehicle (BEV) sales currently stand at less than 15%.

In the same article, O’Grady stated that they may look to retain the grants for some rural dwellers, but they have yet to give any solid or transparent details about what will happen from July onwards, when the grants are set to be cut.

We approached O’Grady on a number of occasions for comment about the concerning lack of transparency, how this may increase energy poverty, and how the Irish Government can justify its claims that EV sales will soon be at 50% when this will require more than triple the current sales without the grants to cut costs.

We also asked whether the Government is finally ready to remove the unnecessary taxes on used electric car imports from the UK in order to stimulate an affordable second-hand market that would help people to transition sooner.

We received no response.

Furthermore it threatens to place many more Irish people and families further into energy poverty, as fuel prices continue to rise and with the proposed ban on internal combustion engine vehicles in 2030, people are going to be left with stranded assets.

Their current cars will cost more to run, and they will be penalised for not making a switch that they couldn’t afford and weren’t supported in making. With salaries failing to rise in line with rent, food and other cost of living factors, it is clear that current incentives are only exacerbating energy poverty.

Yes, we absolutely must tax fossil fuels in order to reduce their use and to show the terrible harm they wreak on both human and planetary health, but where are the alternatives?

Grand promises of investment in public transport and active travel are, at best, slow to materialise outside Dublin, and in rural areas there is no consideration giving to connectivity, accessibility or ease-of-use for public transport.

Instead there are plans to increase parking costs by 400% and further drive up the cost of fuel while implementing congestion charges. These would be welcome changes if there was ample support to aid people in making that transition but the Irish Government is all stick, no carrot.

This is an unjust climate transition.

Once again the Government are entirely asleep at the wheel, and it is us and future generations who are sorely paying the price.

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