Why The Irish Government Must Subsidise EV Conversions

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At the time of writing, it is late July and the Irish Business Post has reported that the Irish Government is considering cutting the already paltry subsidies in place for electric cars.

This comes just months after the publication of a brilliant academic research paper by Brian Caulfield, Aoife Foley, Dylan Furszyfer and Agieszka Stefaniec at Trinity College Dublin which made clear that current EV incentives were failing to support a just transition.

The findings of the report state: “An income and equity gap exists between those that have adapted electric mobility. This finding is very important because it suggests that lower income categories may have a financial barrier to shifting to EVs.”

This clearly demonstrates the importance of kick-starting an affordable second-hand electric car market here in Ireland – something the Irish Government has blocked at every turn.

Today, we look at why this is so important, how it can be addressed and the role that EV conversions can play in providing affordable electric cars in the middle of a cost of living crisis – and ask you to make your voice heard.

Do More With Less

A key mantra for tackling the Climate Crisis is doing a lot more with a lot less.
Converting petrol, diesel and hybrid cars to run as full EVs is a great example of this – as it takes cars that run perfectly well, but which have high and harmful emissions, and delivers all the benefits of electric cars – such as lower running costs and no air pollution – at an affordable price.

If you are new to the idea of EV conversions, we’ve written a full guide on how EV conversions work, and also how the Irish Government can support the development of this industry.

This is entirely possible, as we are already seeing EV conversions take off in other countries where subsidies are in place to help grow conversions at scale – it just takes a change of approach that prioritises a circular economy.

Transport is the second biggest sector for CO2 emissions in Ireland - after agriculture - with private cars accounting for the majority of these emissions. While investment in public transport and active travel is arguably more important in the face of the Climate Crisis, replacing all cars with EVs would cut 6 million tonnes of CO2e per year with major health and climate benefits. Credit: Irish EPA

We have previously seen the Irish Government offer scrappage schemes for cars – but this has come at the cost of creating a vast amount of new metal, plastic and oil waste. By funding EV conversions instead of supporting scrappage schemes, the Government can not only avoid unnecessary waste, but also help to keep natural resources in the ground, by effectively recycling the cars that we already have.

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The French Model

Previously we have written about companies like New Electric, a private company which has converted everything from boats and tractors, to cars and trucks to run as fully electric vehicles. However, a new contender has emerged as a model to follow when it comes to affordable EV conversions.

France is really setting the benchmark when it comes to national action on EV conversions. The Government there is working with a company called Transition One to provide a fully converted, fully electric car for just €5,000 after subsidies.

Companies like Transition One are targeting the most popular car models to create affordable kits that replace the engine and fuel tank with a motor and battery. This can be done for as little as €5,000 - but only with Government support. Credit: Transition One

Right now, the Irish Government is only offering subsides for brand new EVs, which is fine if you have €40k-60k just lying around, but that is well beyond the means of the average person in Ireland – especially in the middle of a cost of living crisis.

And this has huge consequences for air pollution, public health and the Climate Crisis.

Affordable Used EVs

What we urgently need to see from our Government is direct support for the creation of an affordable second-hand electric car market here in Ireland, so that the majority of people can benefit from their lower running costs and reduced air pollution.

The Government’s current strategy of top-down investment just isn’t working, and we have known for years that this wouldn’t work.

So few people can afford a brand new EV that the second hand market is tiny and cars are holding their value for longer, meaning that there is no trickle-down effect from the subsidies.

Yet an affordable second hand market can be easily achieved if the Government changes tact.

Firstly, they must remove unnecessary import tariffs on used EVs from the UK. For example, a 2018 Nissan Leaf can be bought second hand in the UK for around £5k-6k, while the same model in Ireland costs upwards of €10k-12k.

However, current import tariffs – 10% customs duty, 21% VAT and VRT too – means that anyone buying a second hand model in the UK will likely end up paying more than buying the same model over here, even with our artificially-inflated prices.

Removing these unnecessary tariffs is simply a must.

Furthermore, by subsidising the creation and development of an EV conversion industry we can get affordable electric cars on the road a lot faster – with all the benefits for lowered air pollution, lower running costs for drivers, less waste, creating new jobs, and hitting our emissions targets.

Hold Manufacturers Accountable

For too long the Government’s top-down approach has benefitted business while making individuals struggle as the cost of living crisis worsened.

A car graveyard storing some of the 11 million cars affected by the Dieselgate Emissions Scandal. Remember that VW knew that these vehicles were cheating tests - and that a 2022 study found that each cheating VW car per 1,000 cars caused an infant mortality rate increase by 1.75%. Credit: Wikicommons

While there isn’t a huge financial incentive for manufacturers to support ICE to EV conversions right now, we shouldn’t overlook the value that this offers to their brand in terms of strengthening their public image.

A great example of this is the VW Group. Over the last three years, they have made $155 billion (€152bn) in gross profit – but we’re now just a few years on from the Dieselgate Emissions Scandal and millions of cars still litter parking lots around the world as a result of it.

Any manufacturer supporting our government in offering these vehicles a useful second life would certainly benefit from an improved reputation – while having a more meaningful impact than the majority of their corporate social responsibility (CSO) greenwashing projects that they currently invest in.

Make Your Voice Heard

If you feel that the Government’s top-down strategy is helping those who already have the means to change, and making the wealthy richer while the rest of us struggle to make ends me – we want you to speak up.

Sign our petition calling on the Irish Government to offer subsidies for EV conversions that a ready supply for low-waste, affordable EVs is made available to the average person.

Make your voice heard here: https://my.uplift.ie/petitions/demand-government-subsidies-for-ev-conversions-in-ireland