Thank you for your correspondence.
My Department is aware of the concerns from this sector in relation to the Clean Corporate Vehicles proposal. Officials from Zero Emission Vehicles Ireland have engaged with the Car Rental Council of Ireland on this proposal. For context, many Member States, including Ireland, are relying heavily on a rapid transition to deliver on their decarbonisation plans. Ireland’s Climate Action Plan target is to have 30% of the national vehicle fleet be electric by 2030. This is Ireland’s single biggest transport mitigation action up to 2030.
The proposal on Clean Corporate Vehicles forms part of the European Commission’s Automotive Package, published on 16 December 2025. It is designed to accelerate the transition to zero and low emission corporate fleets, reduce fossil fuel expenditure in road transport and accelerate the availability of zero emission vehicles on the second-hand market.
Member States retain flexibility for the implementation pathway of the national targets. The corporate fleet sector is diverse, consisting large and small companies, ranging from traditional company car executive fleets to large shipping and freight companies, last-mile delivery fleets, leasing companies and short-term rental companies. Each of these sub-sectors have unique conditions that would make a one-size-fits-all approach ineffective.
We are considering the proposal in detail in terms of how it aligns with the overall objective of incentivising demand for EVs and any wider impacts. This includes an analysis of the number and profile of companies in scope, fleet characteristics and market conditions.
It should be noted that the measure remains at proposal stage, with negotiations underway at EU level. The Regulation will not be finalised until agreement is reached between the Council and the European Parliament, a process that is expected to run through 2026. As Ireland prepares to assume the EU Presidency in July 2026, it is committed to playing a neutral and constructive role in facilitating dialogue among member states.
I hope this is of assistance.
