Dáil Éireann Debate, Tuesday - 13 January 2026
742. Deputy Carol Nolan asked the Minister for Transport to provide his response to the European Commission’s automotive package and his assessment of the package’s likely impact on the Irish automotive industry; and if he will make a statement on the matter. [1848/26]
Amharc ar fhreagraI note the publication by the Commission of the Automotive Package in December last. It is a broad ranging set of proposals which will need to be analysed individually and in the round. We will consult with key stakeholders in this analysis. Ireland does not have a car manufacturing sector. However, some aspects of the package are very relevant to our decarbonisation targets for transport, in particular the revision of the CO2 Cars and Vans Regulation and the new so called Corporate Green Fleets initiative.
There is a need for clarity and certainty in terms of EU regulation across this sector. Many EU-based companies have made significant investments in zero emission vehicles on the back of the existing regulation and the associated deadline for the phase out of ICE vehicles by 2035. Many Member States, including Ireland, are relying heavily on a rapid transition to deliver on their decarbonisation plans for transport. Ireland’s Climate Action Plan target is to have 30% of the national vehicle fleet be electric by 2030. This is our single biggest transport mitigation action for the short to medium term and the existing regulation is a key lever in supporting this ambition. The proposed reduction to 90% recognises the challenges that some areas of the EU auto sector are facing and the need for some flexibility and pragmatism in this regard. It is vital that any flexibility being proposed for auto manufacturers does not dilute the overall trajectory towards this zero emission transition.
The package proposes a Greening of Corporate Fleets initiative. The recognition of SMEs in the proposed regulation is important. We will now consider the proposal in detail in terms of how it aligns with the overall objective of incentivising demand for EVs and any wider impacts.
We also welcome the revision of the car labelling directive with the intention of increasing the visibility and awareness of the energy efficiency and carbon footprint of vehicles. Ireland has been engaging with the Commission on this initiative with a view to enhancing its impact.
There are also simplification elements to the package which are aimed at encouraging the production of small affordable EVs which I welcome in principle given the question of affordability of EVs for many. However, there are also potential road safety concerns if new category for small affordable EVs is used to remove future requirements for safety equipment and features required for other vehicle types.
We will continue to engage constructively with the Commission and member states on the package with a view to supporting both competitiveness and decarbonisation goals in a balanced and pragmatic manner.
