BusinessOpinion

Relying on switch to EVs will see Ireland miss its transport carbon targets

Low-carbon liquid fuels are a practical and immediate solution to curb emissions in the transport sector

Is Ireland’s green future at risk as we are relying on electric vehicles (EVs) alone to decarbonise transport?

While I support the Irish Government’s ambitious climate targets, achieving them requires a focus on efficacy rather than ideology.

At the risk of labouring a transport metaphor, Ireland is at a climate crossroads. The road we take next will have impacts far into the future. We urgently need a pragmatic approach to climate action, particularly in the realm of transport. Unfortunately, the Climate Action Plan 2024, while ambitious in its aspirations, often falls short of providing the pragmatism required for immediate emission reductions.

One example of this disconnect is the Government’s singular focus on electrifying the entire private transport fleet, particularly passenger vehicles. While EVs are generally regarded as the primary sustainable transport solution, they are not without limitations, especially concerning heavy goods vehicles and the challenges posed by battery weight.

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Even if Ireland achieves the target of almost 1 million EVs on Irish roads, the majority of cars in the State will still rely on liquid fuels in 2030. As we transition to an all-electric fleet, it’s evident that reducing emissions from the remaining internal combustion engine (ICE) vehicles emitting at current high levels is imperative.

The question then arises: should we passively tolerate these ongoing pollution levels, or actively seek ways to cut emissions during this transition period?

Low-carbon liquid fuels (LCLF) are a practical and immediate solution to curb emissions in the transport sector. The transition to E10 petrol last year in forecourts across the county resulted in significant carbon emissions savings. In fact, the carbon emission reductions from the adoption of E10 fuels surpassed the reductions achieved by all EVs on Irish roads combined. This success underscores the potential of low-carbon liquid fuels, such as Hydrotreated Vegetable Oil (HVO), to complement EVs in reducing emissions and advancing our climate goals.

Emissions will be reduced by following a nuanced approach where multiple sustainable energy sources, including advanced, synthetic and biofuels, work in tandem with EVs to achieve emission reductions. Placing all bets to reduce carbon emissions on EVs while ignoring other viable alternatives only serves to slow and hinder progress towards our 2030 targets and the overall goal, supported by Fuels for Ireland, for Ireland to be completely net zero by 2050.

As such, the Government’s reluctance to embrace a technology-neutral approach not only impedes the widespread adoption of LCLFs but is also perversely resulting in the greater release of carbon emissions. Financial barriers, such as the pricing disparity between HVO and traditional diesel, inhibit consumers from making environmentally conscious choices. To overcome these barriers, there is a need for Government action to support and incentivise the adoption of advanced, synthetic and biofuels and make them economically accessible for consumers.

This drive to reduce emissions needs to extend beyond the transportation sector and encompass domestic heating, where heat pumps are often championed as the sole solution. While heat pumps undoubtedly have their merits, insisting on a one-size-fits-all approach overlooks the reality that a significant number of households still rely on liquid fuel boilers. A technology-neutral stance is essential to explore alternative heating solutions, including LCLFs, which emit significantly fewer emissions than traditional oil.

The necessary changes in the country’s transport sector will affect Ireland’s taxation and economic model. Put simply, how the exchequer receives income from certain taxes, such as excise duty, will change as we transition to new modes of transport. It is heartening that the Department of Finance is looking at ways to gather inputs from relevant stakeholders to best evaluate policies to put Ireland on the road to economic prosperity and net-zero emissions.

Overall, there needs to be a comprehensive review of fiscal policies relating to energy for transport and heating. We see the solution in implementing innovative taxation strategies that encourage the transition to low-carbon liquid fuels without burdening consumers. I fully support the establishment of a group of experts to discuss these issues and provide advice and recommendations in such a way as to enable department officials and political leaders to develop a fiscal strategy on energy that best promotes and protects the interests of the Irish Government, citizens and business community.

As we envision the forecourts of the future as dynamic energy and community hubs, the role of LCLF becomes even more pronounced. Expanding convenience retail offerings and recreational spaces at forecourts aligns with our commitment to sustainability and community engagement. However, bureaucratic obstacles and grid capacity constraints hinder the expansion of EV charging infrastructure at forecourts, underscoring the need for Government intervention to accelerate progress in this area.

Biofuels are already blended into transport fuels. However, in the transport sector, we must realise the potential not only of changing transport technologies, but also the energy sources for technologies. Around the country, various forecourts also now offer customers the option to fill up their cars with HVO renewable diesel, allowing them to reduce their emissions by approximately 90 per cent in the process. There are also already more electric vehicle charging points on Irish forecourts than in other European Union member states. Forecourt operators want to do a lot more, but the electricity network isn’t up to it.

We stand at a critical juncture where the urgency of our climate crisis demands bold and decisive action. Continuing with the same failing policies will not produce different results. We must embrace a diverse array of approaches to decarbonise, including transitional solutions that pave the way for a sustainable future. The time for complacency has long passed.

Kevin McPartlan, CEO of Fuels for Ireland