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Home Electric Cars Electric vehicle subsidy program for taxis hits budget limit

Electric vehicle subsidy program for taxis hits budget limit

Taxi drivers looking to switch to cleaner electric vehicles have been told there is no funding left to fund a grant program designed to incentivize such changes, even as the government tries to accelerate its green agenda.

Taxi drivers have been a particular target for incentives as they travel significant kilometers in diesel vehicles, especially in urban environments.

Earlier this year, Transport Minister Eamon Ryan announced a dramatic expansion of the electric program for small public vehicles (eSPSV) with 15 million euros. The budget for grants was previously only 1 million euros.

“An efficient and low-emission public transport is the top priority for my department,” he said at the time. “This program will play a critical role in reducing greenhouse gas and air pollutant emissions while normalizing the use of electric vehicles in Ireland.”

Taxi drivers who scrap older cars for a new fully electric model have received grants of 20,000 euros. In the case of wheelchair-accessible equipment, the grant increases to 25,000 euros.

But taxi drivers have now been told that there is no more money in the budget for this year and there is no clarity about what will be available next year.

The uncertainty comes as the minister reiterated the government’s commitment to tackling vehicle emissions by announcing the closure of the hybrid vehicle grant program, with support to focus entirely on all-electric vehicles from next year onwards.

According to the latest data from the National Transport Authority, there are 18,723 registered taxis and hackneys in the state, more than half of which are Dublin based. The eSPSV budget of 15 million euros for this year would have covered the costs for 750 taxi drivers who would switch to fully electric vehicles.

A spokeswoman for the Ministry of Transport said the “greening” of the taxi fleet is an important initiative of the government, “as these are vehicles with high mileage, which are mainly stationed in cities and whose switch to electric vehicles will not only reduce CO2 but harmful air emissions” .

“The programs to get taxis and Hackneys to switch to electric vehicles have been very successful so far in 2021, with funds fully committed by the end of September,” she said.

“The department is now examining them in detail to get further programs off the ground for 2022, the details of which will be announced by the end of the year.”

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