Green car sales rise after incentives introduced

TAX INCENTIVES aimed at encouraging motorists to buy greener, more energy-efficient cars are working, according to a report from Sustainable Energy Ireland (SEI).

The Energy in Transport Report 2009, published yesterday, also found a significant drop in the overall level of energy used in transport – particularly in road freight – since the recession took hold in 2008.

While car sales are down by 62.4 per cent in the first 10 months of this year, the report found the percentage of more energy-efficient cars was rising rapidly since the introduction of new vehicle registration and road tax bands in July 2008.

The report reveals private cars in the most efficient emission bands – A, B and C – made up 73 per cent of new cars purchased after the introduction of the new rates, compared with just 43 per cent for the first six months of 2008. It notes the change has not entailed a move towards smaller engine sizes. Instead, diesel cars have doubled their share of sales between the first and second halves of 2008.

Despite the downturn, Ireland’s total vehicle fleet continued to grow, according to the report, with almost 2.5 million vehicles in the State at the end of 2008, a 2.3 per cent increase on 2007.

The majority of vehicles were private cars, accounting for 77 per cent in 2008, while goods vehicles comprised 14 per cent of the total vehicle fleet. Average CO2 emissions of new cars purchased in the year between July 2008 and 2009 have fallen by 12 per cent.

The report also confirms a 6.7 per cent reduction in road freight energy use in 2008, reflecting the downturn in construction activity and the economy in general. This compares with strong average growth of 8.2 per cent per annum between 1990 and 2007.

Dr Brian Motherway, SEI head of strategy, said transport was “a huge fuel user, accounting for more than one-third of Ireland’s total primary energy demand”. He said the car tax changes had altered car-buying patterns.

Green Party transport spokesman Ciarán Cuffe said: “Today’s SEI report shows that green policies do work. As a direct result of changes made by Environment Minister John Gormley to car tax and VRT, consumers have modified their behaviour and turned to fuel-efficient cars.”