Minister for the Environment Dick Roche has asked officials in his department to draw up proposals which would see cars being taxed on their greenhouse gas emissions as opposed to their engine size.
He was reacting to a report in yesterday's Irish Times that showed that the increasing popularity of luxury cars and sports utility vehicles (SUVs) was contributing significantly to greenhouse gas emissions and eroding energy savings in other areas.
The number of large cars and SUVs has nearly trebled since 2000, according to figures from Sustainable Energy Ireland, with in the region of 200,000 vehicles with engine sizes of two litres or more now on Irish roads.
Large SUVs and sports cars can emit more than three times the amount of greenhouse gases when compared to the most fuel-efficient petrol cars on Irish roads. A consultants' report given to the Government last week estimated that the current trend towards larger vehicles would add an additional 1.5 million tonnes to Ireland's greenhouse gas emissions between 2008 and 2012.
At present the vehicle registration and annual motor tax is based on engine size, but means that heavier SUVs and luxury cars, which pollute more, are charged the same level of tax as other more fuel-efficient cars with the same engine size.
Speaking to The Irish Times yesterday, Mr Roche said he had asked his department to draw up a "methodology" on how to "green the motor tax system".
Other countries, such as Britain, have introduced motor taxation systems where cars are taxed based on the amount of greenhouse gases they produce.
"The greening of motor tax is a commitment in the programme for Government," Mr Roche said.
"I've asked my officials to draw up a methodology as to how it might be done, but it's at a very preliminary stage."