Sales of low-emission cars have doubled since new tax

SALES OF cars which produce lower greenhouse gas emissions have more than doubled since new taxes came into force last July,according to a report by Sustainable Energy Ireland (SEI) published yesterday.

The report by the statutory body shows that between July and the end of October, 84 per cent of new cars sold in the Republic were classed as A, B, or C, the three grades with the lowest carbon emission rates.

The report, Energy in Ireland 1990-2007, shows that over the same period last year just 41 per cent of cars sold here fell into one of those three classes.

Brian Motherway, head of SEI’s industry programme, said yesterday he believed the shift to more environmentally-friendly cars was a result of the new tax regime.

In December last year the then minister for finance, Brian Cowen, announced that the Republic’s vehicle registration and road tax regimes would be based on carbon dioxide (CO2) emissions instead of engine size.

The tax applies to cars bought since July of this year. It rates vehicles in seven bands, ranging from A to G. A is the lowest, emitting 120g to 140g per km, and G is the highest, with more than 225g per km.

The motor tax charges for the three lowest grades range from €100 to €290, while the levy on G-rated cars is €2,000.

While fuel efficiency determines ratings, as a general rule the bigger a vehicle’s engine the more fuel it uses, and thus the more greenhouse gas it emits.

Minister for the Environment John Gormley said yesterday the figures showed the change in approach to motor and vehicle registration tax was having an impact.

“The changes we introduced are encouraging people towards low-emissions vehicles. Irish consumers understand that low-emission cars are good for the environment and good for their pockets.”

Mr Motherway said the figures covered just 7,500 cars sold between July and October. “We have yet to see data for a full year.”

Overall, the report shows that while the Republic’s energy demands increased as the economy grew over the 17-year period that the document covers, energy use also became more efficient.

In 2007 every €1,000 generated by the economy burned 90kg of oil, while in 1990 it took 150kg of oil. “In energy/gross domestic product terms, we’ve become 40 per cent more efficient.”

Mr Motherway added that the Republic needed to keep moving in that direction.

SEI is a Government and EU-funded statutory body charged with promoting and aiding the development of sustainable energy.