How Clean is Your Car?

Transport Energy Usage in Ireland

The transport sector in Ireland is a significant fuel consumer. In 2008, it accounted for 35% of Ireland's primary energy demand or 42% of final energy demand, consuming more than twice as much as industry.

  • In 2008, energy use in transport was over 99% dependent on oil products, all of which were imported. The sector with the second highest oil dependency was the residential sector where oil accounted for 39% of total fuel usage.
  • Final energy use in the transport sector has grown by 178% (5.8% per annum on average) between 1990 and 2008, the fastest growth rate of all sectors. Estimated total spend on transport energy, excluding air, in 2008 was €5.9 billion.
  • There was a switch in the transport energy shares of petrol and diesel between 1990 and 2008.  Petrol has a 47% share of transport fuels in 1990, this fell to 34% in 2008. Diesel rose from a 34% share in 1990 to a 48% share in 2008. Kerosene accounted for 17% of transport energy in 2008.  Biofuels more than doubled in 2008 to achieve a 1% share in transport energy.
Figure 1 Energy Usage Growth transport Sector 1990 - 2007 - Index (Source: Odyssee)
Figure 1 Energy Usage Growth transport Sector 1990 - 2007 - Index (Source: Odyssee)
The graph above represents the growth in the transport sector total fuel demand since 1995. Irelands demand grew significantly faster than the other European countries and the EU-27.

The 2008 Budget announced that the VRT and AMT systems were to change with effect from 1st July 2008. The new system links the tax rates directly to specific CO2 emissions (CO2 g/km) rather than engine size. It established a strong purchasing signal, promoting lower-emissions cars.

Since the introduction of the tax changed a car with a market value of €20,000, for example, will have a VRT rate of €2,800 (and annual motor tax of €104) if it is in Band A, compared with a VRT rate of €7,200 (and annual motor tax of €2,100) if in Band G.  There is also almost a four fold increase in annual running costs (annual motor tax & fuel costs) in a Band G car when compared to the annual running costs of a car in Band A.

Figure 2 shows the evolution of the weighted average specific CO2 emissions of new cars between 2000 and 2008.  Between 2000 and 2007 the average CO2 emissions were approximately 166 g/km for both petrol and diesel. The effect of the tax change during 2008 can be seen however with most car sales occurring in the first half of the year the impact of the change was tempered in 2008. There was a 9% reduction in the average specific CO2 emissions of new cars in the first semester of 2009.

Figure 2 Specific CO2 Emissions of new cars in Ireland 2000 - 2008. (Source: SEI based on Vehicle Registration Unit and Vehicle Certificate Agency (UK) data)
Figure 2 Specific CO2 Emissions of new cars in Ireland 2000 - 2008. (Source: SEI based on Vehicle Registration Unit & Vehicle Certificate Agency (UK) data)
Between 2000 and 2005, the combined share of label bands A, B & C emission bands (i.e. cars <155 g/km) was on average 35%; in 2006/07, it rose to 41%. Before the tax change came into effect in 2008, the share of these three bands was 43%. After the introduction of the change, in July to December, the share of these bands rose to 73%.  In the first six months of 2009 it increased again to 78%. In the calendar year of the new taxation system (Jul ’08 to Jun ’09) the average specific emissions of the new car fleet was 145 gCO2/km, a 13% reduction relative to the average before the VRT / AMT change.

For further details on transport energy use in Ireland, please click here to download SEAI's report 'Energy in Transport'.