Report finds private cars contribute to 40% of Ireland’s energy and cost drivers over €10,000 annually
Dublin, 23 August 2024 – Mobility Partnership Ireland (MPI), an industry group representing leading Irish companies in the shared transport sector, has issued a call on government for vital policy action to address the critical level of transport emissions and increased consumer costs amidst the ongoing climate and cost of living crises.
MPI, comprised of members from Aircoach, Enterprise Mobility, GoCar, FREENOW, Payzone, Bleeper, Moby and Toyota Yukõ, is set to hold a briefing information session for TDs and Senators, on their pre-Buget submission at Buswells Hotel, Kildare St. Dublin, on Wednesday 25th September.
As Ireland strives to achieve its international commitment of a 51% reduction in Greenhouse Gas (GHG) emissions by 2030 and carbon neutrality by 2050, the transport sector remains a significant contributor to emissions. In a recent report commissioned by MPI, findings showed that in 2022, transport accounted for 41.7% of total energy consumption in Ireland, making it the largest sectoral consumer of energy. Private cars alone contributed 40% of this energy demand, while public transport by road accounted for just 1.3%.
In 2021, private cars across Ireland drove an average of 13,436 m annually, or about 36km per day. In Dublin, the daily distance was even lower, with the average private car covering just 30km per day, amounting to 10,864km per year. The data limited daily use of private cars in Dublin, suggests a strong case for expanding shared vehicle schemes in the city.
Recent figures from 2023 on the average private car emissions of 98.4 g CO2/km, show if 10,000 petrol and diesel (ICE) cars were removed from the fleet, and if the owners joined a car share scheme based on battery electric vehicles (BEVs), there would be an annual removal of 15,176 tonnes of CO2.
Private vehicle ownership can cost up to €10,691 annually per person, factoring in tax, insurance, repairs, and incessant rising fuel costs. By June 2024, petrol and diesel prices had risen by 36% and 44%, respectively, compared to January 2021.
Given the short distance that Irish drivers cover daily, increasing the availability of shared mobility services— such as car rentals, e-bikes, ride hail and scooters—could significantly reduce the need for private car ownership. This would lower costs for commuters and decrease traffic congestion and emissions in both urban and surrounding areas. Expanding these options would allow people to rent vehicles only when needed, fostering a more sustainable and cost-effective transportation system.
Commenting on the launch of MPI’s budget submission, Brendan Grieve, Chair of Mobility Partnership Ireland, said, “There is widespread recognition for the power of shared mobility to reduce car dependency and emissions, and enhance well-being, as noted in the CAP 23 commitment to develop smart, shared mobility, and methods to replace private cars. Operators such as those in car-sharing, e-bike and bus networks are already playing a pivotal role in this transition.”
With a strong culture of private car ownership in Ireland MPI has stressed the urgent need for collaboration between the Department of Transport and shared mobility providers. Aiming to influence coherent policies to encourage technological advancement such as simple payment solutions and enhance the overall transport ecosystem through affordability and choice, MPI’s pre-budget submission outlines the following policy recommendations:
- Minimal VAT rate on the hire of e-bikes
- Simplifying the VAT rate on vehicle hire
- Waiving tolls for shared mobility during off-peak hours
- Reducing all bus passenger fares by 20%
- Tax-free shared mobility allowance
Among examples of successful shared mobility solutions in Ireland is Dublin Bus with figures to show 92pc of its carbon emissions have been reduced for every kilometre travelled by its customers who opted to travel by bus over private car.
Grieve adds, “Nevertheless, support and incentives from government are vital to ensure meaningful and long-lasting behavioural change in Ireland’s move towards a more sustainable and viable transportation system.”
In addition to the cost and environmental savings, shared mobility offers advantages such as creating accessible mobility options for those with limited physical ability, offering last mile and first mile solutions, create equitable access to jobs and other resources.
Founded in 2021, Mobility Partnership Ireland represents a coalition of bike hire, vehicle rental, taxi, bus services, and payment solution providers committed to advancing sustainable shared mobility. MPI serves almost four million commuters, playing a crucial role in Ireland’s transport system and advocating for innovative, commuter-centered transport policies.
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