Ireland's Fossil Fuel Dependence in Transport Sector Risks Oil Price Shocks, Warns CCAC

The Climate Change Advisory Council (CCAC) has warned that Ireland's high dependence on fossil fuels in the transport sector makes it vulnerable to oil price shocks. In its annual review, published last week, the CCAC stated that Ireland risks repeated exposure to oil and gas price volatility until it reduces this dependency. The council recommended accelerated investment in public transport and infrastructure for electric vehicles (EVs), including a broader rollout of charging points.

This review aligns with the Environmental Protection Agency's (EPA) progress report, which found Ireland is behind on greenhouse gas emission targets, primarily due to fossil fuel reliance in transport, responsible for over a fifth of Ireland’s CO2 emissions. Fewer than 10% of cars on Irish roads are electric or hybrid, with impediments including a lack of charging points, especially in rural areas, and cost.

The Government recently announced a €10 million pilot scrappage scheme to encourage EV purchases. The CCAC advises using current oil price volatility to accelerate the shift from fossil fuels, particularly in transport and EVs. It also emphasizes that for EVs to effectively cut emissions, the electricity powering them must come from alternative sources, highlighting the importance of meeting wind energy targets.