Minister O’Brien announces €10 million funding for ICE2EV scheme, accelerating the switch to electric vehicles

Minister for Transport, Darragh O’Brien, today announced a new limited scheme, designed to accelerate the transition from older, high-emitting internal combustion engine (ICE) vehicles to cleaner electric vehicles (EVs).
 
The ICE2EV Scheme will launch on 1 July and be administered by the Sustainable Energy Authority of Ireland (SEAI). It is a targeted measure to reduce emissions, by removing ICE vehicles aged over 13 years from Ireland’s private car fleet and replacing them with new battery EVs.  
 
Minister O’Brien said:
“There are almost 235,000 EVs on Irish roads today, and we are on course to reach many multiples of that figure in the coming years. I want to support even more households to  switch away from older, more polluting cars and on to electric vehicles. So for anyone considering changing an older car, I encourage you to make the move from ICE to EV. It is a practical and effective step towards reducing emissions and improving air quality across Ireland.”
 
“Older vehicles are among the highest emitters in our transport system, and many households face real financial barriers in moving to cleaner alternatives. ICE2EV is designed to bridge that gap, helping people make the switch while delivering immediate and measurable reductions in emissions.”
 
Minister of State with responsibility for International and Road Transport, Logistics, Rail and Ports, Seán Canney said:
“The ICE2EV scheme provides meaningful financial support to help households move away from older, more expensive-to-run cars and into cleaner electric vehicles. This has clear benefits for transport affordability, air quality, and efficiency of our domestic vehicles, and will contribute to reducing transport emissions. The benefit to rural communities is especially welcome, where we know people depend on cars to get around.”
 
Minister of State with responsibility for Rural Transport Jerry Buttimer said:
“ICE2EV is an important step in making electric vehicles more accessible to a wider range of households, particularly in rural communities where car dependency is often greatest. By targeting older, higher-emitting vehicles, we are ensuring that this investment delivers real environmental benefits while supporting people to make a practical and affordable choice for cleaner transport.”
 
William Walsh, CEO at SEAI said:
"At SEAI, we've seen first-hand how much of a difference switching to an electric vehicle can make to the cost of running a household, while improving everyone's quality of life through improved air quality and reduced emissions. I really welcome today's announcement, which will help even more people make the change."
 
The initiative is backed by €10 million in funding from the Climate Action Fund under the Department of Climate, Energy and the Environment. To ensure balanced access, 65% of the funding will be allocated to rural applicants and 35% to urban applicants, based on Central Statistics Office Census 2022 definitions.
 
Eligible applicants can receive €5,000 for the permanent removal of a qualifying ICE  vehicle registered in 2013 or earlier. The payment must be used towards the purchase of a new battery electric vehicle. It is additional to the existing €3,500 EV grant administered by the SEAI, bringing total available support up to €8,500 per vehicle.
 
Applicants must demonstrate on the date of application that the ICE vehicle:
·       has been registered in their name within the State for at least 12 months prior to the application;

• holds a valid NCT certificate, or one expired by no more than six months;
• has been taxed and insured for road use during the six months prior to the application. 

 
ICE2EV is designed to address a persistent emissions challenge within the private car fleet: the continued use of older, high-emitting ICE vehicles, often among households facing financial barriers to transitioning to EVs. By focusing on this segment, the Scheme will help to ensure that the most emissions-intensive vehicles are replaced with zero-emission alternatives, delivering both climate and public health benefits.
 
In addition, Minister O’Brien announced a change in the existing SEAI Electric Vehicle Purchase Grant. The maximum eligible vehicle price threshold for grant will now be €50,000, rather than €60,000. This change has been made to target funding for EV transition towards lower price bracket cars, enabling a greater proportion of the funding available within the National Development Plan to support the roll out of public charging infrastructure. This is in line with the draft EV charging strategy published in February 2026.
 
 
Minister O’Brien said:
“Reducing the price cap ensures that public funding is focused on supporting more affordable electric vehicles and delivers better value for money for taxpayers. It reflects the growing availability of lower-cost EV options and allows us to support a greater number of households in making the transition. It also means we can focus a greater proportion of available funding on rolling out much needed EV charging infrastructure”
 
The amended price threshold will come into place for new applications received after 31 July 2026. It will not affect applications approved or submitted prior to this date, which will continue to be assessed under the current threshold.
 
Further details on ICE2EV, including application processes, will be made available by the SEAI ahead of the launch date.