Ireland announces €10m in funding for EV scrappage scheme

A newly announced scrappage scheme in Ireland aims to help consumers replace aging ICE vehicles with new battery electric vehicles. Applicants could receive up to €5000 in addition to other grants if they agree to scrap an ICE vehicle registered in 2013 or earlier.

Ireland green flash license plate — Image: Irish Department of Transport

Announcing the ICE2EV scheme, Ireland’s Minister for Transport Darragh O’Brien said it is backed by €10 million in funding from the government’s Climate Action Fund. 65 per cent of funding will be allocated to applicants in rural areas with the remaining 35 per cent earmarked for urban residents. The scheme is set to launch on 1 July 2026.

According to the Ministry, eligibility for the grant will be determined based primarily on the age of applicants’ ICE vehicles, which must be older than 13 years. Applicants must also prove that their vehicle has been registered in their name for at least 12 months, holds a valid NCT certificate, and has been taxed and insured for road use for six months prior to the date of application.

In return for scrapping their ICE vehicle, applicants will receive a €5000 payment which must be put towards the purchase of a new BEV. The Irish government confirmed it can be used in addition to the existing €3,500 SEAI Electric Vehicle Purchase Grant; the price threshold of which has also been lowered to €50,000 down from €60,000 for applications received after 31 July. This brings the total level of possible grant funding for new BEVs up to €8,500.

Describing the scheme as a way to ‘address a permanent emissions challenge within the private car fleet’, O’Brien said: “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.”

Commenting on the scheme’s rural targeting, Ireland’s Minister of State with responsibility for Rural Transport Jerry Buttimer added: “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.”

gov.ie