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.

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.

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.