Ireland Launches ICE2EV Scheme to Accelerate Electric Vehicle Adoption

Ireland is introducing a new incentive program aimed at accelerating the transition to cleaner transportation and reducing emissions from older passenger vehicles. Announced by the Minister of Transport on June 3, the ICE2EV Scheme will officially begin on July 1, 2026. The initiative focuses on encouraging owners of aging internal combustion engine (ICE) vehicles to retire their older cars and switch to new battery-electric vehicles (BEVs), supporting the country's broader climate and transport decarbonization objectives.

The scheme will be administered by Sustainable Energy Authority of Ireland (SEAI) and is designed as a targeted measure to remove higher-emission vehicles from the national fleet. Under the program, eligible motorists who scrap qualifying gasoline or diesel vehicles registered in 2013 or earlier and purchase a new BEV will be able to access additional financial support. The approach is intended to directly reduce transport-related emissions while promoting wider adoption of zero-emission vehicles.

Funding for the initiative totals EUR 10 million and is being provided through the Climate Action Fund under the Department of Climate, Energy and the Environment. To ensure equitable access across different regions, the funding allocation has been structured to prioritize both rural and urban applicants. Specifically, 65% of the available funding will be reserved for rural applicants, while the remaining 35% will be allocated to urban applicants.

ICE2EV Scheme Incentive Structure

The program combines a new scrappage incentive with existing electric vehicle support mechanisms already available in the market. This layered approach increases the overall financial attractiveness of transitioning from an older ICE vehicle to a battery-electric model.

Available Financial Support Under the Scheme

Eligible applicants can receive EUR 5,000 through the ICE2EV Scheme when scrapping a qualifying vehicle and purchasing a new battery-electric vehicle. This incentive is offered in addition to the existing EUR 3,500 EV grant administered by SEAI. As a result, consumers may access combined support of up to EUR 8,500 per vehicle, creating a stronger financial case for replacing older gasoline and diesel vehicles with electric alternatives.

Frequently Asked Questions

What is the ICE2EV Scheme in Ireland?
The ICE2EV Scheme is a government-supported vehicle replacement program launching on July 1, 2026, to help reduce emissions from older vehicles. It encourages owners of gasoline and diesel vehicles registered in 2013 or earlier to scrap those vehicles and purchase new battery-electric vehicles. Administered by the Sustainable Energy Authority of Ireland, the initiative provides a EUR 5,000 scrappage incentive that can be combined with the existing EUR 3,500 EV grant, offering total support of up to EUR 8,500.

Who is eligible for the ICE2EV Scheme incentive?
Eligibility is focused on individuals who own qualifying gasoline or diesel vehicles registered in 2013 or earlier and intend to replace them with a new battery-electric vehicle. Applicants must meet the scheme requirements established by the Sustainable Energy Authority of Ireland. The incentive provides EUR 5,000 for scrapping an eligible vehicle and purchasing a new BEV. Funding has also been divided between rural and urban applicants, with a larger share reserved for rural participants.

How much financial support is available under the scheme?
Eligible participants can access substantial financial assistance when transitioning to a new battery-electric vehicle. The ICE2EV Scheme offers a EUR 5,000 scrappage incentive for retiring a qualifying older gasoline or diesel vehicle. This support is available in addition to the existing EUR 3,500 electric vehicle grant administered by SEAI. Together, the two incentives provide total potential support of up to EUR 8,500, helping reduce the upfront cost of purchasing a new electric vehicle.