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Ireland’s transport sector calls for government support to meet decarbonisation targets

FTA Ireland, one of the country's largest membership associations, has urged the government to provide financial support for the transport and logistics sector, warning that without it, Ireland may fall short of its net zero emissions targets for 2050. The call comes in the association's pre-Budget submission ahead of the October 1st Budget announcement.

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Aidan Flynn, Chief Executive of FTA Ireland, stressed the vital role the sector plays in Ireland’s economy, employing over 113,000 people and facilitating the country’s trade and daily supply of goods. However, Mr Flynn expressed concern about rising operating costs which are putting increasing pressure on the industry’s ability to maintain profitability.

“Wage inflation and the cost of fuel continue to put pressure on the bottom line for our sector,” said Flynn. “A shortage of skilled staff is also exacerbating financial challenges, and while our members want to avoid passing these costs on to consumers, the ability to do so is becoming limited.”

The primary driver of this financial strain, according to Flynn, is the industry’s push towards decarbonisation, which requires significant investment in new vehicles, trained personnel, and infrastructure. While the sector is committed to achieving net zero, Flynn argued that government support is essential to make this transition feasible.

“We are fully behind the government’s Net Zero targets, but achieving them will require significant resources and funding,” Flynn said.

He called for subsidies and grants in the upcoming Budget to help transport and logistics businesses adapt to new environmental standards, including the development of new refuelling networks and the training of technicians to service electric vehicles (EVs).

The launch of an EV Technician course by colleges has been seen as a positive step toward addressing the skills shortage within the sector. However, Flynn noted that further investment is necessary to ensure that businesses can keep up with the rapid pace of technological change.

Flynn also highlighted the importance of events such as the Sustainable Transport Seminar, which provides operators with a platform to discuss the challenges facing the sector and identify solutions for a net zero future. He encouraged businesses of all sizes to participate in the seminar to share knowledge and collaborate on achieving common sustainability goals.

As Ireland strives to meet its decarbonisation targets, the transport sector remains a key player in the country’s broader climate strategy. FTA Ireland’s appeal for government support underscores the financial and logistical hurdles that must be overcome for the industry to thrive in a greener future.

The upcoming Budget announcement on October 1st is expected to reveal the government’s plans for supporting the sector as it transitions to more sustainable operations.

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