Decoupling Emissions from Economic Activity 2022

• In 2022, emissions from Land transport were 4% of total greenhouse gas emissions, 1% of gross value added, and 2% of employment (See Figure 5.2 and Table 5.1).

• Greenhouse gas emissions in the sector fell 38% between 2010 and 2022, while gross value added (GVA) went up 32% and employment rose by 17% (See Figure 5.1 and Table 5.1).

• In 2022, emissions from road transport fuel were 81% of total emissions from this sector and emissions from rail transport fuel were 5% of the total (See Figure 5.3 and Table 5.2).

• In 2022, electric vehicles made up 1.9% of public service vehicles. The percentage of hybrid public service vehicles increased from 0.2% in 2010 to 12.0% in 2020 (See Figure 5.4 and Table 5.3).

• In 2022, the Land transport sector paid €286 million in environment taxes and received €14 million in environmental subsidies (See Figure 5.5 and Table 5.5).

• In 2022, the Land transport sector paid €117 in environment taxes per tonne of carbon dioxide (See Figure 5.5 and Table 5.5).

Greenhouse Gas Emissions and Economic Activity in the Land Transport Sector

Figure 5.1 shows trends in greenhouse gas emissions, gross value added at constant (2022) prices, and employment numbers for the Land transport sector from 2010 to 2022. Greenhouse gas emissions in the sector fell 38% between 2010 and 2022, while gross value added (GVA) went up 32% and employment rose by 17%.

In each year from 2016 to 2022, emissions were lower than in 2010 while GVA and employment were higher. Emissions in this sector in 2020 and 2021 were likely to have been affected by the COVID-19 pandemic.

Figure 5.2 shows the Land transport sector share of total emissions, GVA, and employment. In 2022, emissions from Land transport were 4% of total greenhouse gas emissions, compared with 6% in 2010. The share of GVA remained fairly steady between 2010 and 2022 at 1% of total GVA, while the employment share was around 2% most years in the same time period.

Table 5.1 shows data on levels of greenhouse gas emissions, GVA, and employment numbers for the Land transport sector from 2010 to 2022, as well as the share of total emissions, GVA and employment. In 2022, emissions were 2.4 million tonnes of carbon dioxide equivalent, GVA was €4.2 billion, and employment in the sector was 54,741 persons.

Sources of Greenhouse Gas Emissions

Figure 5.3 shows that sources of greenhouse gas emissions in the Land transport sector did not change significantly between 2010 and 2022. The majority of greenhouse gas emissions from the land transport sector were due to road transport fuel combustion in vehicles in all years from 2010 to 2022 (see Table 5.2). In 2022, emissions from road transport fuel were 81% of total emissions from this sector and emissions from rail transport fuel were 5% of the total. 

Road Transport Vehicle and Fuel Types

Figure 5.4 and Table 5.3 show vehicle licensing data by fuel type for public service vehicles (buses, taxis, hackneys and limousines). In 2022, electric vehicles made up 1.9% of the total. The percentage of hybrid public service vehicles increased from 0.2% in 2010 to 12.0% in 2022.

Table 5.4 shows vehicle licensing data by fuel type for goods vehicles. The percentage of goods vehicles using autodiesel as fuel was at least 99% in all years from 2010 to 2022. Electric vehicles made up 0.5% of goods vehicles in 2022.

Environmental Subsidies and Taxes in the Land Transport Sector

Figure 5.5 shows a comparison of environmental taxes paid and environmental subsidies received by the Land transport sector from 2010-2022. Environment taxes paid by the Land transport sector consist mainly of energy taxes on fuel use, and were €286 million in 2022. Environmental subsidies in this sector are predominantly grant payments for electric public service vehicles, with some supports for heavy duty vehicles and rail transport also. In 2022, €14 million was received in environmental subsidies by the Land transport sector. 

Figure 5.5 also shows environment taxes paid per tonne of carbon dioxide emitted by the Land transport sector. This was €117 per tonne in 2022, the lowest rate since 2016, perhaps due to temporary tax reliefs that were in place in 2022 due to rises in energy prices.

Table 5.5 shows the Land transport sector share of environmental taxes and subsidies from 2010-2022. In each year, the share of environment taxes paid was higher than the share of emissions, while the share of environmental subsidies received was lower. In 2022, the sector share of environment taxes was 7%, the sector share of environmental subsidies was 1%, and the sector share of greenhouse gas emissions was 4%.

Table 5.5 also shows data on environment taxes paid per tonne of carbon dioxide equivalent emitted by the sector from 2010 to 2022. This showed a mainly increasing trend from 2010 to 2021 before falling in 2022 to €117 per tonne.