A new €10m pilot electric vehicle (EV) scrappage scheme is being introduced by Minister for Transport Darragh O'Brien, the Irish Farmers Journal understands.

The scheme aims to incentivise owners of older, more polluting diesel and petrol internal combustion engine (ICE) vehicles to permanently scrap them and to use the scrappage value to purchase a battery EV instead.

The Irish Farmers Journal understands that jeeps are included in the scheme.

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Under the scheme, eligible applicants must dispose of an ICE vehicle more than 13 years old to receive a scrappage incentive of €5,000 which must be put towards the purchase of an EV.

This €5,000 scrappage payment would be in addition to the existing €3,500 EV purchase grant available, so eligible applicants could receive total support of €8,500 per vehicle.

It is understood that 65% of the funding, or €6.5m, will be ringfenced for people living outside the major cities of Dublin, Cork, Galway, Limerick and Waterford.

The remaining 35% or €3.5m will be available for applicants living in those cities.

The objective of this is to target more funding to those living in rural areas with less public transport who are more dependent on cars for transport.