It comes after the number of used cars hit a milestone last year
The Government is said to be considering a ban on used car imports from the UK.
The Department of Finance has said it is "examining options" in relation to the ban on old diesel imports.
It has also "recognised that the large-scale importation of used diesel cars from the UK over the past number of years was undesirable from a public health perspective and an Exchequer perspective".
It comes after the number of used cars registered here hit a milestone in 2018.
The number of used car registrations reached 100,755 for the first time in history - an increase of 7.81% on 2017.
While the number of new car registrations for the year 2018 fell by 4.4%.
The diesel and petrol market have also moved closer, with diesel accounting for 54% and petrol at 44%.
Nissan, who had called for such a ban, has welcomed the announcement.
CEO James McCarthy said: "The Government cannot solve the carbon emissions problem when it is allowing 100,755 polluting cars to be put onto Irish roads each year.
"That's 100 polluting cars for every zero emissions EV sold.
"The solution to rising carbon emissions is staring the Government in the face.The facts are clear. What we need now is decisive action".
In a statement made earlier this week, the car maker urged the Government to 'take stock' of the reality, the environmental and economic impact and the future cost of cleaning up the national car fleet.
It called on Government to ban used car imports from the UK, where registration pre-dates 2014 - rather than imposing a new carbon tax on householders.
It has claimed the move would prevent the displacement of over 66,000 new car sales in 2019, generating €400m in new tax revenue.
The tax take on each new car sale is €8,500 - compared to the €2,500 generated by each used car import.