Green cards will soon no longer be required for UK registered motor vehicles, including those from Northern Ireland, travelling to the Republic of Ireland or any other EU country.
The news was confirmed by the European Commission, following engagement from the Motor Insurers' Bureau of Ireland (MIBI).
A Green card is an internationally recognised insurance document which demonstrates to law enforcement agencies that valid motor insurance is in place.
In the aftermath of Brexit, from 1 January 2021 all UK registered vehicles, including those from Northern Ireland, are legally required to carry a Green Card if they visit another EU country, including the Republic of Ireland.
EU registered motor vehicles, including those from the Republic of Ireland, travelling within the EU are covered by the terms of the Motor Insurance Directive (MID).
This allows motor vehicles to travel freely between other EU countries without requiring supplementary insurance documentation.
These same provisions had previously applied to the UK, including Northern Ireland, but that ended once Brexit came into effect.
In advance of Brexit, the Motor Insurers' Bureau of Ireland (MIBI) had secured agreement from the UK Department of Transport that valid Irish insurance discs would be accepted as proof of insurance for Irish registered vehicles.
This meant that a Green Card was not required for Irish registered vehicles going to Northern Ireland or Great Britain.
The European Commission has now announced that it has agreed to fix a date to admit the UK into the Green Card free circulation zone.
The Motor Insurers' Bureau of Ireland said an exact date for when the new measures will take effect is expected to be confirmed in the coming days.
"We strongly welcome confirmation from the European Commission that the UK will be admitted into the Green Card free circulation zone," said David Fitzgerald, Chief Executive of the MIBI.
"Since the ramifications of Brexit on the issue of Green Cards became clear, the MIBI has been maintaining an ongoing dialogue with the European Commission to highlight the potential problems this could have caused, particularly across the island of Ireland," he said.