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New emissions scheme from April 2021 to incentivise use of cleaner commercial vehicles

New emissions scheme from April 2021 to incentivise use of cleaner commercial vehicles

File photo of cars, motorcycles and goods vehicles on Singapore roads. (Photo: Jeremy Long)

SINGAPORE: A new scheme aimed at promoting the adoption of cleaner and newer commercial vehicles will take effect from April next year. 

The Commercial Vehicle Emissions Scheme (CVES) will classify a variety of commercial vehicles into three categories resulting in a $10,000 surcharge for the most polluting vehicles to $30,000 incentive for the cleanest vehicles.

Light Goods Vehicles, Goods-cum-Passenger Vehicles and small buses with a maximum laden weight not more than 3500kg will be grouped into three bands by their worst-performing pollutant among the following: carbon dioxide, carbon monoxide, hydrocarbons, nitrogen oxides and particulate matter. 

This is to encourage buyers to choose models that have lower emissions across all criteria and are cleaner overall, said the National Environment Agency (NEA) and Land Transport Authority (LTA) in a joint press release.

During his Committee of Supply speech, Minister for the Environment and Water Resources Masagos Zulkifli said: “The transport of goods and services is a major economic activity in Singapore. Commercial vehicles, especially Light Goods Vehicles or LGVs, are key emission sources and pollute our air due to their high mileage and reliance on diesel."

The CVES shares similarities with the Vehicular Emission Scheme (VES) which gives car buyers and taxi operators who choose cleaner car models an upfront rebate of up to S$20,000 and S$30,000 respectively. There are plans to refine the VES further, added Mr Masagos.

The CVES will apply to new vehicles as well as vehicles that are no more than three years old at registration.  

For owners whose vehicles are in Band A (cleanest vehicles), the incentive will be handed out annually in equal payments of $10,000 over three years. Owners of Band B vehicles will receive an upfront $10,000 incentive upon vehicle registration, while owners of Band C vehicles will have to pay a $10,000 surcharge upon registration.

READ: Budget 2020: Additional incentives to encourage use of more environmentally friendly vehicles

In order to complement the CVES, the Early Turnover Scheme (ETS) will be expanded from April next year and cover Euro 4 diesel vehicles, said Mr Masagos. The existing ETS will be extended until end of March next year.

These initiatives are part of a slew of measures as Singapore moves towards a vision to have all vehicles run on cleaner energy by 2020. 

In Finance Minister Heng Swee Keat's Budget speech last month, it was also announced that the Government will introduce the EV Early Adoption Incentive (EEAI), where those who buy fully electric cars and taxis will receive a rebate of up to 45 per cent on the Addition Registration Fee.

“Public transport generates up to three times less carbon dioxide than private transport. Hence, our approach is to encourage public transport and green public transport as far as possible. The Land Transport Master Plan 2040 by the Ministry of Transport supports this. This is how Singapore moves to cut GHG (greenhouse gas) emissions – simply drive less," said Mr Masagos. 

"If driving less is, somehow, not an option, motorists can still practise sustainable consumption by choosing cleaner vehicles that emit less GHG and harmful pollutants."

Both the CVES and the enhanced ETS will run till Mar 31, 2023.

Source: CNA/mt(mn)


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