Parliament: Carrot-stick emissions scheme extended to commercial vehicles

SINGAPORE – Business owners who buy an electric commercial vehicle from April next year will receive a cash grant of $30,000, a move that is likely to nudge them away from diesel and towards electric vehicles.

The Commercial Vehicle Emissions Scheme (CVES), which starts April next year for new and imported used light goods vehicles and minibuses, is similar to one which has been extended to passenger car buyers since 2001.

But unlike the green vehicle schemes for cars, the CVES offers hard cash instead of tax offsets.

Electric commercial vehicles buyers will get $30,000 in three equal instalments per year starting at the point of the EV’s registration.

The type of EV is not restricted to battery-powered models. Fuel-cell models (which make electricity chemically using either stored hydrogen or methane) will qualify for the scheme’s Band A too – as long as they produce no more than 150g/km of carbon dioxide in the process.

Those who buy petrol-electric hybrids are likely to receive $10,000 in cash in Band B.

But those who buy the cleanest combustion engine models (likely petrol-powered) also stand to qualify – as long as the model emits not more than 280g/km of CO2, not more than 0.039g/km of hydrocarbon, not more than 0.27g/km of carbon monoxide, not more than 0.008g/km of nitrogen oxides, and not more than 0.9mg/km of particulate matter.

And like the Vehicular Emissions Scheme (VES) governing passenger cars, the CVES will levy a penalty for more pollutive vehicles.

Models that emit more than the above values fall into Band C, and will be slapped with $10,000 surcharge. Unlike the current VES, the CVES does not have a neutral band, where neither carrot or stick applies.

Environment and Water Resources Minister Masagos Zulkifli on Wednesday (March 4) told the House: “Commercial vehicles, especially light goods vehicles, are key emission sources and pollute our air due to their high mileage and reliance on diesel.”

To coax more fleet owners to trade in their vehicles for cleaner models, the seven-year-old Early Turnover Scheme (ETS) has been enhanced.

First, it will be extended to cover Euro 4-compliant models from April 2021. This will almost treble the number of eligible vehicles to more than 63,000 units – or more than 40 per cent of the commercial vehicle population here.

Second, there will be more Certificate of Entitlement (COE) bonuses, ranging from 20 to 100 per cent. This bonus is factored into a formula which takes into account elements such as the remaining years of the existing vehicle’s COE.

For instance, operators will get a 45 per cent COE bonus for replacing their Euro 2 or 3 light goods vehicles (LGVs) with LGVs in Band A and B of the CVES, or with a heavy goods vehicle (HGV) compliant with the Euro-6 standard.

Those replacing their Euro 2 or 3 HGVs with Euro 6 HGVs or LGVs in Band A or B will get an 80 per cent COE bonus.

And they will get a 100 per cent COE bonus if they are replacing their vehicles with electric HGVs.

Owners replacing their Euro 4 HGVs with Euro 6 HGVs or LGVs in Band A or B will get a 40 per cent COE bonus. If they go electric, they get an 80 per cent COE bonus.

Vehicle owners will get both ETS and CVES benefits if they replace their LGV with Euro 6 models which fall within the CVES A and B bands.

Mr Masagos said the VES for passenger cars will be refined further, “taking into account its impact on motorists’ purchasing decisions and advancements in technology”.

Source: Read Full Article