Singapore to implement enhanced version of diesel truck replacement scheme by August 1

Singapore’s National Environment Agency (NEA) will implement an enhanced version of it Early Turnover Scheme (ETS) for commercial vehicles beginning 1 August 2017 until 31 July 2019 and will provide incentives for the owners of Category C diesel vehicles with Euro 2 or Euro 3 emission standards to replace their vehicles with Euro 6 (or equivalent) vehicles.

The move, which aims to encourage vehicle owners to replace their older diesel vehicles with newer models, is in line with the government’s efforts to improve Singapore’s ambient air quality by reducing vehicular emissions.

As Euro 6 emission standards for diesel vehicles will be mandated from 1 January 2018 in Singapore, replacement vehicles must comply with Euro 6 emission standards to be eligible for these incentives.

The ETS for Pre-Euro/ Euro 1 Category C diesel vehicles will expire on 31 July 2017; the scheme will no longer be available for owners of Pre-Euro/ Euro 1 Category C diesel vehicles after this date.

Effective 1 August 2017, eligible Category C Light Goods Vehicles, i.e. those with Maximum Laden Weight (MLW) of less than or equal to 3,500kg, will be given a higher bonus Certificate of Entitlement (COE) period of 35% of the vehicle’s remaining 20-year lifespan, up from 13% currently. Eligible Heavy Goods Vehicles, i.e. those with MLW of more than 3,500kg, will continue to receive a bonus COE period of 100% of the remainder of their 20-year lifespan.

Category C diesel vehicles are major local sources of particulate matter (PM) and nitrogen oxides (NOx) pollution in Singapore. Euro 2/3 Category C diesel vehicles account for about 30% of the Category C diesel vehicle population, but almost half of the PM and NOx emissions. Replacing a Euro 2/3 Category C diesel vehicle with a Euro 6 diesel model reduces tailpipe emissions of PM and NOx by more than 90% and more than 60%, respectively. Any turnover to a non-diesel vehicle will reduce PM and NOx emissions to an even greater degree, the agency said.

The ETS was first introduced in 2013 for Pre-Euro/Euro 1 Category C diesel vehicles and was extended in 2015 to Euro 2/3 Category C diesel vehicles, with an additional incentive for turnover to Euro 6 (or equivalent) models.

About 27,000 Pre-Euro/Euro 1/2/3 vehicles have since been replaced early under the scheme.