Commercial Vehicle Emissions Scheme dangles carrot and stick

A NEW Commercial Vehicle Emissions Scheme (CVES) will offer buyers of clean light goods vehicles an incentive while imposing a surcharge on such vehicles that are pollutive.

Under the CVES, the cleanest light goods vehicles will receive a S$30,000 incentive, while the most polluting ones will incur a S$10,000 surcharge, Minister for Environment and Water Resources Masagos Zulkifli said during his ministry's Committee of Supply debate in Parliament on Wednesday.

This applies to all new and used imported light goods vehicles, goods-cum-passenger vehicles and small buses with a maximum laden weight not exceeding 3,500 kilogrammes, according to a joint statement from the Ministry of Environment and Water Resources, National Environment Agency and Land Transport Authority.

The CVES scheme is built on the Vehicular Emissions Scheme for private cars, which was implemented in 2018 and extended until 2020.

"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," Mr Masagos told the House.

To complement the CVES, the Early Turnover Scheme will also be enhanced from April 1, 2021 until March 31, 2023, including expanding the scheme to cover Euro 4 diesel commercial vehicles, the minister said.

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According to the CVES, light goods vehicles are classified into Bands A, B or C by their worst-performing pollutant among the following: carbon dioxide, carbon monoxide, hydrocarbons, nitrogen oxides and particulate matter).

Band A vehicles will get a S$30,000 incentive, and Band B vehicles, S$10,000. Band C vehicles will get a S$10,000 surcharge upon vehicle registration.