Joint Media Release by the Land Transport Authority (LTA) & NEA - Early Turnover Scheme for Category C Euro 2/3 Diesel Vehicles to be Enhanced from 1 August 2017

News Releases
8 Mar 2017

Replacement Vehicles Will Be Required
to Meet Euro 6 Emission Standards

 

    As announced at the Ministry of the Environment and Water Resources (MEWR)’s Committee of Supply Debate 2017, NEA will enhance the Early Turnover Scheme (ETS) for commercial vehicles. The enhanced scheme will run from 1 August 2017 to 31 July 2019 and will provide incentives for the owners of Category C diesel vehicles with Euro 2 or Euro 3 emission standards to turnover to Euro 6 (or equivalent) vehicles. The move, which aims to encourage vehicle owners to replace their older and more pollutive diesel vehicles with newer and cleaner models, is in line with the Government’s efforts to improve Singapore’s ambient air quality by reducing vehicular emissions (see Annex A for Singapore’s Air Quality Targets).

2.  Category C diesel goods vehicles are major local sources of particulate matter (PM) and nitrogen oxides (NOx) pollution in Singapore.[1] Euro 2/3 Cat C diesel vehicles account for about 30 per cent of the Cat 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 per cent and more than 60 per cent respectively. Any turnover to a non-diesel vehicle will reduce PM and NOx emissions to an even greater degree.

3.  The ETS was first introduced in 2013 for Pre-Euro/Euro 1 Category C diesel vehicles, and 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[2].

Revised Incentives for Category C Euro 2/3 Diesel Vehicles under the Enhanced ETS

4.  With effect from 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 per cent of the vehicle’s remaining 20-year lifespan, up from 13 per cent 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 per cent of the remainder of their 20-year lifespan. As Euro 6 emission standards for diesel vehicles will be mandated from 1 January 2018, replacement vehicles must comply with Euro 6 emission standards in order to be eligible for incentives (refer to Annex B for the eligibility criteria). As announced previously, the ETS for Pre-Euro/Euro 1 Category C diesel vehicles will expire on 31 Jul 2017 and the scheme will no longer be applicable for owners of Pre-Euro/Euro 1 Category C diesel vehicles after that.

5.  The bonus COE period will be applied as a discount to the Prevailing Quota Premium (PQP) payable for the replacement vehicle’s COE. Eligible vehicle owners can also transfer the remaining COE validity period from their de-registered vehicle to the replacement vehicle. Similar to the current scheme, the discounted PQP payable for the replacement vehicle is subject to a minimum of 10 per cent of the PQP. (Refer to Annexes C and D for a summary and sample calculations of the benefits under the enhanced ETS.)

6.  In summary, the bonus COE incentives for the replacement of Euro 2/3 vehicles are as follows:

Maximum Laden Weight of Existing Vehicles

Proportion of Remainder of Vehicle’s 20-year Lifespan[3]

Euro Standard (or Equivalent) of Replacement Vehicle Registered

Current Scheme for Euro 2/3 Category C Diesel Vehicles
(for existing vehicles deregistered between 1 August 2015 and 31 July 2017)

Revised Scheme for Euro 2/3 Category C Diesel Vehicles
(for existing vehicles deregistered between 1 August 2017 and 31 July 2019)

Less than or equal to 3,500kg

Euro 5

10%

Not Applicable

More than 3,500kg

Euro 5

90%

Not Applicable

Less than or equal to 3,500kg

Euro 6

13%

35%

More than 3,500kg

Euro 6

100%

100%

“Calculator – Early Turnover Scheme” e-Service

7.  Euro 2/3 Category C diesel vehicle owners can make use of the e-Service “Calculator – Early Turnover Scheme” available at the ONE.MOTORING portal (www.onemotoring.com.sg) to find out more about the benefits of the ETS.[4]

8.  Vehicle owners and motor dealers may contact LTA at 1800-CALL LTA (2255-582) or NEA at 1800-CALL NEA (2255-632) for enquiries on the ETS.



Annex A: Singapore's Air Quality Targets
Annex B: Eligibility Criteria and Details for the Enhanced Early Turnover Scheme
Annex C: Summary on PQP Payable and Calculation of COE
Annex D: Sample Calculations of Benefits under Enhanced ETS

 


[1] Long-term exposure to PM is associated with decreased lung function, development of chronic bronchitis, stroke and premature death. In addition to increasing the risk of respiratory infection and impairment of lung functions in asthmatics, NOx is also a precursor to ozone; excessive ozone can also impair respiratory functions. Singapore currently does not meet our 2020 air quality targets for PM10, PM2.5 and ozone.

[2] As at 31 December 2016.

[3] Category C vehicles have a statutory lifespan of 20 years. The bonus COE incentive will be based on the remaining statutory lifespan of the vehicle at the point of deregistration.

[4] LTA is currently enhancing the calculator to reflect the revised incentives from 1 August 2017.