Category C (Cat C)[1] diesel vehicle owners will soon receive greater impetus to go green, as the National Environment Agency (NEA) and the Land Transport Authority (LTA) expand the Early Turnover Scheme (ETS) to include owners of Cat C diesel vehicles with Euro II/III emissions standards. The enhanced scheme, which will run from 1 August 2015 to 31 July 2017, encourages vehicle owners to replace their old and more pollutive diesel vehicles with cleaner models, in line with the Government’s efforts to further improve Singapore’s ambient air quality by regulating vehicular emissions.
The ETS, which was introduced in April 2013 for Pre-Euro/Euro I Cat C diesel vehicles, helps to reduce vehicular emissions of PM2.5 and allows Singapore to meet its air quality targets by 2020 (refer to Annex B for more information). The expansion of the scheme will impact some 59,000[2] Euro II/III Cat C diesel vehicles on the roads today, or approximately 40 per cent of the total Cat C diesel vehicle population (refer to Annex C for more information). Compared to Euro V vehicles, Euro II/III diesel vehicles emit more harmful pollutants such as nitrogen oxides, particulate matter and hydrocarbons, and also contribute to the formation of ground-level ozone.
Incentives for Euro II/III vehicles under the ETS
With effect from 1 August 2015, Cat C Euro II and III diesel vehicles with a Maximum Laden Weight (MLW) of less than or equal to 3,500kg (“Light Vehicles”) will be given a bonus Certificate of Entitlement (COE) period of 10 per cent of the remainder of the vehicle’s 20-year lifespan, while those with MLW of more than 3,500kg (“Heavy Vehicles”) will receive a bonus COE period of 90 per cent of the remainder of their 20-year lifespan.
There will also be an additional bonus COE period of 3 per cent and 10 per cent of the remainder of the vehicle’s 20-year lifespan for Light Vehicles and Heavy Vehicles respectively, if eligible vehicle owners replace their existing vehicles with the cleaner Euro VI vehicles.
The bonus COE period will be applied as a discount to the Prevailing Quota Premium (PQP) payable for the COE. Under the ETS, eligible vehicle owners can also transfer the remaining COE validity period from their de-registered vehicle to the replacement vehicle, which will further reduce the PQP payable.
In summary, the bonus COE incentive for replacement of Euro II/III vehicles from 1 August 2015 to 31 July 2017 will be as follows:
| Maximum Laden Weight of Existing Vehicle | Proportion of Remaining 20-year Lifespan | |
| Enhanced Scheme for Euro II/III Cat C diesel Vehicles (for existing vehicles deregistered between 1 August 2015 and 31 July 2017) | Further incentives for replacement with Euro VI vehicles (for existing vehicles deregistered between 1 August 2015 and 31 July 2017) | |
| Less than or equal to 3,500kg | 10% | +3% |
| More than 3,500kg | 90% | +10% |
*Similar to the current scheme, the discounted PQP payable for the replacement vehicle is subject to a minimum of 10% of the PQP.
The ETS will be made available until 31 July 2017.
Higher Incentives for Pre-Euro/Euro I vehicles under the ETS
Owners of Pre-Euro/Euro I Cat C diesel vehicles will also benefit from the additional bonus COE period if they replace their existing vehicles with Euro VI-compliant models. As announced in 2014, the ETS has been extended until 30 April 2016 for vehicle owners of Pre-Euro/Euro I vehicles.
The additional bonus COE incentive for the replacement vehicle from 1 August 2015 to 30 April 2016 is as follows:
| Maximum Laden Weight of Existing Vehicle | Proportion of Remaining 20-year Lifespan | |
| Current Scheme for Pre-Euro/Euro I Cat C diesel Vehicles (for existing vehicles deregistered between 12 March 2014 and 30 April 2016) | Further incentives for replacement with Euro VI vehicles (for existing vehicles deregistered between 1 August 2015 and 30 April 2016) | |
| Less than or equal to 3,500kg | 20% | +3% |
| More than 3,500kg | 100% | +10% |
*Similar to the current scheme, the discounted PQP payable for the replacement vehicle is subject to a minimum of 10% of the PQP.
Please refer to Annexes D and E for a summary and some sample calculations of the benefits under the enhanced ETS.
“Calculator – Early Turnover Scheme” e-Service
Existing Pre-Euro/Euro I Cat C diesel vehicle owners can make use of the e-Service “Calculator – Early Turnover Scheme” available at the ONE.MOTORING portal to find out details of the current benefits[3]. All eligible vehicle owners will receive letters from 1 August 2015 with details of the incentives that their vehicles can enjoy under the scheme.
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.
[1] Please refer to Annex A for Cat C eligibility criteria
[2] As at 31 January 2015
[3] LTA is currently enhancing the calculator to reflect the revised incentives from 1 August 2015.
