Scheme extended to continue encouraging the purchase of cleaner car models

Singapore, 30 October 2019 – To continue encouraging the purchase of cleaner car models, the existing Vehicular Emissions Scheme (VES) for newly registered cars and taxis as well as imported used cars, which is effective until 31 December 2019, will be extended by one year to 31 December 2020. There will be no change to the scheme during the extension.

2          The VES came into effect on 1 January 2018, and aims to encourage buyers to choose car models with lower emissions across five pollutants^[1]. This is to help reduce carbon emissions^[2], improve ambient air quality and thereby improve public health.

3          The scheme has been effective in encouraging the uptake of cleaner car models. Between July 2018 and June 2019, the number of new cars registered in Certificate of Entitlement (COE) Categories A and B that qualify for rebates under VES Bands A1 and A2 has collectively increased by about 60 per cent, while the number of new cars subject to surcharges under VES Bands C1 and C2 has collectively fallen by about 14 per cent.

4          Motor dealers are encouraged to introduce cleaner car models to the market during the extension. The scheme will be reviewed regularly, taking into consideration its impact on motorists’ purchasing decisions and advances in vehicle technology.

5          Buyers and motor dealers may contact NEA at 1800-CALL NEA (2255-632) for enquiries on the VES. More information on the VES can be found online.

^[1] Carbon dioxide (CO2), hydrocarbons (HC), carbon monoxide (CO), nitrogen oxides (NOx), and particular matter (PM).  Due to a six-month exemption for PM, PM was included in the VES as a criteria pollutant only from 1 July 2018 onwards.

^[2] The grid emission factor used to account for the CO2 emissions produced by electricity generation from fossil fuels will remain unchanged at 0.4g CO2/Wh of electricity for the duration of the extension.