Diesel vehicle green scheme extended to 2017

Lim Yan Liang The Straits Times AsiaOne 13 Mar 15;

A scheme to encourage owners of higher-emission diesel vehicles to scrap their vehicles will be extended to 2017, starting this August.

The move will make vehicles with Euro II and Euro III ratings eligible for the Early Turnover Scheme (ETS), which will give their owners a discount on the certificate of entitlement (COE) for a more environmentally friendly vehicle.

Currently, the scheme encourages the early replacement of older and more pollutive Pre-Euro and Euro I vehicles.

The European emission standards, which have been progressively implemented in Singapore, set the acceptable exhaust emission limits for new vehicles sold in European Union member states.

The extension of the scheme will benefit businesses, including small and medium-sized enterprises, Senior Minister of State for Transport Josephine Teo said in Parliament yesterday when she announced the change.

It will run from Aug 1 this year to July 31, 2017 and is expected to affect about 59,000 Euro II and Euro III diesel vehicles under the COE Category C, which is for goods vehicles and buses.

Under the scheme, the replacement has to be a Euro IV or Euro V vehicle, for which owners will pay a pro-rated COE premium instead of bidding for a COE.

On average, they get a discount of more than $20,000 on the COE, as they can transfer the remaining COE period of their existing vehicle to the new vehicle.

They also receive a bonus COE period proportionate to the existing vehicle's remaining lifespan. It varies with different vehicles.

This bonus COE period will be raised for those who opt for an even greener Euro VI vehicle.

"With more vehicles eligible for the ETS, there would likely be more Category C vehicles which will be replaced directly, without needing to bid for a new COE," Mrs Teo said.
"Both the demand for and the supply of Category C COEs are thus likely to decrease correspondingly," she added.