Measures to spur use of commercial vehicles with cleaner energy extended

The Commercial Vehicle Emissions Scheme (CVES), which encourages the adoption of cleaner-energy light commercial vehicles in Singapore, will be extended by two years till March 31, 2027, with the incentive for electric vehicles in Band A staying at $15,000.

- Esther Loi

But the incentive of $5,000 for Band B - comprising mainly petrol vehicles - will be removed. The surcharge for the most pollutive Band C, composed mostly of diesel-powered commercial vehicles, will be raised from $15,000 to $20,000, said the National Environment Agency (NEA) and Land Transport Authority (LTA) on Dec 30.

The scheme was previously extended till the end of March 2025.

The agencies said in a statement that the Early Turnover Scheme for heavy commercial vehicles - meant to encourage owners of older diesel vehicles and buses to switch to cleaner new vehicles - will also be extended until Dec 31, 2025, and will be discontinued after that.

Introduced in 2021, the CVES applies to all new and used imported light commercial vehicles - such as light goods vehicles and small buses not exceeding 3,500kg in maximum laden weight - and classifies these vehicles into bands based on their pollutant levels. Buyers of these vehicles are then given an incentive, or subjected to a surcharge, based on the band their vehicle belongs to.

The authorities said the latest changes are in line with the Government's vision to have all vehicles run on cleaner energy by 2040.