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Singapore introducing stiff new feebate scheme for low carbon cars

Singapore will implement a new Carbon Emissions-Based Vehicle Scheme (CEV) on 1 January 2012, providing rebates to qualified new cars, taxis, and imported used cars with low carbon emissions, and imposing an equivalent surcharge on higher emitting vehicles. This new scheme will replace the existing Green Vehicle Rebate (GVR) scheme that will expire on 31 December 2012.

Under CEV, all new cars, taxis, and imported used cars registered from 1 January 2013 with low carbon emissions of less than or equal to 160g CO2/km will qualify for rebates of between S$5,000 and S$20,000 (US$4,097 to US$16,389), which will be offset against the Additional Registration Fee (ARF) payable.

Cars with carbon emissions equal to or more than 211g CO2/km will incur a corresponding registration surcharge of between $5,000 and $20,000. The surcharges will only take effect six months later, from 1 July 2013, to give consumers and the motor industry more time to adjust.

To encourage taxi companies to adopt lower emission models for their fleet, the CEV rebate and registration surcharge for taxis is set at 50% higher compared to cars, i.e. between $7,500 and $30,000 (US$6,146 to US$24,584).

CEV bandings (Singapore dollars)
Band gCO2/km Rebate Surcharge
Cars Taxis Cars Taxis
A1 0 to 100 $20,000 $30,000    
A2 101 to 120 $15,000 $22,500    
A3 121 to 140 $10,000 $15,000    
A4 141 to 160 $5,000 $7,500    
B 161 to 210 0 0 0 0
C1 211 to 230     $5,000 $7,500
C2 231 to 250     $10,000 $15,000
C3 251 to 270     $15,000 $22,500
C4 271 and above     $20,000 $30,000

As non Euro V-compliant diesel models emit significantly more fine particulate matter, they will not enjoy the ARF rebates under the CEV even if they fall within the rebate emission bands. However if these models fall within the surcharge bands, the appropriate CEV surcharge will still apply.

The CEV will be applicable till 31 December 2014. The scheme will be reviewed, taking into consideration its impact on motorists’ purchasing decision, technological advances and the progress in Singapore’s overall mitigation efforts on climate change.

To help car buyers make informed decisions, the CO2/km performance data for each car model is available on mandatory Fuel Economy Label (FEL) information labels affixed on cars that are on sale in showrooms. The label, which carries Singapore’s Land Transport Authority’s (LTA) logo, is required to be affixed on cars and light goods vehicles (LGVs) that have been approved from 1 July 2012 and are displayed for sale.

The new label highlights the model’s carbon emissions per kilometer (CO2/km), fuel consumption and relative carbon emission performance. The label also shows the car banding under the CEV and corresponding rebate or surcharge to encourage consumers to shift to more fuel efficient and lower carbon emission models.

The outgoing Green Vehicle Rebate (GVR) scheme was introduced in 2001 to encourage the take up of green vehicles. Electric, hybrid and compressed natural gas vehicles are given a rebate of up to 40% of the vehicle’s Open Market Value (OMV) which is offset against the vehicle’s Additional Registration Fee (ARF).

Comments

HarveyD

This is a very smart malus-bonus program and should give excellent results in the next 3 years or so. It could easily be adjusted to be budget neutral. Singapore, with limited space, is the idea place for EVs.

This is a real polluters pay program that others should copy.

mahonj

Watch the Euro V diesels flock in.
Expect to see a lot of BMW 520D's.
I can't see it improving their air quality.

HarveyD

Various diesel's pollutants could be factored in the malus-bonus program?

SJC

I can not see people buying Chevy Tahoe SUVs being charged $4000 more to pay for a $7500 offset on an EV in the U.S.

Politics in American is different than the ways in Singapore and China. If they want to do something, they do it. They do not worry about being reelected next term.

HarveyD

SJC.....you have pointed out some of the main differences between well managed 'meritocracies' and corrupted 'democracies'.

Authorities and people in Singapore are proud to do things the right way (not the cheapest way) with a much higher degree of honesty and correctness. They have one of the best managed cleanest airport, hospital and subway in Asia and in the world. It is a very well managed successful compact country/city.

SJC

It is part of the debate in the U.S. today. Are we in this together or is is a dog eat dog pit. For most, we are in it together if there is something in it for them.

mahonj

@Harvey,
Yes, it would make sense to add in NOx and particulates.
But it is more complex because you have to scale the various other pollutants to CO2 equivalent and then add them in.

In general, this would cause a political row, but perhaps in Singapore, they could just set the rates and get on with it.

Do you know of any country that has constructed a CO2 equivalence table and tax rate set ?

Bob Wallace

Singapore has long had a "age-inverse" vehicle registration fee structure. Rather than the cost of annual registration dropping as ones car aged as it does most where, the cost went up in Singapore.

That forced pollution clunkers off the streets because it became cheaper to buy a new car than to repair and register an old one.

HarveyD

BW...another demonstration of what a well managed 'meritocracy' can do.

mahonj...don't know where it is done but it would not be so difficult to do within +/- 10% or so?

Bob Wallace

No government is more efficient than a dictatorship.

The problem is deciding which dictators will "do the right thing".

Remember when the General running Myanmar was told by his official astrologer that Myanmar would never become a first world country as long as people drove on the left hand side of the road? And the next day, without and lead-up and prep, he ordered everyone to drive on the right side of the road.

Efficient social change, but a lot of people died....

Tom Watson

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Rian Sidebottom

Cars are very common in use these days. It causes the increase in number of cars in big cities. It results in environmental pollution. So need to make a car of low carbon emission. Now Singapore introducing stiff new feebate scheme for low carbon cars. This is really a nice thing to adopt in automobile manufacturing.
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