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Early Turnover Scheme for Category C Euro 2/3 Diesel Vehicles to be Enhanced from 1 August 2017

08 Mar 2017

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Replacement vehicles will be required to meet Euro 6 emission standards

Singapore, 8 March 2017 – As announced at the Ministry of the Environment and Water Resources (MEWR)’s Committee of Supply Debate 2017, NEA will enhance the Early Turnover Scheme (ETS) for commercial vehicles. The enhanced scheme will run from 1 August 2017 to 31 July 2019 and will provide incentives for the owners of Category C diesel vehicles with Euro 2 or Euro 3 emission standards to turnover to Euro 6 (or equivalent) vehicles. The move, which aims to encourage vehicle owners to replace their older and more pollutive diesel vehicles with newer and cleaner models, is in line with the Government’s efforts to improve Singapore’s ambient air quality by reducing vehicular emissions (see Annex A for Singapore’s Air Quality Targets). 

Category C diesel goods vehicles are major local sources of particulate matter (PM) and nitrogen oxides (NOx) pollution in Singapore[1]. Euro 2/3 Cat C diesel vehicles account for about 30 per cent of the Cat C diesel vehicle population but almost half of the PM and NOx emissions. Replacing a Euro 2/3 Category C diesel vehicle with a Euro 6 diesel model reduces tailpipe emissions of PM and NOx by more than 90 per cent and more than 60 per cent respectively. Any turnover to a non-diesel vehicle will reduce PM and NOx emissions to an even greater degree.

3          The ETS was first introduced in 2013 for Pre-Euro/Euro 1 Category C diesel vehicles, and extended in 2015 to Euro 2/3 Category C diesel vehicles, with an additional incentive for turnover to Euro 6 (or equivalent) models. About 27,000 Pre-Euro/Euro 1/2/3 vehicles have since been replaced early under the scheme[2].

Revised Incentives for Category C Euro 2/3 Diesel Vehicles under the Enhanced ETS

4          With effect from 1 August 2017, eligible Category C Light Goods Vehicles, i.e. those with  Maximum Laden Weight (MLW) of less than or equal to 3,500kg, will be given a higher bonus Certificate of Entitlement (COE) period of 35 per cent of the vehicle’s remaining 20-year lifespan, up from 13 per cent currently. Eligible Heavy Goods Vehicles, i.e. those with MLW of more than 3,500kg, will continue to receive a bonus COE period of 100 per cent of the remainder of their 20-year lifespan. As Euro 6 emission standards for diesel vehicles will be mandated from 1 January 2018, replacement vehicles must comply with Euro 6 emission standards in order to be eligible for incentives (refer to Annex B for the eligibility criteria). As announced previously, the ETS for Pre-Euro/Euro 1 Category C diesel vehicles will expire on 31 Jul 2017 and the scheme will no longer be applicable for owners of Pre-Euro/Euro 1 Category C diesel vehicles after that.    

5          The bonus COE period will be applied as a discount to the Prevailing Quota Premium (PQP) payable for the replacement vehicle’s COE. Eligible vehicle owners can also transfer the remaining COE validity period from their de-registered vehicle to the replacement vehicle. Similar to the current scheme, the discounted PQP payable for the replacement vehicle is subject to a minimum of 10 per centof the PQP. (Refer to Annexes C and D for a summary and sample calculations of the benefits under the enhanced ETS.)

6          In summary, the bonus COE incentives for the replacement of Euro 2/3 vehicles are as follows:

Maximum Laden Weight of Existing Vehicles

“Calculator – Early Turnover Scheme” e-Service 

7          Euro 2/3 Category C diesel vehicle owners can make use of the e-Service “Calculator – Early Turnover Scheme” available at the ONE.MOTORING portal (www.onemotoring.com.sg) to find out more about the benefits of the ETS[4].  

8          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] Long-term exposure to PM is associated with decreased lung function, development of chronic bronchitis, stroke and premature death. In addition to increasing the risk of respiratory infection and impairment of lung functions in asthmatics, NOx is also a precursor to ozone; excessive ozone can also impair respiratory functions. Singapore currently does not meet our 2020 air quality targets for PM10, PM2.5 and ozone.


[2] As at 31 December 2016.

[3] Category C vehicles have a statutory lifespan of 20 years. The bonus COE incentive will be based on the remaining statutory lifespan of the vehicle at the point of deregistration.

[4] LTA is currently enhancing the calculator to reflect the revised incentives from 1 August 2017.

~~ End ~~

For more information, please contact us at 1800-CALL NEA (1800-2255 632) or submit your enquiries electronically via the Online Feedback Form or myENV mobile application.


ANNEX A

Singapore’s Air Quality Targets

Pollutant Singapore Targets by 2020 Long Term Targets
Sulphur Dioxide
(SO2)
24-hour mean: 50µg/m3
(WHO Interim Target)

Annual mean: 15 µg/m3
(Sustainable Singapore Blueprint target)
24-hour mean: 20µg/m3
(WHO Final)
Particulate Matter
(PM2.5)
Annual mean: 12µg/m3
(Sustainable Singapore Blueprint target)[5]

24-hour mean: 37.5µg/m3
(WHO Interim Target)
Annual mean: 10µg/m3

24-hour mean: 25µg/m3
Particulate Matter
(PM10)
Annual mean: 20 µg/m3
24-hour mean: 50 µg/m3
(WHO Final)
Ozone
8-hour mean: 100µg/m3
(WHO Final)
Nitrogen Dioxide (NO2)
Annual mean: 40µg/m3
1-hour mean: 200µg/m3
(WHO Final)
Carbon Monoxide (CO)
8-hour mean: 10mg/m3
1-hour mean: 30mg/m3
(WHO Final)

 

[5] Sustainable Singapore Blueprint annual target for PM2.5 of 12µg/m3 will be retained and aligned with WHO Interim Target of 37.5 µg/m3 for 24-hour mean.

ANNEX B

Eligibility Criteria and Details for the Enhanced Early Turnover Scheme

1  To be eligible for the scheme, the following criteria must be met: 

(I) The existing vehicle must be:
  • A Category C vehicle and not COE-exempted;

  • Propelled by diesel, diesel-Compressed Natural Gas (CNG) or diesel-electric;

  • Under the permanent ownership of the registered owner;

  • Registration and deregistration dates are within the following period:
    Registration Date: On or after 1 January 2001 to 30 September 2006[6] 
    Deregistration Date: On or after 1 August 2017 to 31 July 2019

  • Properly disposed of (i.e. scrapped or exported and COE rebate, if any, successfully granted) before registration of the replacement vehicle; and

  • Have at least one day of COE life remaining or at least one day of its remaining statutory lifespan, at the point of deregistration.
(II) The replacement vehicle must be: 
  • A Category C vehicle and not COE-exempted.

  • Any vehicle type, e.g. an existing Light Goods Vehicle (LGV) can be replaced with a Heavy Goods Vehicle (HGV).  However, the registered owner must fulfil the registration conditions of the replacement vehicle, such as obtaining LTA’s prior approval for the registration of a private hire bus, etc;

  • Electric vehicle, or Euro 6-compliant if it is propelled by diesel, diesel-CNG, diesel-electric, CNG, petrol, petrol-CNG or petrol-electric;

    - Diesel, diesel-CNG or diesel-electric vehicles with Maximum Laden Weight of less than or equal to 3,500kg can also be JPN2009 with Euro 6 PN Limit-compliant;

    - Diesel, diesel-CNG or diesel-electric vehicles with Maximum Laden Weight of more than 3,500kg can also be PPNLT with Euro 6 PM Number-compliant; 

    - Petrol, petrol-CNG, petrol-electric or CNG vehicles can also be JPN2009 with Euro 6 PN Limit-compliant if using Gasoline Direct Injection technology or JPN2009-compliant if using Port Fuel Injection technology; 

  • Registered in the name of the last registered owner of the existing vehicle[7]; and

  • Registered within 1 month from the date of deregistration of the existing vehicle     

    See illustrations:

    For existing vehicle registered on or after 1 January 2001 to 30 September 2006 (Euro 2/3)
    • If deregistered on 1 August 2017, the replacement vehicle must be registered by 31 August 2017.

    • As scheme ends on 31 July 2019, the last date to deregister will therefore be 31 July 2019 and its replacement vehicle must be registered by 30 August 2019.

2  Vehicles contribute to about half of domestic PM emissions in Singapore, and diesel vehicles contribute to more than 90 per cent of total PM emissions from all petrol and diesel vehicles. The early replacement of older and more polluting diesel models with newer models, which comply with tighter emission standards, will reduce ambient PM levels.  

3  The details of the 2 components of the current and enhanced scheme are as follows:

a. COE transfer. This will allow a transfer of the remaining COE validity period from an eligible vehicle to a new Euro 5/6-compliant vehicle. This would be more attractive to the vehicle owners than the usual approach of deregistering an old vehicle, getting a COE rebate based on their original COE price, and bidding for a new COE for the new vehicle.

b. COE bonus. This is based on the remainder of the vehicles’ 20-year lifespan and structured as follows[8]  in Table B-1:

Table B-1: COE Bonus for Euro 2/3 Cat C diesel Vehicles that turnover to Euro 5/6 (or equivalent) vehicles in current and enhanced scheme

Deregistration Date of Existing Vehicle

[6] Euro 2/3 vehicles registered in October 2006 may be eligible for the ETS ifsupporting documents certifying the emissions standards of the vehicles are provided.

[7] Vehicle owners who wish to transfer their replacement vehicle to another owner can apply to LTA to effect the ownership transfer after registration of the replacement vehicle.  Visit www.onemotoring.com.sg for vehicle ownership transfer procedures and forms.

[8] The bonus COE period would carry zero financial value. The cash value of the full 10-year COE for the replacement vehicle would be the transferred value of the remaining COE life of the existing vehicle (based on the old COE price) and the amount paid for the PQP top-up.

ANNEX C

Summary on PQP Payable and Calculation of COE

(A) How PQP Payable for the Replacement Vehicle is Derived

For eligible vehicles that are deregistered between 1 August 2017 and 31 July 2019, the discounted PQP payable at the point of registration of the replacement vehicle will be computed as follows and rounded up to the nearest dollar:

Discounted PQP

 

(B) How the Value of the 10-year COE for the Replacement Vehicle is Calculated

Once registered, the value of the 10-year COE for the replacement vehicle will be calculated as follows:


Value of 10 year COE

ANNEX D

Sample Calculations of Benefits under Enhanced ETS

EXAMPLE 1

Category C existing vehicle with MLW = 3,000kg
First Registration Date (FRD) between 1 January 2001 and 30 September 2006
Deregistered between 1 August 2017 and 31 July 2019
Has both unused COE and remainder of the 20-year lifespan at deregistration

(a) Replacement Vehicle
Emissions Standard: Euro 5
Not eligible under ETS as Scheme is no longer applicable to Euro V replacement vehicles

(b) Replacement Vehicle
Emissions Standard: Euro 6

Assumptions

Existing Vehicle Replacement Vehicle
QP paid = $20,000
FRD: 1 September 2001
10-year COE Expiry Date: 31 August 2021
Reach 20 years old on: 31 August 2021
Deregistration Date: 31 August 2017
PQP for Category C = $50,000
Registration Date: 31 August 2017

Existing vehicle

EXAMPLE 2

Category C existing vehicle with MLW = 3,000kg
FRD between 1 January 2001 and 30 September 2006
Deregistered between 1 August 2017 and 31 July 2019
Has only remaining statutory lifespan at deregistration

(a) Replacement Vehicle
Emissions Standard: Euro 5
Not eligible under ETS as Scheme is no longer applicable to Euro 5 replacement vehicles

(b) Replacement Vehicle
Emissions Standard: Euro 6

Assumptions
Existing Vehicle Replacement Vehicle
QP paid = $20,000
FRD: 1 September 2001
10-year COE Expiry Date: 31 August 2017
Reach 20 years old on: 31 August 2021
Deregistration Date: 31 August 2017
PQP for Category C = $50,000
Registration Date: 31 August 2017

 

Existing vehicle - eg 2

EXAMPLE 3

Category C existing vehicle with MLW = 5,000kg
FRD between 1 January 2001 and 30 September 2006
Deregistered between 1 August 2017 and 31 July 2019
Has both unused COE and remaining statutory lifespan at deregistration

(a) Replacement Vehicle
Emissions Standard: Euro 5
Not eligible under ETS as Scheme is no longer applicable to Euro 5 replacement vehicles

(b) Replacement Vehicle
Emissions Standard: Euro 6

Assumptions

Existing Vehicle Replacement Vehicle
QP paid = $20,000
FRD: 1 September 2001
10-year COE Expiry Date: 31 August 2021
Reach 20 years old on: 31 August 2021
Deregistration Date: 31 August 2017
PQP for Category C = $50,000
Registration Date: 31 August 2017




Existing vehicle - eg 3
EXAMPLE 4

Category C existing vehicle with MLW = 5,000kg
FRD between 1 January 2001 and 30 September 2006
Deregistered between 1 August 2017 and 31 July 2019
Has only remaining statutory lifespan at deregistration

(a) Replacement Vehicle
Emissions Standard: Euro 5
Not eligible under ETS as scheme is no longer applicable to Euro 5 replacement vehicles

(b) Replacement Vehicle
Emissions Standard: Euro 6

Assumptions

Existing Vehicle Replacement Vehicle
QP paid = $20,000
FRD: 1 September 2001
10-year COE Expiry Date: 31 August 2017
Reach 20 years old on: 31 August 2021
Deregistration Date: 31 August 2017
PQP for Category C = $50,000
Registration Date: 31 August 2017




Existing vehicle - eg 4