New Vehicular Emissions Scheme (VES)

petetherock

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http://www.straitstimes.com/politic...l-qualify-for-rebates-in-new-emissions-scheme

Hits both diesel and petrol cars:

SINGAPORE - If buying habits remain unchanged, more car buyers and taxi operators will be liable for tax surcharges when a new Vehicular Emissions Scheme (VES) kicks in from Jan 1 next year.

The new scheme, administered by the National Environment Agency and announced by Minister for the Environment and Water Resources Masagos Zulkifli on Wednesday, will be stricter on carbon dioxide emission, and will include four other pollutants, namely hydrocarbons, carbon monoxide, nitrogen oxides and particulate matter.

There will be two rebate bands, two surcharge bands and one neutral band, compared with the current four, four and one, respectively.

Rebates and surcharges are either $10,000 or $20,000 for cars, and $15,000 or $30,000 for taxis, compared with $5,000-$30,000 and $7,500-$45,000 today, respectively.

The new VES will apply to all new cars and cabs, as well as imported used cars. It will apply till Dec 31, 2019. The NEA said it would be reviewed regularly.

Models will be categorised according to each of its worst-performing standard. Diesel models, with their comparatively low CO2 levels which would have qualified them for generous rebates, are likely to be slapped with hefty surcharges because of their relatively high nitrogen oxide and particulate matter emissions.


While diesel models will bear the brunt of changes, petrol models are also treated more stringently. Many popular petrol cars which qualify for $5,000 or $10,000 tax breaks today will fall into the neutral band, where no rebate nor surcharge is applied.

Even the petrol-electric hybrid Toyota Prius 1.8 in its current form, which is granted a $30,000 rebate today, is deemed neutral in the new VES.

As of now, only electric models are likely to qualify for the top rebate of $20,000 and $30,000 for cars and taxis, respectively. This tier stipulates zero emission for particulate matter, and near-zero emission for the other pollutants and less than 90g/km of CO2.

There will however be a grid emission factor to take into account the CO2 produced in the production of electricity used to charge these battery-powered vehicles. The Land Transport Authority said this factor will only be announced "in due time".

Meanwhile, the Early Turnover Scheme (ETS) will offer bigger carrots to entice fleet owners to replace their older light diesel commercial vehicles with those which comply with the latest Euro 6 emission standard.

The enhanced scheme, which will run from Aug 1 this year to July 31, 2019, targets owners of Euro 2 and 3 light commercial vehicles of up to 3,500kg. Those qualifying will be granted a 35 per cent Certificate of Entitlement (COE) bonus of their vehicle's remaining 20-year lifespan, up from 13 per cent now.

This bonus will be applied as a discount to the COE prevailing quota premium, which the owner can use for his replacement vehicle instead of having to bid for a fresh certificate.

This change is likely to spur a higher take-up of the ETS among light commercial vehicle owners. Currently, the bonus is more generous for those owning heavier vehicles.
 

petetherock

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http://www.straitstimes.com/singapore/transport/a-more-holistic-emissions-scheme

Singapore's carrot-and-stick approach to converting its vehicle population to an environmentally friendlier one has been effective, if gradual.

Before the current Carbon Emissions-based Vehicle Scheme (CEVS), there was the Green Vehicle Rebate (GVR), which spurred sales of higher-end cars such as Lexus and Porsche hybrids.

The technology-biased GVR was replaced in 2013 by the CEVS, which meted out tax rebates and surcharges according to a vehicle's carbon emission.

The standards were tightened in July 2015 to incentivise models that were even cleaner.

The scheme has cost over $100 million in forgone taxes and helped make kerbside air quality better.



The CEVS regularly faced calls to account for pollutants other than carbon emitted from the tailpipe.

It is good news then that the Vehicular Emissions Scheme (VES) is doing just that, even if it comes hot on the heels of Volkswagen's 2015 "Dieselgate".

The German group tailored its diesel engines to pass emission tests, but on the road, the same engines would spew up to 40 times more nitrogen oxides.

Volkswagen has bounced back, but the question now is whether manufacturers might game the VES. There is little doubt that they will try.

Going by current emission readings, nearly half of the cars we have here today will be either in the Neutral or Surcharge band.

The VES categorises a car (or taxi) according to its worst-performing pollutant. Many models, especially those with diesel engines, will trip over the nitrogen oxides and particulate matter hurdles.

Even the Toyota Prius hybrid, which is touted as one of the cleanest cars available today, gets a Neutral banding in its current form. The car qualifies for the highest $30,000 rebate in the current CEVS.

Unless Toyota is able to come up with a cleaner variant, sales of the Prius might dry up next year. In fact, all other hybrids might face the same fate if their current engine specifications remain.

Other hot-selling cars today might also fizzle out. BMW's 216dcurrently enjoys a tax break of $10,000. But under the VES, it faces a penalty of $20,000.

French brands like Renault and Citroen, which have been banking on their diesel line-up, will face a similar roadblock.

But it is taxi operators that will bear the brunt of the new scheme. Traditionally reliant on diesel engines because of their low running cost, they will now find alternative engines more viable.

And there are many alternatives. Petrol engines have improved markedly in recent years, and are now almost on a par with diesel equivalents in terms of efficiency.

Petrol-electric hybrids are more efficient than diesels. Elsewhere, cabs have also run successfully on compressed natural gas and liquefied petroleum gas. And, of course, there is the electric option.

Whichever option they choose may cost a bit more initially. But in the long run, Singapore on the whole will benefit from air that is less tainted by smoky tailpipes - a scourge that has remained despite decades of enforcement.

http://www.straitstimes.com/sites/d...ts/2017/03/09/st_20170309_vnchart_2993114.pdf

st_20170309_vnchart_2993114.jpg
 

petetherock

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Good bye diesel?
http://www.straitstimes.com/singapore/transport/diesel-vehicles-may-be-on-the-way-out

Motor industry players and experts reckon the days of diesel vehicles are numbered here.

They were reacting to news of a new Vehicular Emissions Scheme announced by Minister for the Environment and Water Resources Masagos Zulkifli yesterday. The scheme will be far stricter than the current Carbon Emissions-based Vehicle Scheme. Besides carbon dioxide emission, it will include four other pollutants, namely hydrocarbons, carbon monoxide, nitrogen oxides and particulate matter.

Mr Neo Nam Heng, chairman of diversified motor and taxi group Prime, said: "This new scheme will have a great impact on car prices. And it will kick out diesel cars."

Dr Park Byung Joon, a transport expert at UniSIM, said: "We're doing what several other countries are doing - we don't want diesel to be around any more."

He noted that diesel engines are "fundamentally dirtier", and vehicle manufacturers have had to "do a lot" to make them acceptable.

About the new VES
The new Vehicular Emissions Scheme (VES) will cover four additional pollutants: hydrocarbons, carbon monoxide, nitrogen oxides and particulate matter.

Vehicles will fall into one of five bands - two surcharge bands, two rebate bands and a neutral band - based on their emissions and worst-performing pollutant.

Rebates and surcharges are either $10,000 or $20,000 for cars, and $15,000 or $30,000 for taxis.

In the wake of the Volkswagen emission cheating scandal in late 2015, several countries started re-examining their stand on diesel.

But even before this, studies had already shown that cases of respiratory problems such as childhood asthma had been creeping up in some places, including Germany, where the share of diesel cars was as high as 60 per cent.

This share is forecast to plunge to below 40 per cent this year in the wake of the VW scandal.

Cities such as Paris, Mexico City, Madrid and Athens have also vowed to ban diesel vehicles altogether from 2025.

Mr Allan Loi, a research associate at the Energy Studies Institute at the National University of Singapore, said the new scheme "should be able to encourage the adoption of cleaner cars". He added that diesel cars - as well as diesel taxis - will "slowly be phased out".

Under the new scheme, most if not all diesel cars today will attract a tax surcharge of at least $10,000. Diesel taxis face a penalty of up to $30,000. Observers said this was why cab operators had started switching to petrol-electric hybrids.
 

Expert

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good luck to those who renewed their old cars... :s22:
 

superman

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I thought last time tax the Tesla guy jialat jialat now say electric car can get most rebate from VES. Seeing COE prices is stable, now cut rebate to get more taxes from vehicles, knowing that most people won't buy electric cars anyway. Good Job LTA, now waiting for the GST increase. :s13:
 

tankgunner

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CEVS is a joke to begin with.
it just eat into your parf value.

CEVS has no impact on my car purchase decision making.
 

superman

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CEVS is a joke to begin with.
it just eat into your parf value.

CEVS has no impact on my car purchase decision making.

Parf Rebate is 50% of ARF if you scrap your car in the 10th year so you won't get back all you pay for ARF.

EVS will affect car price which will affect the downpayment one need to pay, unless you are telling me that the amount of downpayment one need to pay will not affect one's car purchase decision.
 

superman

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How does it affect those who renew their car's COE for another 5 or 10years?

Sent from Xiaomi MI MAX using GAGT

It would be more difficult for old cars to pass the new inspection emission standard compared to new car, of course you can maintain your old car to be like new but you would probably spend more money which would defeat the purpose of renewing your coe in the first place.
 

Alphas

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The future trend will be in hybrids and electric cars, but there are such a small number of charging stations.
 

Kula Diamond

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It would be more difficult for old cars to pass the new inspection emission standard compared to new car, of course you can maintain your old car to be like new but you would probably spend more money which would defeat the purpose of renewing your coe in the first place.

Keep stock for old cars shouldn't be a problem , anyway the scheme is aim at new cars not existing cars
 

superman

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Keep stock for old cars shouldn't be a problem , anyway the scheme is aim at new cars not existing cars

"any car registered between Jan 1, 2001 and March 31, 2014 currently cannot have more than 3.5 per cent of carbon monoxide in its emission. This cap will be lowered to 1 per cent from April next year."

For new cars sure not problem as the distributor will make sure the cars comply with the new emission standard before delivering to you, for old cars, passing the new inspection emission standard will depend on how well you maintain your car. It will be interesting to find out how many coe cars which will otherwise pass the old standard will fail this new standard.
 

Kula Diamond

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"any car registered between Jan 1, 2001 and March 31, 2014 currently cannot have more than 3.5 per cent of carbon monoxide in its emission. This cap will be lowered to 1 per cent from April next year."

For new cars sure not problem as the distributor will make sure the cars comply with the new emission standard before delivering to you, for old cars, passing the new inspection emission standard will depend on how well you maintain your car. It will be interesting to find out how many coe cars which will otherwise pass the old standard will fail this new standard.

If their cat is around , no modification should be able to pass
 

urban_closet

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Crazy changes... the policy on private car has flip flopped more times than the Roti Prata store @ Thomson.

Diesel car driver here. Even if my car is Euro 6 standard, the proposed will surely affect my resale price.
 

kebinu

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This is a horrible change to car owners to be. The prices will just go up $40k for some models immediately. Of course, if spending power remains, COE will drop. But what's the point when COE where to drop to $20k and the car prices is close to today's?

No point waiting for COE to be dropped liao.
 
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