The country-state is rolling out a new scheme aimed at promoting cleaner and newer commercial vehicles starting April next year. The Commercial Vehicle Emissions Scheme (CVES) will see commercial vehicles classified into three categories based on their emission standards. The scheme will run until 31 March 2023.

Under the scheme, there will be a $10 000 surcharge for the most polluting vehicles while the cleanest vehicles will get a $30 000 incentive. The National Emergency Agency (NEA) and Land Transport Authority (LTA) said in a statement that this is to encourage buyers to choose models that have lower emissions across all criteria and are cleaner overall.

Masagos Zulkifli, Minister for the Environment and Water Resources said “The transport of goods and services is a major economic activity in Singapore. Commercial vehicles especially light goods vehicles are key emission sources and pollute our air due to their high mileage and reliance on diesel. ”

The CVES will apply to new vehicles as well as vehicles that are no more than three years old at registration. For owners whose vehicles are in Band A (cleanest vehicles), the incentive will be handed out annually in equal payments of $10 000 over three years. Owners of Band B vehicles will receive an upfront $10 000 incentive upon vehicle registration while owners of Band C vehicles will have pay a $10 000 surcharge upon registration.