In recent years, Singapore has implemented a range of policies and initiatives aimed at reducing greenhouse gas emissions and promoting sustainable practices. Two of these are the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and the Carbon Pricing Act.
As a leading provider of commercial vehicles in Singapore, Think One is dedicated to keeping customers in the know about the latest updates on these initiatives. Keep reading to learn more about the two other crucial schemes, namely the Carbon Emissions-Based Vehicle Scheme (CVES) and the Emissions Trading Scheme (ETS), and the changes that have been made to these schemes.
CVES extended to include Scope 3 emissions
The CVES was first introduced in Singapore in 2018, and it is designed to encourage the adoption of low-emission commercial vehicles. Under this scheme, cars and taxis are given rebates or surcharges based on their emissions levels. The scheme was updated in early 2021 to include Scope 3 emissions, which are emissions that occur outside of a company’s direct control, such as those from the production of purchased goods or services.
This change means that businesses that are part of a supply chain will need to account for their indirect emissions as well as their direct emissions. For example, a manufacturer of food products will need to consider the emissions generated by the production and transportation of the raw materials they use, as well as the emissions generated by the manufacturing process itself.
Emissions threshold lowered for ETS scheme
The Emissions Trading Scheme (ETS) was introduced in Singapore in 2019 and applies to large emitters in the power generation and industrial sectors. Under this scheme, companies are given a carbon allowance, which is the maximum amount of emissions they are allowed to produce. If a company exceeds its carbon allowance, it must purchase additional allowances from the market or face fines.
In January 2021, the government announced that it would be lowering the emissions threshold for the ETS scheme. This means that more companies will now be subject to the scheme’s regulations. The threshold has been lowered from 25,000 tonnes of carbon dioxide equivalent (tCO2e) per year to 10,000 tCO2e per year. This change is part of Singapore’s efforts to meet its target of reducing emissions intensity by 36% below 2005 levels by 2030.
How to participate in CVES and ETS schemes
Businesses that want to participate in the CVES scheme can do so by purchasing vehicles that meet the emissions standards set out by the Land Transport Authority (LTA). These standards are based on the vehicle’s carbon dioxide emissions per kilometre travelled. Once a business has purchased a qualifying vehicle, it can apply for a rebate or surcharge from the LTA.
Companies that are subject to the ETS scheme must first register with the National Environment Agency (NEA) and submit an emissions report. They will then be allocated a carbon allowance, which they can use to cover their emissions or trade on the market. For detailed guidance, reach out to NEA on how to participate in the ETS scheme, as well as information on reporting requirements and compliance obligations.
The implementation of these schemes signifies Singapore’s commitment towards a more sustainable future, and businesses that prioritise them will have a competitive edge in the evolving economic landscape. Take a step further by opting for second hand cars and commercial vehicles for an added step towards environmental sustainability. Doing so not only reduces the demand for new vehicles, but also extends the lifespan of existing ones, saves money, and helps businesses achieve their sustainability goals.
From used cars for sale to eco-friendly commercial vehicles, Think One carries options for every business requirement. Reach out today to learn more about our range, and how we can help you achieve your sustainability goals.