Here's why you might want to switch to low carbon-emitting cars

Get a car with 160g CO2/km.

According to an LTA release, all new cars, taxis, and imported used cars with low carbon emissions and registered from 1 January 2013 will qualify for rebates when the new Carbon Emissions-Based Vehicle Scheme (CEV) kicks in.

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 carbon emissions per kilometre (CO2/km) will qualify for rebates of between $5,000 and $20,0002 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.

Taxis generally clock higher mileage than cars. 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.

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.