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  Straits Times 26 Jan 07
Market adjusting to Euro IV move for cleaner air
Letter from Joseph Hui Director-General for Environment Protection
National Environment Agency

Today Online 26 Jan 07
Why charge more for 'green' taxis?
Letter from Lai Yew Chan Letter from Ang Li Liang

Straits Times 24 Jan 07
Anomalies on the road to 'greener' vehicles
Letter form Steve Tan Peng Hoe

Straits Times 23 Jan 07
Scrap higher flag-down rate for 'green' taxis
Letter from Koh Boon Keat

Straits Times 20 Jan 07
Greener cab ride comes at a higher price
A green cab costs similar to a normal cab but has higher rentals and fares

Straits Times 20 Jan 07
Crash in COE price may slow green efforts

Straits Times 20 Jan 07
Was move to new emissions standard too early?
Motor traders say yes, as the lack of enough Euro IV-compliant models has hit business, but NEA disagrees.
Senior Correspondent Christopher Tan looks at the issue

Straits Time 20 Jan 07
The drive towards cleaner air with cteuro package
By Loh Kim Chin

WHEN Singapore adopted the Euro II vehicle emission standard in 2000, the initial plan was to raise this to Euro III and then Euro IV.

But in March 2004, the Environment and Water Resources Ministry announced it would go straight to Euro IV by Oct 1 last year, citing growing concern over a fine airborne pollutant called PM2.5.

The term describes fine particulate matter that is 2.5 microns or smaller in size. These particles have been found to be a serious health hazard because they can get lodged in the deep recesses of our lungs. Studies conducted by the National University of Singapore found that diesel vehicles contribute to half the PM2.5 in the air here.

The ministry said while the air here meets most pollutant standards, the PM2.5 content is high, 40 per cent higher in fact than the level recommended by the US Environmental Protection Agency (USEPA). Singapore is not alone.

Most cities in the world fail the USEPA standard and many are taking steps to address it. India and China have been replacing aged diesel city buses with compressed natural gas (CNG) models, which emit very little or no PM2.5. In Hong Kong and Tokyo, the taxis run on liquefied petroleum gas (LPG). Thailand's ubiquitous tuk-tuks now run on LPG, too. In 2002, fuel stations in Hong Kong became the first in Asia to start selling ultra-low sulphur diesel, which produces less PM2.5 when spent. London is trying out a fleet of diesel-electric hybrid public buses, while New York took delivery of America's first hybrid school bus last July.

Singapore's attempts to switch to CNG as a transportation fuel have met with several hurdles. Transport operators have found CNG vehicles to be costlier to buy and costlier to run. The situation has not been helped by the absence of any CNG refuelling stations on the main island.

Enter the Euro IV plan. Euro IV vehicles emit about 90 per cent less particulate matter than Euro II models.

In announcing the roll-out, the ministry dangled carrots to businesses and vehicle owners who switched to Euro IV models earlier than October last year. To defray the intrinsically higher running cost of Euro IV vehicles, reduced forms of these incentives will run till the end of this year.

These incentives were as high was 100 percentage points off the vehicle tax for cabs, but a mere 5 points off for commercial vehicles. Hence only some companies made an early switch to Euro IV models. In embracing Euro IV, the ministry hopes to meet the USEPA's PM2.5 standard by 2014.

Straits Times 20 Jan 07
Greener cab ride comes at a higher price
A green cab costs similar to a normal cab but has higher rentals and fares

GREEN COSTS: ComfortDelGro says its Hyundai Sonata taxi, which is Euro IV compliant, costs 20 per cent more a month to maintain, which works out to be $2 more daily.

THE introduction of the Euro IV emissions standard has meant higher taxi rentals for some drivers and higher fares for their passengers. Taxi operators with Euro IV-compliant cabs from manufacturers like Hyundai, Skoda, Volkswagen and Kia charge cabbies who use them at least $7 more a day in rental.

In turn, the cabbies are allowed to charge $2.70 for their flag-down rate, 20 cents more than the rate for regular taxis like the Toyota Crown and Nissan Cedric.

Market leader ComfortDelGro believes the higher rates are justified, even though there is no tangible benefit for passengers who use these vehicles. It said although the purchase price of its fleet of Hyundai Sonata cabs is currently about the same or slightly higher than the Toyota Crown, the maintenance cost of the Euro IV car is 'expected to be some 20 per cent higher than that of a Euro II car'.

Spokesman Tammy Tan would not reveal the average cost of cab maintenance, but The Straits Times understands the average monthly bill for each taxi is no more than $300. If a Euro IV cab's maintenance cost is 20 per cent higher, the increase works out to be $60 a month, or $2 a day.

But the company is charging its drivers $95 or $98 a day for the Sonata, compared with $88 for the Crown, at least $7 more.

Cabby C.K. Chan, 55, said that the new Hyundai Sonata is not worth the higher rental. 'The car does not look big compared to the Crown and I think fewer people would want to take it because it costs more,' he said.

The Hyundai Sonata, however, does offer cabbies the convenience of automatic transmission. The current Japanese taxis are all manual.

Ms Tan said that though drivers are not compelled to drive the Sonata, demand for them 'has been strong'. Premier Taxis, which will introduce more Kia Magentis cabs this year, said it too will charge $2.70 for the flagdown. 'We just follow Big Brother,' said its spokesman, referring to ComfortDelGro, which dominates the market.

While some commuters said they were against paying more for a Euro IV cab ride, Ms Lau Sau Kuen, a technopreneur in her 30s, said: 'I don't mind, because I'm quite environmentally conscious.'

Those who are not so green-minded will still have a choice. The Toyota Crowns and Nissan Cedrics still make up the bulk of Singapore's fleet of 23,000 cabs. They will be around up to 2013 or so, when the last of these old models are scrapped.

Straits Times 20 Jan 07
Crash in COE price may slow green efforts

THE Euro IV diesel emissions standard has caused another unexpected blip in the vehicle market - a crash in the commercial vehicle certificate of entitlement (COE) premium in the last three tenders.

This may have a significant impact on the effort to clean up the air in Singapore.

The stage was set several months ago, before Euro IV came into effect on Oct 1 last year. Realising that vehicles that meet the strict emissions standard could cost up to 30per cent more than Euro II models, consumers rushed to buy Euro II vehicles in the months leading up to October.

And because some dealers knew their Euro IV-compliant models would not be available until well after October, they stocked up on Euro II vehicles, hoping to sell them before the deadline.

The buying frenzy that ensued drove the commercial vehicle COE premium to as high as $15,201 in September, nearly three times the price at the beginning of the year. When October came around, the frenzy dissipated. The COE price fell to $2,001 in October's second tender, $1,003 in November and $509 last month. It then plummeted to $1.

This is not necessarily good news. While it may benefit buyers without vehicles that are close to expiry, those with fairly new fleets, including those who bought just before the crash, will incur a sharp drop in resale values.

Motor traders expect the $1 price to remain in upcoming tenders. 'We warned that this would happen,' said Motor Traders Association president Chia Yong Sian.

The industry reckons the freak results might prompt some vehicle owners to extend the lifespan of their fleets instead of replacing them, since there is no rule against renewing the COE for non-Euro IV vehicles by another 10 years.

Landscape contractor Ng Hai Thong, who has a fleet of pickup trucks between four and eight years old, is already planning to do so. 'It's much cheaper than buying new trucks,' Mr Ng said.

The current fee for renewing a truck COE - based on a three-month moving average of commercial vehicle COEs - has already plunged to $864. That's from an average of $8,200 last year. And it could fall further.

This renewal fee compares with a purchase price of around $40,000 for a brand new 10-foot truck, the most popular kind here.

If large numbers of owners renew their old fleet, combined with the number of people who bought new vehicles before the October deadline, the conversion of Singapore's diesel vehicles to Euro IV will be significantly slowed.

It will also mean that potentially thousands of Euro II and Euro I vehicles will remain on the road for 10 or more years.

Meanwhile, motor dealers and used-vehicle agents who registered non-Euro IV Japanese commercial vehicles in recent months are now reselling them. Speculators might renew large numbers of old vans because of the low renewal fee. They will resell them later at a profit when COE prices head north. This happened in the past with cars, when COE prices plunged.

The demand for non-Euro IV vehicles is high not only because they cost less, but also because they incur lower operating costs. And because they are lighter than Euro IV models, they can be parked at HDB carparks for $90 a month, whereas it will cost $190 for many Euro IV models.

If the commercial vehicle COE premium had not crashed, the renewal fee would not have dropped, and the urge to renew old vehicles would not have been so strong. Hence the movement towards cleaner air in Singapore might have taken place faster.

Straits Times 20 Jan 07
Was move to new emissions standard too early?
Motor traders say yes, as the lack of enough Euro IV-compliant models has hit business, but NEA disagrees.
Senior Correspondent Christopher Tan looks at the issue

ON PAPER, it looked like a simple decision. But in practice, the implementation of a new emissions standard slashing pollution levels from diesel vehicles has left many buyers and dealers in the lurch.

According to the Motor Traders Association (MTA), the so-called Euro IV standard, which came into effect on Oct 1 last year, has seriously disrupted business, because there are simply not enough compliant models available.

The association says it supports the Euro IV initiative, but the implementation date was imposed too early for everyone to comply in time.

Europe and Japan - where most of Singapore's vehicles come from - introduced the same standard a few years ago. Manufacturers there had until this year to switch all the vehicles they are producing to the new standard. In Japan, any new model launched from January 2005 had to comply with the new standard, but models already in production were given until September this year to comply, 11 months later than Singapore.

Europe imposed similar deadlines to minimise disruption to car manufacturers. Although Euro IV was announced there as far back as 2000, the cut-off date for all models to switch over was this month, three months after Singapore.

As a result, several Euro IV models were not ready by the October deadline, and many still are not ready.

MTA president Chia Yong Sian said: 'As Singapore is a comparatively small market (accounting for less than 0.3 per cent of worldwide sales), manufacturers will not allow their global production and inventory strategies to be dictated by it.'

The National Environment Agency (NEA), which stood firm despite several appeals for an extension, implemented the early deadline because the amount of ultra-fine soot in the air here exceeds the United States Environmental Protection Agency's recommended safe level by 40 per cent.

Diesel vehicles are responsible for an estimated 50 per cent of that amount. Known as PM2.5 - particulate matter 2.5 microns or smaller - this fine soot is a health hazard. 'High levels of PM2.5 pose health risks, as the fine particulates can penetrate deeper into the respiratory system, causing asthma and various respiratory diseases,' the NEA said.

Euro IV engines emit around 90 per cent less PM2.5 than Euro II engines, which drive the majority of diesel vehicles here. Though the NEA expects the new standard to help Singapore achieve safe PM2.5 levels by 2014, motor traders say the hurry to implement it could be counter-productive.

With the recent crash in the commercial vehicle COE premium to $1, the fee to renew certificates of entitlement on existing goods vehicles on the road has also plunged.

This means large numbers of owners might extend the lives of their Euro II vehicles instead of buying new Euro IV ones, defeating the objective of early implementation.

Already, being earlier than Japan has come at a price. Before last October, commercial vehicle buyers in Singapore had a choice of 160 models across 40 brands. Between October and last month, Land Transport Authority figures showed new registrations covered only 33 models from 11 makes.

New registrations have also plunged, partly because of a rush to register new vehicles before Oct 1. In November, six buses and 390 goods vehicles were put on the road, compared with 471 buses and 2,873 goods vehicles in September. The bulk of models that did not make the cut-off were from Mitsubishi, Nissan, Daihatsu and Isuzu.

Replacements for most makes will not start arriving until March, with most taking until the end of the year.

The NEA says the supply disruption is 'temporary' and insists that that a complete range of commercial vehicles is available, although not across every brand.

But some buyers are unwilling to change to other brands. Fleet owners like scrap dealer Steven Goh, minibus operator Leong Kong Yew and furniture maker Chua Lian Choon told The Straits Times they want to replace their ageing Nissan trucks and buses, but the new models are not available here yet.

Toyota was the only Japanese maker able to supply a full range of Euro IV commercial vehicles in time, but it will take another year or so to get a substitute for its Toyota Crown cab to the Singapore market.

NEA chief executive Lee Yuen Hee says the agency was aware that Singapore was implementing the standard earlier than Japan and Europe, but stuck to the deadline because 'we did not get a strong and clear indication that the manufacturers could not meet it'.

Since the deadline was announced in early 2004, the motor industry has been appealing for a delay, even roping in the assistance of the Japan Automobile Manufacturers Association.

Even so, dealers did try their best. Mitsubishi considered sourcing vehicles in Britain and Toyota looked at a European model called the Avensis as a possible taxi, but both plans fell through. The industry was more than a little surprised when the move to Euro IV was announced.

Singapore's original plan was to ease into the stringent standard by adopting Euro III first. Next to Hong Kong, which went Euro IV in January last year, Singapore is the only country in Asia that has embraced Euro IV.

The Straits Times understands supplies of some Japanese makes in Hong Kong have also been disrupted because of the early implementation. The Government was of the view that going the Euro III-Euro IV route would be too slow in clearing the air.

Still, observers wonder if Euro IV could have been introduced more painlessly for all. 'The implementation could have been less harsh,' said the distributor of a European brand with a ready supply of Euro IV models. 'Even in Europe, consumers and businesses are given several years to phase into a new emission standard. Those who can do so earlier are given attractive tax breaks.'

He said the five percentage point cut in tax extended to early adopters here for commercial vehicles was 'not meaningful'.

Mr A.C. Neo, marketing director of Nissan agent Tan Chong, said his company will lose sales of more than 3,000 vehicles because Nissan would not have a full range of Euro IV models until next year.

Mitsubishi agent Goldbell Engineering stands to lose about 2,000 units in sales and has taken its appeal up with the Ministry of the Environment and Water Resources.

And though Toyota agent Borneo Motors saw van and truck sales rise 40 per cent last month, its taxi sales have ground to a halt. Managing director Mark Choong said: 'Even if the implementation date was pushed back, we would have been better off because of the taxi business.' The loss of its taxi business is expected to cost Borneo Motors - part of the London-listed Inchcape plc group - revenue of about $100 million. At a conservative 10 per cent margin, that works out to be $10 million in earnings.

Ultimately, the NEA said, the cost to the car industry had to be 'weighed against the more fundamental environmental and health considerations'.

Nevertheless, when the time comes to adopt Euro V, Mr Lee admitted the agency will have learnt some valuable lessons.

Straits Times 23 Jan 07
Scrap higher flag-down rate for 'green' taxis
Letter from Koh Boon Keat

IT HAS been reported that commuters can expect to pay more for their cab rides as taxi company ComfortDelgro begins replacing its fleets with new vehicles that meet tougher new emission standards.

In addition, Singapore's first fleet of compressed natural gas taxis by Smart Automobile has a higher flag-down rate of $3.00 since being launched a year ago.

A green vehicle is a vehicle that is considered to be environmentally friendly. This is accomplished by having a low dust to dust energy cost.

While I welcome the move towards having cleaner emissions on the road, I hope that the relevant taxi companies will consider scrapping the higher flag-down rates for environmentally friendly vehicles. I believe in promoting environmental issues to members of the public and enjoy green savings in return, such as choosing a more energy efficient appliance or eco-friendly products.

At the same time, these habits should drive the importance of green profits to the industry by driving home the message of reducing excess, recycling waste products and reusing materials in operational processes.

Consumers in Singapore are already consistently rated as being a wasteful group, and recycling efforts have always trailed behind other countries.

For example, car buyers in Singapore prefer Sports Utility Vehicles (SUVs) even though SUVs typically use more fuel than some cars. We believe that consumers need to make more informed sensible choices in their purchasing decisions without compromising on quality.

Having a higher flag-down rates sends a contradictory negative message to all users that it is expensive to go green.

I hope that the taxi companies will either put the higher flag-down rates on hold, or withdraw the environmentally friendly vehicles from our roads until they are able to compete dollar for dollar with the fossil fuel-based vehicles. I believe that this will be good for all taxi companies and commuters in the long run.

In short, companies should embrace green practices as part of their corporate working culture and project this brand to the members of the public who use their products and services.

One of the ways by which global companies gain one-upmanship is to market economic, environmental and social factors into a strong brand image. I do not believe that being environmentally friendly, socially responsible and staying profitable are exclusive concepts.

I believe that once a company brings this social and environmental perspective to its strategy development and operational planning, it will reperceive the issue of social responsibility and environment and find many opportunities to turn that practice into a distinctive brand competency.

Straits Times 24 Jan 07
Anomalies on the road to 'greener' vehicles
Letter form Steve Tan Peng Hoe

THE recent brouhaha over the new emission standard for diesel vehicles brings to light a bane of public-policy formulation, where the goal is clear but the means to achieving that goal, doubtful.

The authorities did well to implement the Euro IV emission standard ahead of other countries, but a shortage of vehicles meeting the new standard created a market anomaly. People rushed to register Euro II vehicles before the deadline, causing COE prices for goods vehicles to climb.

After the deadline, registrations plunged, bringing COE prices down to just $1. Owners of goods vehicles nearing their 10-year tenure are likely to renew their COEs because the Prevailing Quota Premium is way lower than the cost of buying a new Euro IV vehicle.

The result: More, rather than fewer, vehicles that do not meet Euro IV standards. Although the authorities have clarified that the plunge in COE prices is not due to the lack of vehicle choices, and enough notice was given, the statistics speak for themselves.

Two months ago, a reader commented on the road tax on environmentally-friendly cars ('Road tax too high despite 'green' rebate'; ST, Nov 21), As yet, there has been no reply.

The anomaly in this instance? Pegging the road tax of such cars to their engine capacities or power output, whichever is higher. So, on the one hand tax rebates are given for environmentally-friendly cars, and, on the other hand, buyers of such vehicles may be penalised by a higher road tax.

So are we encouraging people to buy such cars, or are we actually discouraging them? Why should someone buying the Lexus RX400h, which has an excellent hybrid engine, pay more road tax than someone driving a powerful sports sedan that does not use a hybrid engine?

Also, many continental makes have turbo-diesel variants that have even lower particulate-matter emissions, compared to petrol engines. Yet, these vehicles are not available in Singapore. It is not true that diesel engines pollute the environment more than petrol ones.

Diesel is generally simpler to refine and diesel-powered cars have better fuel economy and produce less greenhouse gases. So why are we not embracing the new generation of diesel vehicles?

I appreciate that environment-related policies are often difficult to legislate and implement. Perhaps the best way is for the authorities to listen to the industry and motorists and fine-tune policies accordingly.

The logic behind policies is not in dispute, just the implementation.

Straits Times 26 Jan 07
Market adjusting to Euro IV move for cleaner air
Letter from Joseph Hui Director-General for Environment Protection
National Environment Agency

THE report, 'Was move to new emissions standard too early?" (ST, Jan 20), correctly highlighted that environmental and public-health considerations were behind Singapore's decision to adopt the Euro IV standard for new diesel vehicles from Oct 1 last year.

Diesel vehicles emit more particulates than petrol vehicles, contributing half the amount of particulate matter finer than 2.5 microns or PM2.5 in our ambient air. When compared to petrol vehicles, their emission performance is more dependent on how the engines and pollution-control devices are maintained. Euro IV diesel vehicles emit 70 per cent less particulates, compared to Euro II ones.

The decision to adopt Euro IV was announced in March 2004 to give affected stakeholders 21/2 years to make adjustments. The National Environment Agency (NEA) had engaged stakeholders early and widely to meet this target.

The report said that the European Union cut-off date for all models to switch over to Euro IV was this January. We would like to clarify that in the EU, all new models of diesel vehicles were required to meet Euro IV from January 2005. Existing models had to be Euro IV- compliant from Oct 1 last year.

One class of existing models - light-duty commercial vehicles with an unladen weight of 1,305 to 3,500 kg - was given up to Jan 1 this year to comply. And as the report noted, in Singapore Euro IV models across the whole range of diesel vehicles have been available in the market since last October. Over time, more makes will come in.

Another report the same day, 'Crash in COE price may slow green efforts', attributed the fall in COE prices to the Euro IV introduction. We note that besides the drop in the prevailing quota premium, other factors - like the remaining value of current COEs, the higher cost of maintaining older vehicles, and the cost of new Euro IV vehicles - will influence purchase decisions.

We thank the taxi companies and commuters who supported the move towards Euro IV taxis in the report, 'Greener cab ride comes at a higher price'.

In adopting Euro IV, overseas experiences were studied and stakeholders consulted. However, not all stakeholders may take in changes at the same pace. NEA will continue to engage them, taking note of successes and concerns.

The market is adjusting and all will switch over to a standard that is less pollutive in due course.

We thank Mr Jairam Amrith ('Press ahead with drive towards cleaner air'; ST, Jan 23) for his views. His view is consistent with those of many who are concerned for our environment and public health.

More information on the programme to reduce PM2.5 emissions as part of the Singapore Green Plan 2012 is available at www.mewr.gov.sg.

NEA is committed to enhancing our air quality. And we will continue to take into consideration and balance the interests of all stakeholders.

Today Online 26 Jan 07
Why charge more for 'green' taxis?
Letter from Lai Yew Chan

YOUR commentary, "Get on the flight to self-preservation" (Jan 24), reminds me of similar initiatives to introduce environmentally friendly taxis.

Where airfares are concerned, I can understand why plane passengers will be expected to pay more in future. They will have to pay to mitigate the externality of pollution they are contributing.

However, it is beyond me why taxi commuters have to pay a higher flag-down rate when they hire an environmentally friendly taxi. The flag-down rate for such taxis should be lower than their conventional counterparts' because they have traded in the "right" to pollute.

This necessitates a differential that reflects the social cost of polluting more. Moreover, commuters taking environmentally friendly taxis must not be led to perceive that they are cross-subsidising other taxi commuters in lessening the impact of "an inconvenient truth", to borrow the term from a recent movie.

Otherwise, a disincentive for more environmentally friendly taxis will exist in place of a rightful incentive.

Understandably, taxi companies need to do their own sums. But the fare structure should not give rise to an anomaly that flies in the face of sound economic sense.

Letter from Ang Li Liang

IT IRKS me to see how companies are refusing to absorb the cost of maintaining the cost of Euro IV-compliant taxis and passing it to commuters.

It is understood the flag-down rate is $2.70 (instead of the standard $2.50) for Hyundai Sonata cabs to cover the higher rental costs for the taxi drivers. This is a lose-lose situation for commuters and drivers, who will lose customers.

I have done some calculations based on the statistics on the LTA website. A two-shift taxi takes about 34 trips and 8.7km per trip, which amounts to additional income of $0.20 x 34 = $6.80. It is said these taxis are more fuel efficient at $0.70 per 10km compared to Toyota Crowns at $0.81 per 10km. But this only works out to about savings of (34 x 8.7) x ($0.081 - $0.070) = $3.25.

Therefore, the total still barely covers the $10 increase in rental--and the driver's nett income remains the same.

Although the Hyundai Sonata costs about 22 per cent more than other taxi models, and the cost of maintenance is $2 more per day, it is a business decision by the company.

I believe with economies of scale, when more such taxis are available, the cost of maintenance will fall. But I fear that in time to come, the starting fare for all taxis will be $2.70.
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