Singapore has long been recognised as one of the frontrunners in sustainable development across Asia, and this commitment is clearly reflected in the country’s Green Plan 2030. Launched as a national roadmap for environmental sustainability, the Green Plan sets ambitious goals to reduce carbon emissions, enhance energy efficiency, and promote greener urban living. It outlines a wide range of initiatives across sectors such as energy, waste management, and water, all aimed at steering Singapore towards a more sustainable future.
A major focus of the Green Plan 2030 is transforming the transportation sector to run on cleaner-energy models. In fact, one of its key targets is for all vehicles in Singapore to operate on cleaner energy by 2040. To support this transition, the plan provides a variety of incentives, such as green car loans and other financing options, to make it easier for citizens to adopt electric vehicles (EV). Let’s take a closer look at how the Green Plan’s incentives and financing options are helping more Singaporeans make the switch to electric vehicles:
1) Encouraging New EV Buyers through the EV Early Adoption Incentive
The EV Early Adoption Incentive (EEAI) provides a rebate of up to 45% off the Additional Registration Fee for newly registered fully electric cars and taxis. For vehicles registered between January 2024 and December 2025, the rebate is capped at SGD 15,000, making the initial cost of buying an EV more manageable for first-time buyers and those switching from petrol or hybrid models. It is worth noting, however, that from January 2026, the rebate cap will drop to SGD 7,500, so those who adopt early will benefit the most from the current higher rebate.
Because it lowers the upfront financial commitment, the EEAI encourages buyers to explore financing options to spread the cost over time. This combination of government support and accessible financing removes a key barrier to entry and helps more Singaporeans make the switch to cleaner-energy vehicles.
2) Rewarding Low-Emission Choices through the Vehicular Emissions Scheme
The Vehicular Emissions Scheme (VES) offers rebates for vehicles with low emissions while imposing surcharges on high-emission models. Vehicles are classified from Band A1 to Band C2 based on their emission levels, with Band A1 being the cleanest and Band C2 the most polluting. For instance, an electric vehicle that falls into Band A1 can receive a rebate of up to SGD 25,000, while vehicles in Band C2 face an emissions surcharge of about SGD 25,000. This significantly lowers the overall cost of cleaner-energy vehicles and strengthens the financial incentive to choose low-emission options.
While the EEAI focuses on new adopters, the VES provides ongoing incentives for anyone choosing a low-emission vehicle. These measures help make cleaner-energy transport more financially attractive and encourage wider adoption of EVs across Singapore.
3) Supporting Business Fleet Upgrades through the Commercial Vehicle Emissions Scheme
Green Plan 2030’s electric vehicle initiatives extend beyond personal cars to commercial fleets as well. The Commercial Vehicle Emissions Scheme (CVES) targets businesses, offering incentives for low-emission or electric light commercial vehicles while imposing surcharges on high-emission models. These rebates help companies reduce operating costs when upgrading their fleets.
The scheme also makes cleaner-energy commercial vehicles more accessible and affordable. By encouraging businesses to adopt electric vans, lorries, or taxis, the CVES contributes to the wider adoption of EVs across both public and private sectors, supporting Singapore’s overall transition to cleaner transport.
4) Making EV Ownership More Convenient with Charging Infrastructure Grants
Grants such as the Electric Vehicle Common Charger Grant (ECCG) for residential locations and the Electric Heavy Vehicle Charger Grant (EHVCG) for commercial premises help cover part of the cost of installing EV chargers. Under the ECCG, the first 2,000 chargers are eligible for co-funding of up to SGD 4,000 per charger. Meanwhile, the EHVCG will co-fund up to 50 percent of the installation costs for electric heavy vehicle chargers, capped at SGD 30,000 per charger.
These grants ensure that drivers have convenient access to charging at home or work. More importantly, this support removes a major practical obstacle to EV ownership, making it easier for more Singaporeans to switch to cleaner-energy transport.
5) Supporting EV Adoption through Green Car Loans
A number of banks and financial institutions offer green car loans with lower interest rates, flexible repayment plans, and sometimes longer tenures specifically for electric vehicles. Although these loans are not directly part of Green Plan 2030, they complement its initiatives by making EV ownership more financially accessible for Singaporeans. When combined with government rebates and other incentives under the Green Plan, these loans help ensure that financing does not become a barrier and support the wider adoption of low-emission vehicles.
Driving a Cleaner Future
Singapore’s Green Plan 2030 is shaping the nation’s transition to low-emission transport through a combination of incentives, infrastructure support, and complementary financing options. Thanks to its lowering of financial and practical barriers, the Green Plan not only promotes sustainable mobility butalso supports Singapore’s broader climate goals. With these initiatives in place, the shift towards a gree ner, cleaner transport system is becoming increasingly achievable for both individuals and businesses across the country.