COS 2022: Green Transition in Last-mile Logistics

MP Dennis Tan

Mr Dennis Tan Lip Fong (Hougang): The increase in our green ambitions require us to look at emerging trends last mile logistics. Online retail sales have averaged 13.5% in total retail sales in Singapore in 2021, compared to an average of 5.4% of retail sales between 2018 and 2019.

This has meant great convenience to Singaporeans who purchase from online platforms, but it also is likely to mean that there is more demand for last mile logistics. Today, all types of goods vehicles are all of the diesel engine variety. The increase in demand for last mile logistics will mean an increase in our carbon footprint.

A study by the World Economic Forum in 2020 prior to the pandemic, indicates that the expected growth in last mile delivery is likely to increase carbon emissions by 30% by 2030. The accelerating effects of COVID-19 would have increased the carbon emissions more rapidly. To be clear, the Government has made some steps to mitigate the issue. During Committee of Supply (COS) last year, then Minister for Transport, Mr Ong Ye Kung, made the announcement that no new diesel cars and taxis will be allowed to be registered from 2025.

The current Commercial Vehicle Emissions scheme, which started in April last year, was designed in part to persuade owners of light commercial vehicles, which make up 68.9% of all goods vehicle, onto vehicles that burn cleaner fuels. We have also seen electric light commercial vehicle models increasingly being rolled out by manufacturers such as Renault, Opel and BYD.

The main constraint is electric charging infrastructure, which is still in its infancy. I therefore wish to seek updates from the Minister on the plans of a green transition for such goods vehicles, starting with an update on Government’s targets to convert goods vehicle to EVs and other green options and plans to achieve these targets.

Will the Ministry be getting more industrial estate operators to roll out more EV charging infrastructure around industry areas and encourages a switch to electric light commercial vehicles and vans? Will there be subsidies for companies that adopt these electric vehicles early?

8 March 2022
Ministry of Sustainability and the Environment

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