Singapore
Singapore
March 15, 2024

Singapore's Electrification Drive: Steering Towards a Sustainable Fleet Future

Harnessing Electric Vehicles for Greener Corporate Fleets in Singapore

Singapore's Electrification Drive: Steering Towards a Sustainable Fleet Future
Singapore
March 15, 2024
Singapore's Electrification Drive: Steering Towards a Sustainable Fleet Future
Harnessing Electric Vehicles for Greener Corporate Fleets in Singapore
Summary

Singapore's journey towards sustainable fleet management and vehicle electrification is a testament to its proactive stance on environmental sustainability and innovation. With a strategic focus on reducing CO2 emissions through the adoption of electric vehicles, Singapore is paving the way for a greener, more sustainable transportation future. The country's comprehensive approach, including significant increases in EV registrations, government incentives, and the expansion of the charging infrastructure, exemplifies a model for successful fleet electrification. As Singapore continues to lead in the transition towards clean mobility, its efforts highlight the importance of policy support, infrastructure development, and corporate participation in achieving significant environmental benefits. The nation's journey towards electrification not only contributes to global sustainability goals but also offers valuable insights into the potential for electric vehicles to reshape the future of urban transportation.

Country General Overview

Introduction

Singapore's economy showcases resilience and a forward-looking stance, characterized by its adaptability and innovation-driven growth. The nation's strategic focus on maintaining a high level of efficiency in logistics and transportation infrastructure makes corporate fleet management a critical component of its economic framework. In 2022, Singapore's economy witnessed a growth of 3.8%, demonstrating its robust economic health despite global challenges​​.

Geographic and Infrastructure

Singapore's geography is characterized by its strategic position at the southern tip of the Malay Peninsula, with a total land area of about 728.6 square kilometers. The country boasts a highly developed and well-maintained road network spanning approximately 3,500 kilometers, supporting the transportation needs of its population and economy. Despite its compact size, managing traffic congestion and optimizing logistics in one of the world's busiest ports presents challenges for fleet management. Singapore's approach to these challenges includes leveraging technology, strict vehicle ownership regulations, and an emphasis on public transportation to ensure efficient and sustainable fleet operations.

Economic

With a GDP of over $340 billion and a population of about 5.7 million, Singapore's economy is notable for its diversification, including manufacturing, services, and logistics. The country has a vehicle density of 149 motor vehicles per 1000 people, reflecting the government's policies to control vehicle numbers and encourage public transport use. Efficient fleet management is vital in Singapore to navigate operational constraints, such as vehicle quotas and high operational costs, making it essential for corporations to adopt innovative and sustainable fleet solutions to remain competitive.

Environmental Considerations

Singapore ranks 44th out of 180 countries in the Environmental Performance Index (EPI) 2022, with a score of 50.9. This ranking is indicative of Singapore's efforts to balance its urban development with environmental sustainability, addressing challenges such as air quality, water management, and urban greenery. For corporate fleet management, this underscores the importance of adopting eco-friendly practices, such as the use of electric vehicles, optimization of delivery routes, and adherence to strict emissions standards. By prioritizing sustainability, Singapore's corporations can contribute to the nation's vision of a green and livable city, aligning with global environmental goals.

Sustainable Fleet Management

Scopes Data - Electrification Recommendation Rank Icon

Electrification Recommendation Rank

Singapore
's Category

Rank B : Moderate Emission, Highly Favorable for EVs

These countries are moderate emission regions with a highly favorable environment for EVs. Many have already begun adopting BEVs, and increasing BEV use is feasible due to heightened awareness. Transitioning to BEVs reduces CO2 emissions by 50%-75%, and considering the integration of renewable electricity is recommended.

Same Category Countries

Germany, Ireland, Israel, Netherlands, Singapore

Info:

The Electrification Recommendation is derived from two aspects: each country's EV Readiness assessment (based on factors such as Electric Vehicle market share, environmental consciousness, GDP, etc.), and the Electricity Emission Factor (EF). Even if a country has a low Electricity EF, enabling CO2e emissions reduction through transitioning to BEVs, the adoption of BEVs could be challenging if the country lacks adequate infrastructure or faces financial constraints.

Since every company operates in a unique environment, this recommendation might not apply in all cases. However, it can be useful for setting a general direction.

Scopes Data - CO2e From Electricity Icon

Electricity EF Category

Singapore
's Electricity EF

0.408

CO2e kg/kWh

Ref:

Singapore Energy Market Authority (EMA) in 2020

Singapore
's Category

Rank 2 : Moderate Emission Countries (0.25 - 0.50 kg/kWh)

Info:

Countries with high Electricity EF have less benefit for electrification

  • Rank 1: 0.00 – 0.25 kg/kWh (About 0 – 38 CO2e g/km)
  • Rank 2: 0.25 – 0.50 kg/kWh (About 38 – 76 CO2e g/km)
  • Rank 3: 0.50 – 0.75 kg/kWh (About 76 – 113 CO2e g/km)
  • Rank 4: 0.75 – 1.00 kg/kWh (About 113 – 151 CO2e g/km)
  • Rank 5: More than1.00 kg/kWh (About more than 151 CO2e g/km)
Scopes Data - EV Readiness Icon

EV Readiness Category

Singapore
's Category

Rank 1 : Highly Favorable Environment for EVs

Market Share information
Scopes Data - BEV Icon
2022 BEV

11.7

%

2023 BEV

18.1

%

Scopes Data - HEV Icon
2022 HEV

37.6

%

2023 HEV

45.9

%

Scopes Data - Non-ICE Icon
2022 Non-ICE

50.7

%

2023 Non-ICE

64.8

%

HEV: Only Full Hybrid Vehicles (Does not include
Mild Hybrid Vehicles)

Non-ICE: Total of BEV (Battery Electric Vehicles), PHEV (Plug-in Hybrid Electric Vehicles), HEV (Hybrid Electric Vehicles), and MHEV (Mild Hybrid Electric Vehicles)

2022 EPI Results
Rank

44

/180

Score

50.9

2022 EPI Results : Environmental Performance Index(EPI) provides a quantitative basis for comparing, analyzing, and understanding environmental performance for 180 countries.

Ref:Wolf, M. J., Emerson, J. W., Esty, D. C., de Sherbinin, A., Wendling, Z. A., et al. (2022). 2022 Environmental Performance Index. New Haven, CT: Yale Center for Environmental Law & Policy. epi.yale.edu

Introduction to Sustainable Fleet Management and Electrification Efforts

Singapore is spearheading sustainable fleet management and electrification with a strategic approach aimed at significantly reducing vehicular emissions. As a nation characterized by its highly favorable environment for electric vehicles (EVs), Singapore’s initiatives are aligned with its ambitious Green Plan 2030. This plan encompasses eliminating petrol and diesel vehicles by 2040 and fostering the widespread adoption of eco-friendly alternatives. The country’s commitment to electrification is further evidenced by the rapid increase in EV registrations, making electric mobility not just a policy goal but a rapidly unfolding reality. Through government incentives and expanding charging infrastructure, Singapore aims to transform its transportation landscape into a cleaner, more sustainable system, setting a robust framework for corporate fleets to follow suit.

Current Vehicle Landscape: Preferences and Powertrain Segments

In Singapore, the vehicle landscape is evolving, reflecting a growing preference for electric and hybrid vehicles among traditional petrol and diesel options. The country's car market is distinguished by a significant representation of Hybrid Electric Vehicles (HEVs), Battery Electric Vehicles (BEVs), and Internal Combustion Engine (ICE) vehicles. Notably, models like the Toyota Corolla span both ICE and hybrid versions, illustrating the diverse options available to consumers. The SUV compact and C-segment are particularly popular, with vehicles such as the Hyundai IONIQ 5, BYD Auto Yuan PLUS, and Tesla Model 3 leading the charge towards electrification. The increasing prevalence of BEVs and HEVs, underscored by a market share that has seen substantial growth, reflects Singapore's commitment to reducing its carbon footprint through cleaner transportation options. This shift is supported by a conducive policy environment and a public inclined towards sustainability, marking a significant step towards a greener future.

Singapore

Grid.js Table

HEV: Only Full Hybrid Vehicles (Does not include
Mild Hybrid Vehicles)

Non-ICE: Total of BEV (Battery Electric Vehicles), PHEV (Plug-in Hybrid Electric Vehicles), HEV (Hybrid Electric Vehicles), and MHEV (Mild Hybrid Electric Vehicles)

Electric Vehicle Market Overview and Trends

Singapore’s electric vehicle (EV) market is witnessing remarkable growth, underpinned by supportive government policies and a societal shift towards environmental consciousness. In 2023, EV registrations surged by 50.5% from the previous year, with EVs accounting for 18.1% of all car registrations. This growth is largely attributed to the incentives provided under the Singapore Green Plan 2030 and the expansion of the charging infrastructure, aiming for 60,000 charging points by 2030. Chinese carmaker BYD leads the market, evidencing the diversity and competitiveness within the EV space. This upward trend in EV adoption showcases Singapore's dedication to fostering a sustainable transportation ecosystem, making it an exemplar in the global push for electrification. The government's target to phase out ICE vehicles by 2040 further fuels this momentum, positioning Singapore as a leader in the transition towards clean mobility.

Energy Context: Electricity Emission Factors and Implications for Electrification

Singapore’s moderate electricity emission factor of 0.408 kg CO2e/kWh signifies a balanced energy mix, incorporating a substantial proportion of natural gas alongside efforts to integrate renewable energy sources. This context presents a favorable scenario for vehicle electrification, where switching from ICE to BEV vehicles could reduce CO2e emissions by approximately 50% to 75%. The nation's energy policy, focusing on sustainability and efficiency, enhances the environmental benefits of adopting electric vehicles. As Singapore continues to invest in renewable energy, the potential for further emission reductions increases, making electrification an increasingly impactful strategy for mitigating climate change and advancing towards a more sustainable energy future.

Challenges and Opportunities in EV Adoption

The trajectory of EV adoption in Singapore navigates through a landscape of challenges and opportunities. Key challenges include the high upfront cost of EVs and the need for more extensive charging infrastructure to accommodate the growing fleet of electric vehicles. Despite these hurdles, Singapore’s strategic initiatives offer substantial opportunities to accelerate the transition to electric mobility. The government’s provision of incentives for EV purchases, coupled with the ambitious expansion of the charging network, underscores a strong commitment to overcoming barriers to EV adoption. Moreover, Singapore’s status as a highly urbanized and technologically advanced city-state positions it uniquely to integrate smart technologies and innovative solutions in managing and optimizing the use of EVs. The emphasis on sustainability within the corporate sector and among the populace further amplifies the potential for widespread EV acceptance. Addressing these challenges with targeted policies and investments, Singapore stands on the cusp of transforming its transportation landscape into a model of sustainability and innovation.

Additional Insights: Shaping the Future of Transportation

Singapore's strategic efforts in fleet electrification and sustainable transportation are setting new benchmarks for urban mobility. By focusing on electric vehicles as a cornerstone of its Green Plan 2030, Singapore is not only reducing its environmental footprint but also enhancing the quality of urban life through cleaner air and quieter streets. The country's comprehensive approach, from incentivizing EV purchases to expanding the charging infrastructure, reflects a deep understanding of the ecosystem required to support sustainable mobility. As Singapore continues to push the boundaries of innovation in transportation, its journey provides valuable lessons for other nations aiming to transition to a greener, more sustainable future.

Country Case Study

The "Base Fleet" percentage is set according to the sales ratio of each powertrain in Singapore for the year 2023. (For countries where sales ratios cannot be obtained, it is assumed all are ICE vehicles.) The "Recommended Fleet" is designed to be realistic (based on a rank determined by the Electricity Emission Factor Category and EV Readiness Category, deciding a practical range) and efficient in reducing CO2e emissions. It is not expected that the entire fleet will switch to this mix at once but rather after one or two renewal cycles over about 4 to 8 years, considering the usual fleet renewal period is around 4 years. This is viewed as a recommendation for the fleet composition in 4 to 8 years.

The calculation of CO2e emissions is based on a fleet of 100 vehicles traveling an average of 30,000 km per year. Therefore, if your company's fleet size in Singapore is 1,000 vehicles, multiplying the results by 10 will give you an approximate value. For fuel, it is assumed all vehicles use petrol (2345.02 CO2e g/L), and for electricity, the average emission factor of Singapore is used. For PHEVs, it is calculated assuming 50% electricity usage and 50% fuel usage.

Analysis of Fleet Transition from Current State to Sustainable Future

This refers to the average CO2e emissions per kilometer calculated based on the actual energy (Fuel and Electricity) used. It also takes into account the size of the vehicles used in Singapore's fleet.

Scopes Data - ICE Icon

ICE

(CO2e g/km)

Scopes Data - HEV Icon

HEV

(CO2e g/km)

Scopes Data - PHEV Icon

PHEV

(CO2e g/km)

Scopes Data - BEV Icon

BEV

(CO2e g/km)

ICE

HEV

PHEV

BEV

Singapore's fleet transition strategy vividly illustrates the country's proactive stance on reducing vehicular emissions and promoting sustainable transportation. Initially, the fleet composition heavily favored ICE vehicles, numbering 49. This setup is on the cusp of transformation, with the planned reduction of ICE vehicles to 6, a move poised to drastically lower the carbon footprint of Singapore's corporate fleets. The introduction and increase of HEVs from 38 to 45, PHEVs from 1 to 3, and a significant boost in BEVs from 12 to 47, signal a robust commitment to electrification.

This transition is underpinned by Singapore’s favorable electricity emission factor and a highly supportive environment for EVs, characterized by extensive infrastructure and government incentives. The shift not only reflects the technological readiness but also the societal and corporate willingness to adopt cleaner, more efficient transportation modes. The increased representation of BEVs in the fleet, supported by a substantial charging network and incentives for EV purchases, is indicative of Singapore's strategic direction towards achieving its Green Plan objectives, including the elimination of petrol and diesel vehicles by 2040.

Analysis of CO2 Emission Reductions Through Fleet Transition

CO2e From Fuel  (Scope 1)

CO2e From Electricity (Scope 2)

Base Fleet Mix Case
Reasonable Recommended Fleet Mix Case

The transition towards a more sustainable vehicle fleet in Singapore promises significant CO2 emission reductions, aligning with both national and global environmental objectives. The initial fleet configuration, with a heavier reliance on ICE vehicles, accounted for 207 tons of CO2 emissions. The strategic fleet transition plan markedly reduces this figure, with ICE emissions projected to drop to 25 tons, illustrating the potential environmental benefits of reducing reliance on fossil fuels.

The augmentation of HEVs, PHEVs, and notably, BEVs in the fleet composition plays a crucial role in this reduction. The anticipated CO2 emissions from HEVs are set to increase slightly to 142 tons, reflecting their greater prevalence in the fleet. Meanwhile, PHEVs will see a modest rise in emissions to 9 tons, attributable to their increased numbers. However, the most significant shift comes from the electrified segment, with BEVs’ CO2 emissions projected to rise to 91 tons, a reflection of their increased utility and the cleaner electricity grid in Singapore.

This transition, moving from a combined total of 353 tons of CO2 emissions in the base case to 267 tons in the recommended mix, underscores the effectiveness of Singapore's approach to fleet electrification in reducing the overall carbon footprint. It highlights the importance of strategic fleet composition adjustments, leveraging the country's moderate electricity emission factor and robust EV infrastructure to achieve notable environmental benefits.

Comparative Analysis of CO2e Emissions Across Fleet Scenarios

CO2e From Fuel  (Scope 1)

CO2e From Electricity (Scope 2)

Singapore’s strategic fleet transition presents a compelling narrative in the broader context of CO2e emission reductions across various electrification scenarios. The base fleet mix, characterized by a dominant presence of ICE vehicles, set a CO2e emission benchmark of 353 tons. The move towards a recommended fleet mix, embracing a diverse array of powertrains, is projected to reduce total CO2e emissions to 267 tons, showcasing the tangible benefits of integrating HEVs, PHEVs, and especially BEVs into the fleet.

Exploring different scenarios highlights the impact of varying degrees of electrification on CO2e emissions. An all-ICE fleet scenario, representative of minimal change, would lead to 422 tons of CO2e emissions, underscoring the urgency for transition. Conversely, an all-HEV fleet scenario indicates a reduction to 317 tons, reflecting the intermediate benefits of hybrid technology. The introduction of PHEVs offers further reductions, with an all-PHEV fleet scenario projecting 308 tons of CO2e emissions, balancing fuel and electric power advantages.

The scenarios involving BEVs illustrate the profound impact of full electrification, especially when coupled with renewable energy integration. Shifting to an all-BEV fleet, even with the current electricity emission factor, projects CO2e emissions at 193 tons, with potential reductions to as low as 48 tons with 75% renewable electricity incorporation. These scenarios underscore Singapore’s strategic advantage in leveraging its favorable environment for EVs, existing infrastructure, and policy support to achieve substantial CO2e emission reductions, paving the way for a greener, more sustainable transportation future.

https://scopesdata.com/sustainability-country-information/singapore-2023

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