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Eng. Fahad HarebDirector of Air quality Department

9-Nov-2015

Incentives Towards Environmentally Friendly Vehicles

Contents

• Why Incentivize

• International Incentives Implemented

• International Achievements through Incentives

• Why Implement Incentives in the UAE

• MOEW vision on supporting Environmentally Friendly Vehicles

• Incentives initially accepted to facilitate

Support the Change!

Improve Air Quality: Vehicle Emissions include pollutants that are deposited wherever an internal combustion engine goes. Depositing it deep within Cities alongside pedestrian walkways, homes, schools, and work where you spend most of your time.

Mitigate Impacts to Human Health: Vehicle Emissions are Environmental Air pollutants, which are known to have a negative effect on human, and environmental health. The cost for countries to mitigate these health and environmental affects is in the billions from loss of life, work hours, work days etc..

Carbon Footprint Reduction: With Global Warming becoming a global concern governments are posting targets to reduce levels, many countries applying costs relative to amounts of CO2 emitted.

Reduce Dependency on Fossil Fuel: Many countries do not have natural fossil fuel reservoirs, thus rely heavily on importing it. Finding an Alternative source of energy to power the vehicle transport industry is a step towards reducing this dependency, thus alternatively imported fuels can be used more productively and efficiently for by product processing, material production, and exporting of those by products.

Increase Fossil Fuel Exports: Those countries with reservoirs are also keen to look for alternatives in their own countries as this will allow them to export their fossil fuels, selling them to international markets at higher rates.

Other Benefits to having electric/hybrid vehicles:Batteries in the vehicles can be used to support a Smart Grid NetworkNew business opportunities to private sectors, more jobs etc..

Why Government support?

EU OEM Fleet Emission Targets

Governments see the potential advantages and benefits, and they have the tools to stimulate the changes needed.

Providing incentives towards environmentally friendly vehicles, is almost expected by the public, this is clear throughout the world where we have seen several national and local governments provide some form of support mainly as a financial incentive for consumers to purchase such vehicles, and it is working.

Innovations generally first enter the market in low volumes and at a significant cost premium, the initial high costs need to be offset by a positive policy framework to support sales and eventually the increased sales volumes, improved technology / new technologies will bring down the costs to competitive levels.

Electric mobility will make an important contribution towards ensuring sustainable mobility. The incentives mainly consist of tax reductions, exemptions, bonus payments, premiums, and other benefits for the buyers of electric vehicles.

Why Government Incentives?

Governments Incentives

F

Financial support:

• Incentives of up to 25,000 dirhams when buying an environmentally friendly vehicle

• Incentives of up to 15,000 dirhams when you swap your ICE for an environmentally friendly vehicle

• Exempt Fleets from taxes ( between 1,000 - AED 25,000)

• Free registration of the vehicle

Other Incentives:

• Free public parking fees for residents ( two hours for tourists )

• Downtown parking slot

• Use of priority lanes ( under study )

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France

Financial support:• Exemption on Taxes and VAT• Exemption on Import taxes• Exemption on Annual road taxes

Other Incentives:• Free Public Parking • Tolls exemption• Use of bus and taxi lanes• Support to Municipalities to build up charging Infrastructure

Norway

Financial support:• Federal exemptions up to 30,000 dirhams• Exemption of Emission testing• License Fee Reductions• Free Home Charger

Other Incentives:• Free public parking • Free charging stations• Use of Carpool lanes• Free Public Charging

USA

Financial support:• 8,500 Dhs for cars • 1,750 Dhs for two wheelers.

Other Incentives:• Delhi, Rajasthan, Uttarakhand and Lakshadweep don’t levy VAT• Chandigarh, Madhya Pradesh, Kerala, Gujarat & West Bengal offer

partial rebate on VAT• Delhi also provides a 15% subsidy of the base price of select electric

cars, like REVA. It also exempts such cars from road tax and registration fees.

India

Sales Achievements

Environmentally Friendly Vehicle Incentives for the United Arab of Emirates

The Drivers to the Change

1. The UAE Vision’s National Agenda 2021 Air Quality Target

2. The UAE’s Green Economy, Green Growth Initiative for Sustainable Development Production and use of renewable energy Encourage investments in green products raise the efficiency of housing

and buildings environmentally Environment friendly transportation or the so-called sustainable transport Means for dealing with the effects of climate change through policies and

programs designed to reduce carbon emissions Rationalizing the use of water resources, electricity, and natural resources

as well as projects to recycle waste generated Development and promotion of green technology, carbon capture and

conversion of waste into energy.

ESMA to identify; What an Environmentally Friendly Car is

BEV

?

ESMA’s Introduction of a Vehicle Fuel Efficiency label to Increase Consumer Awareness

MOEW studying various policies to Implement

Under the National Agenda 2021 KPI aimed at improving the UAE’s Air Quality, The Ministry of Environment and Water has been looking at various sectors in parallel to enable a multi facet approach to improve the UAE’s Air Quality to achieve and sustain WHO air quality guideline levels.

One of those include a Ministerial Cabinet Decree to be drafted by the MOEW together with the local authorities to encourage the use of Environmentally friendly vehicles.

The Decree is currently being drafted together with the support of and in collaboration with Ajman Municipality, Sharjah Municipality, The Ministry of Interior, the Federal Customs Authority as well as a couple of and Transport Authorities.

The concept of “Polluter Pays” is the basis of the discussions, and one that is being welcomed by all authorities.

MOEW vision on supporting Environmentally Friendly Vehicles in the UAE

Fuel Efficiency Label

Polluter Pays Principle on

Purchase

Encourage Banks to provide A Green

Vehicle Finance Plan

Allows E and W Authorities to provide privileged rates

on 2 Way Meters and installation of renewable

energy devices

Initial Registration and annual

Registration Fee Dependent on rating

Road Tolls dependent on

rating

Free parking in Government Public

Areas

Preferential parking spots for locating

charging stations in Private Areas

Import Tax exemption or Reduction on Vehicles

and related parts

Environmentally Friendly Vehicle

Identification Label

Environmentally Friendly Vehicle Fund

Thank You For Your Attention