Subsidies lift for new diesels

The government will increase subsidies to encourage owners of old heavily polluting commercial diesel vehicles to replace them with new models amid a poor response, a government source said.

Tuesday, September 24, 2013

The government will increase subsidies to encourage owners of old heavily polluting commercial diesel vehicles to replace them with new models amid a poor response, a government source said.

Depending on the type of vehicle to be replaced, the government will pay 27 to 33 percent of the cost of the new vehicle – up from the previous 10 to 30 percent.

In his 2013 policy address, Chief Executive Leung Chun-ying proposed setting aside HK$10 billion as subsidies to 80,000 owners of pre-Euro and Euro I to III diesel vehicles to phase them out.

The scheme would reduce the overall emissions of particulates and nitrogen oxides by 80 percent and 30 percent, respectively.

In the original proposal, owners would receive subsidies of 18 to 30 percent of the replacement cost, while those who wanted to junk the old vehicles would get only 10 to 18 percent.

Under the new proposal – to be announced as early as today – all owners of pre-Euro vehicles will get 27 percent of replacement cost, while owners of Euro I, II and III receive 30 to 33 percent.

The new proposal may cost more than HK$10 billion, but the source said the government believes it would be more effective in improving air quality.

Industry representatives welcomed the government’s proposal, saying it will give owners more choice.

KELLY IP