The Heavy Burden of Diesel Fleets
Vehicles in Singapore emit up to 6.4 million tonnes of carbon dioxide (CO₂) annually. For small and medium-sized enterprises (SMEs) dependent on logistics fleets, this means higher operating costs, rising compliance risks, and long-term vulnerability to carbon regulation.
According to the National Climate Change Secretariat, Singapore (NCCS), land transport contributes nearly 15% of Singapore’s total greenhouse gas emissions, and the government has committed to phasing out diesel vehicles entirely by 2040.
Sticking with diesel is no longer just an environmental issue. It’s a financial and operational risk for businesses that need to stay competitive in Singapore’s fast-changing regulatory and energy landscape.
Rising Tariffs and Carbon Costs
Singapore’s energy system is 95% reliant on imported natural gas, according to the Energy Market Authority (EMA). This dependency drives tariff volatility that directly affects operating budgets. For logistics SMEs, every fluctuation in fuel or power prices creates uncertainty in fleet management and squeezes margins.
This is why the government has rolled out a suite of incentives to accelerate the shift. The Electric Vehicle Early Adoption Incentive (EEAI) offers up to S$15,000 in rebates, while the Vehicular Emissions Scheme (VES) provides up to S$25,000 per vehicle—a combined potential saving of S$40,000 per EV.
From Diesel to Data: Turning Fleets Into ESG Assets
What makes the transition even more urgent is reporting. Beginning in 2025, the Singapore Exchange Regulation (SGX RegCo) and the Accounting and Corporate Regulatory Authority (ACRA) will require large companies to disclose emissions, with more disclosures mandated from 2026.
Traditional diesel fleets generate fragmented data that is difficult to consolidate for audits. By contrast, electric vehicles paired with solar charging hubs provide real-time energy and emissions tracking. With integration into tools such as Gprnt.Ai and ESGpedia under the Monetary Authority of Singapore’s (MAS) Project Greenprint, SMEs gain a seamless pathway to standardized ESG reporting.
For tender-driven sectors like logistics, this data is no longer optional—it determines eligibility and competitiveness.
Green Volt’s Solar-Integrated EV Systems
At Green Volt Pte Ltd, we make this transition practical and cost-effective. Our turnkey systems combine:
- Rooftop solar arrays from Energio Solar , ensuring predictable, low-cost clean energy.
- Smart charging from EVOne Charging , optimized for efficiency and fleet readiness.
- Telematics and monitoring, enabling SMEs to track kilometres driven, energy consumed, and carbon savings per vehicle.
This approach helps SMEs slash up to 4 tonnes of CO₂ per vehicle annually, shield against energy price shocks, and generate auditable data for regulators, investors, and customers.
Powering SMEs Beyond Compliance
Singapore’s Building and Construction Authority (BCA) and Economic Development Board (EDB) have already showcased the viability of Positive Energy Buildings like DSV’s RedLion2 logistics hub, which produces 15% more energy than it consumes. The same resilience can now be scaled for SMEs through solar-integrated EV depots.
With diesel vehicles being phased out, SMEs that act now can lock in cost savings, future-proof compliance, and strengthen their ESG credibility.
Lead the Transition with Green Volt
The choice is clear: remain locked into diesel’s rising costs and compliance risks—or turn fleets into energy-smart, data-ready assets.
At Green Volt, we help SMEs in Singapore cut overall vehicle emission of while building resilient, solar-powered logistics hubs. Don’t just transition—lead. Explore Green Volt’s solar logistics solutions here:https://greenvolt.sg
