Singapore goes ‘heavy’ on electrification

Singapore is stepping up attempts to electrify its economy by increasing electric heavy vehicle usage, including electric buses, trucks and marine craft, and developing its charging infrastructure.

According to Singapore’s Land Transport Authority, there are around 52,000 heavy vehicles in Singapore, which contribute about 31% of land transport emissions. However, in 2024, only 0.9% of newly registered heavy goods vehicles and 12.6% of newly registered buses were electric^[1].

Singapore recently committed to reducing its greenhouse gas emissions to between 45 million and 50 million tonnes (Mt) by 2035, down from a target of around 60Mt in 2030. Singapore’s total greenhouse gas emissions in 2022 were 58.59Mt^[2]. The new climate target for 2035 puts Singapore on track to reach its 2050 net-zero target.

At Lombard Odier, we expect the world to move from 20% economy-wide electrification to 70%, as entire sectors transition from fossil fuels to renewably generated electricity^[3]. The electric heavy vehicle market should become an increasing contributor to this trend, one that is becoming more financially viable for companies with the cost of EV battery production having fallen 90% since 2010^[4].

Read about regulations for autonomous taxis and vehicles in APAC here.

Heavy vehicle emissions

As such, Singapore’s government is offering financial incentives for each new ‘zero tailpipe emissions’ heavy vehicle that is registered, and is expanding the charging network for electric heavy vehicles^[5] as part of the vehicle electrification component of its push to decarbonise. The government is also aiming to more than double the number of electric buses by 2027^[6].

Though electric passenger cars receive most public attention in the net-zero debate – because of high-profile consumer companies such as BYD and Tesla – heavy vehicles are, proportionally, responsible for a far higher share of emissions. Rising demand for freight transport means emissions from heavy-duty vehicles have been increasing rapidly since 2000, with trucks accounting for more than 80% of this growth^[7]. Although they represent fewer than 8% of vehicles (excluding two- and three-wheelers), trucks and buses are responsible for more than 35% of direct CO₂ emissions from road transport^[8].

Today, most buses and heavy-duty trucks rely on diesel engines that emit high levels of particulates, nitrogen oxides, and other pollutants that cause chronic disease and premature death – decarbonising transportation will require cleaner engines and fuels and technological advances. Such advances are being made, and it is estimated that electric buses will form 81% of the global bus stock and electric heavy-duty trucks will form 29% of the global fleet by 2050^[9].

At Lombard Odier, we expect the world to move from 20% economy-wide electrification to 70%, as entire sectors transition from fossil fuels to renewably generated electricity

Singapore presents a unique testing ground

Electric heavy vehicles are seeing strong growth across the region. In China, the largest manufacturer of electric heavy goods vehicles and buses globally, sales of zero-emission trucks and buses reached a historic high in 2024, according to the ICCT^[10]. Other APAC governments are also looking to increase the share of such vehicles on their roads, and Singapore could provide a unique testing ground.

Electric buses, for example, have strong potential in Singapore, because of its size and urban concentration. City buses are good candidates for electrification because of their largely fixed driving patterns and lower daily travel distances – as such, they have spearheaded growth in electric bus sales^[11].

These features should, in theory, put less pressure on Singapore’s charging infrastructure compared to other markets – this is important because one of the main concerns across the EV landscape is the availability of charging infrastructure. As such, Singapore’s “Electric Heavy Vehicle Charger Grant” will co-fund up to 50% of electric heavy vehicle charger installation costs, capped at SGD (Singapore dollars) 30,000 per charger. The grant will apply to the first 500 chargers, with a limit of up to three chargers per site^[12].

We believe that an increasing focus on heavy vehicles (including buses and marine vehicles) is important if carbon emissions are to reduce significantly. Technological advances, such as charging infrastructure and battery technology, must keep improving, but governments should also continue to facilitate uptake

Marine

Meanwhile, the government has set a target that all new harbour craft should be fully electric or compatible with net-zero fuels by 2030, a significant move considering Singapore is the second biggest container port globally^[13].

Earlier this year, the Coastal Sustainability Alliance (CSA) launched its first fully electric supply boat and laid the keel for its first fully electric tug^[14]. CSA claims the supply boat can achieve 60% energy savings over a conventional vehicle making multiple trips, providing significant cost savings and carbon emissions reduction for the industry.

The government also recently introduced new industry standards for electric harbour craft infrastructure^[15], including measures to protect personnel and property from electrical and mechanical hazards during the installation and operation of charging systems. The new standards also establish the technical requirements to promote interoperability.

These measures should help build confidence in electric marine vehicles, promoting adoption and dovetailing with existing regulations governing EV adoption and related charging infrastructure.

At Lombard Odier, we believe that an increasing focus on heavy vehicles (including buses and marine vehicles) is important if carbon emissions are to reduce significantly. Technological advances, such as charging infrastructure and battery technology, must keep improving, but governments should also continue to facilitate uptake. As a trade hub and port of global importance, Singapore stands to benefit greatly from the adoption of electric heavy vehicles: other APAC countries will no doubt be watching its progress closely.

Discover our conviction about the transition to net zero here.