Time to introduce a cash-for-clunkers policy

As Malaysia aims to accelerate its decarbonisation efforts through tax waivers on electric vehicles, it is crucial to address a submerged issue hindering the energy transition.

Ageing, carbon-emitting vehicles that exceed their original design parameters continue to put the brakes on the country’s efforts towards “zero carbon” emissions.

It is essential for the government to introduce a limited-by-time fund to subsidise a cash-for-clunkers policy that incentivises the removal of these carbon dinosaurs from the road, thus improving air quality and promoting the transition to cleaner modes of transport.

The presence of old cars and trucks belching out black clouds of exhaust undermines the progress made by Malaysia in its decarbonisation journey.

While tax waivers have accelerated sales of the 20 plus models of electric cars now available, it is equally important to focus on retiring vehicles that are environmental criminals without penalising owners who come from an age where global warming was not on the radar.

A cash-for-clunkers policy represents a potential solution by providing an incentive for owners of extra-polluting old vehicles to replace them with more environmentally friendly alternatives.

By offering RM4,000 transferable vouchers to owners or their representatives who relinquish these vehicles to licensed scrap dealers or used car dealerships, the government can facilitate their removal from the road.

These vouchers could be used as partial payment for newer, second-hand cars, providing an affordable option for those transitioning away from their old vehicles.

This approach has been successfully implemented in other countries, such as the United States, with notable outcomes.

To ensure the effectiveness of the cash-for-clunkers policy, a proper budget allocation is essential after considering the number of eligible vehicles on the road.

Once funds are depleted, the government can evaluate whether the project’s goals have been achieved and decide on its renewal during the subsequent budget cycle.

Through careful budget allocation and periodic evaluation, the government can ensure the success of this initiative, ultimately accelerating Malaysia’s energy transition and improving air quality for all.

The suggestions for an End-of-Life policy have been made several times by various parties. Proton once had such a campaign, limited to its own products. It is time for the government to implement this crucial missing link in Malaysia’s energy transition towards a greener future. - FMT

The writer can be contacted at yamin.vong@gmail.com

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.