Ex-gratia Payment Scheme for Phasing Out Euro IV Diesel Commercial Vehicles

The Ex-gratia Payment Scheme for Phasing Out Euro IV Diesel Commercial Vehicles (DCVs) in Hong Kong is part of a government initiative launched in October 2020 to improve roadside air quality by progressively phasing out about 40,000 Euro IV diesel commercial vehicles by the end of 2027. The scheme targets goods vehicles, light buses, and non-franchised buses registered as Euro IV DCVs.

Objectives:

• To reduce air pollution by removing older, higher-emission Euro IV diesel commercial vehicles.
• To support the government’s goal of zero vehicular emissions and carbon neutrality before 2050.
• To encourage vehicle owners to switch to cleaner electric vehicles.

Target Beneficiaries:

• Registered owners of eligible Euro IV DCVs, including some vehicles classified as Excluded Vehicles that meet certain emission standards.
• Owners must have vehicles first registered within specified dates and meet eligibility criteria such as valid licensing and scrapping requirements.

Key Features:

• Ex-gratia payments are offered based on vehicle class, age, and body type, with amounts inversely related to vehicle age.
• Vehicles must be scrapped by registered vehicle scrapping companies between 19 October 2020 and their respective registration cancellation deadlines.
• Vehicle registration must be cancelled on or before the specified deadlines.
• Special arrangements allow some Euro V classified vehicles originally designed as Euro IV to participate.
• The scheme includes a list of registered vehicle scrapping companies for owners to choose from.

Application Process:

1. Arrange scrapping of the eligible Euro IV DCV with a registered scrapping company within the scheme period.
2. Notify the Transport Department (TD) of the scrapping and submit the vehicle scrapping certificate.
3. Cancel the vehicle registration at a TD Licensing Office on or before the deadline.
4. Submit the ex-gratia payment application to the TD within three months after registration cancellation, including a photo of the vehicle’s chassis number taken before scrapping.
5. Applications can be submitted via drop-in boxes, post, in person, or email (with original form submission required later for verification).

The government reserves the right to reject applications on grounds related to national security or public interest. The scheme is regulated under the Air Pollution Control (Air Pollutant Emission) (Controlled Vehicles) Regulation, which sets the deadlines and eligibility criteria.

For more details, vehicle owners can refer to official tables specifying registration dates, cancellation deadlines, vehicle classifications, and payment amounts, as well as contact the Environmental Protection Department or Transport Department for enquiries.