Years ago, Singapore introduced a system whereby one needed to buy a “Certificate of Entitlement” (COE) before being allowed to own and drive a car. The price for a COE is determined by demand and especially since COVID the prices have spiked – to now $106.000. If you include the purchase price and taxes as well, owning and driving a Hybrid Toyota Camry will cost you $183.000 compared to $29.000 in the US.

When reading this article the first question that came to my mind was: how much regulatory framework do we need in general? And in particular when it comes to driving the decarbonisation of our societies? I know that it`s comparing Apples with pears (to some extent), but it reminded me of the discussion in Germany about replacing fossil fuel heating systems with heatpumps and the latest subsidies for residential “green packages” (wallbox, storage, solar & heatpump).

We work with a lot of young, innovative companies who benefit from government grants,  accelerator programs and new legal requirements before they enter the “free market” so clearly in many cases it works.  

How much of this necessary transition can we leave to the “free market” and how much do we need to regulate it? Let us know your view on this topic!