Drive to Sustainability: Paving the Road for Electric Vehicles in the Philippines

It should come as no surprise that the various modes of transportation readily available in the Philippines accounts for a large part of the country’s greenhouse gas emissions and air pollution. Particularly, the sheer volume of private vehicles that traverse the roads not only cause major traffic that can span for hours but also harm the country’s efforts to become more sustainable.

In this light, transitioning to electric vehicles (EVs) has become all the more crucial if the government hopes to reach its environmental targets and stay on course for its commitment to the Paris Agreement of reducing carbon emissions by 75% by 2030. All of this begins with the government passing a law that’s in support of EV usage.

The Philippines is severely lagging behind its other competitors within the region in terms of trade and investment as necessary infrastructures and manufacturing technology for EVs are scarce. According to research published by the Philippine Institute for Development Studies (PIDS), there is a strong potential for growth of the EV industry within the country given the current support it has received from the government and key players.

However, “(There is a) low level of technology utilization in manufacturing and infrastructure,” explained Supervising Research Specialist Maureen D. Rosellon. Additionally, there is a need to prioritize the EV bill that is still pending in Congress to significantly propel the industry forward.

“An EV law will set the national policy and overall framework for regulations related to standards, incentives, infrastructure, and others. It can also signal investors that the industry is a priority sector,” Rosellon added.

In March 2020, Senator Sherwin Gatchalian filed Senate Bill 1382 or the Electric Vehicles and Charging Stations Act. This was recently passed in the Senate last May. The bill also puts a Comprehensive Roadmap on Electric Vehicles (CREV) into the light, which encompasses guidelines for the manufacturing, importation, utilization, and regulation of EVs along with the installation of charging stations across the country.

While this is a massive step towards sustainable mobility, Electric Vehicle Association of the Philippines (EVAP) president Edmund Araga explains that “we would still have to wait for the Congressional version.” He likewise echoes the sentiments of Rosellon that the adoption of more comprehensive technology is required.

“Strong government support is still a question. There are still some lacking support in terms of incentives. Most manufacturers are in the small, medium enterprise (SME) level (and) they have a hard time to compete with a large manufacturer who has adequate capitalization,” Araga argued further.

The value chain of the global EV industry is expected to grow substantially as other nations within the region acquire investments in production. The country could play a significant role in this chain, especially as battery production and transfer of technology partnerships with foreign firms anchor its investment prospects.

Fairly recently, the government has also begun considering adopting EV technology in “low carbon cities” under a Global Environment Facility-7 (GEF-7) project.

Based on the figures reported by the Department of Energy-Energy Utilization Management Bureau (DOE-EUMB), only 11,950 EVs were registered in 2019 accounting for 0.9% of the total registered vehicles in the country. Over the past year, this number went up to 12,965 equating to an increase of 8.5%  according to data from the Land Transportation Office (LTO).

Electric tricycles and other two-wheeled vehicles make up the majority of registered EVs in the country. The Department of Trade and Industry (DTI) hopes to reach 300,000 EVs or 21% of the total vehicles by 2030 and 50% by 2040.

Moreover, the installation of charging infrastructure remains a pressing concern given the country’s high power rates and supply problems that have become common over the past few months. At present, there are only 136 charging stations within the country.

The DOE has since partnered up with the University of the Philippines-Diliman to dive into the viability of using solar for charging stations. “We have an ongoing study with UP Diliman, looking at the potential of fast charging using solar…if we can go 100 percent using fast charging,” affirmed Patrick Aquino, director of DOE-EUMB.

Paving the road for the widespread adoption of EVs in the Philippines has proven to be an arduous task, but it’s a necessary challenge that the country should undertake. EVs are undeniably the future of mobility and laying the foundation for this innovation as early as now is essential.

References: PhilStar, BusinessWorld, The Manila Times, TopGear Philippines