As the world tries to combat climate change and global warming, reducing carbon emissions in all sectors of society is essential in reversing their adverse effects. Responsible for more than a quarter of greenhouse gases in the atmosphere, transportation and logistics is driving towards decarbonization primarily through the use of electric vehicles (EVs).
The transition to these zero-emission automotives decreases the world’s carbon footprint significantly and paves the way to a greener, cleaner, and more sustainable future for the next generation. Due to growing awareness and concern for climate change, more and more people are switching to greener cars.
In the Philippines, the EV market is starting to become competitive as sales skyrocket. According to the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), more than 10,000 EVs were sold last year, a tenfold increase from just over 1,000 in 2022.
Among these 10,000 models bought, hybrid electric vehicles (HEVs) accounted for most of the sales volume with 9,293 units purchased, while battery electric vehicles and plug-in hybrid electric vehicles (PHEVs) taking up only 462 and 106 units purchased, respectively.
With this growing preference for zero-emission automotive, President Ferdinand R. Marcos, Jr. directed the Department of Energy (DoE) and other relevant government agencies to help in the growth of the electric vehicle industry.
Focused on the integration of e-vehicles into the public transportation sector, the government has planned through the Comprehensive Roadmap for Electric Vehicle Industry (CREVI) for EVs to compose at least 50% of vehicles on the country’s roads by 2040.
In this regard, Mr. Marcos, as the chair of the National Economic and Development Authority (NEDA) Board, expanded the scope of Executive Order (EO) No. 12 on May 15. Originally, the order reduced the tariffs imposed on fully electric vehicles from 5% to 30% to zero until 2028.
Due to the expansion of the EO, all eco-friendly vehicles including PHEVs, HEVs, e-motorcycles, and e-bikes are tariff-free. The decision aims to cut the prices of these types of vehicles as well as encourage Filipinos and industries in the country to drive greener.
Taking the lead in the switch to EVs, the President ordered concerned government agencies to acquire a significant number of EVs for government use. Given a thumbs up by the Department of Budget and Management and the DoE, Mr. Marcos wants 10% of the government fleet to be EVs with corresponding charging stations for those vehicles.
Following these developments, it was recently announced that a modern EV station complete with charging terminals and a retail center will soon rise in New Clark City. Double 11 Properties Corp., in partnership with the Bases Conversion and Development Authority (BCDA), intends to build the development which is expected to house over 20 retail stores and offices, serving an estimated 200,000 motorists annually and creating about 500 jobs.
Philippine logistics company Mober’s expanded EV fleet
Logistics firms in the country are also integrating more EVs into their fleet. Logistics company Mober expanded its EV fleet to 60 vehicles this year through funding from conglomerate RT Heptagon Holdings (RTHH). The move aims to fast-track the integration of electric vehicles (EVs) into their fleet and to become one of the leaders in green logistics in the Philippines.
On the global stage, almost 14 million new EVs were sold globally in 2023 bringing the total number of registered green automotives on the roads to more than 40 million according to the International Energy Agency’s (IEA) Global EV Outlook 2024. These purchases equal 18% of all vehicles purchased last year.
Additionally, the IEA predicts that market shares of EVs in some of the world’s biggest economies could reach up to 45% in China, 25% in Europe, and over 11% in the United States in 2024. In the Southeast Asian region, EV sales grew as well specifically in Vietnam and Thailand where electric car purchases account for 15% and 10% of all automobiles sold, respectively. Overall, these regions comprise around 65% of all car sales worldwide.
Furthermore, data from the agency indicates that the EV market could keep growing this year and reach more than 17 million units sold, which will be equivalent to one in five cars sold globally. By 2035, the IEA noted that “every other car sold globally in 2035 is set to be electric” based on today’s energy, climate, and industrial policy settings.
Meanwhile, Bloomberg mentioned several global EV trends that could be game-changers in the market for the coming years. The media company said that battery technology in electric vehicles is rapidly improving, leading to longer ranges, faster charging times, and more sustainable energy storage. In addition, more and more charging stations are becoming accessible to the public with over 4 million public charging points installed around the world.
These trends are expected by Bloomberg to persist throughout the year and set the stage for 2025 and 2026 when brand new cheaper models are set to hit the global market.
While the effects are still gradual and barely felt, these initiatives, investments, and public interest in electric vehicles are beginning to show promising results environmentally. A study published in the British weekly scientific journal Nature shows that EVs do indeed reduce carbon emissions. The study indicates that the average monthly reduction rate of greenhouse gases is 9.47% with reductions from each vehicle ranging from 8.72 kg to 85.71 kg of carbon monthly.
However, electric cars, despite being climate-friendly, still take a toll on the environment. In a report released by the Pulitzer Center, the demand for nickel, which is used to make batteries for EVs, is skyrocketing and is expected to grow by 2030 to at least 10 times what it is now. This has led to expanded mines which come at the expense of the world’s few remaining rainforests.
The transition to EVs represents an important step in combatting climate change and improving air quality if done responsibly. With the Philippines and the rest of the world rapidly switching to eco-friendly vehicles, the drive towards a greener future has been revved up through electric vehicles. — Jomarc Angelo M. Corpuz
