AS the world transitions to a more sustainable and low-carbon future, the widespread adoption of electric vehicles (EVs) plays a crucial role. To expedite the transition to electromobility, governments and policymakers need to implement strategic measures.
Some of the major conclusions of the 1st ASEAN Battery and Electric Vehicles Technology Conference (ABEVTC) outlines five key recommendations from several keynote that will accelerate the uptake of EVs in the region.
Maintain and adapt support for electric cars. While the electric car market matures, direct subsidies should be gradually phased out. Instead, implementing budget-neutral feebate programs can be an effective transition policy. These programs tax inefficient internal combustion engine vehicles and utilize the revenue to subsidize low-emission or EV purchases. Additionally, adopting stringent vehicle efficiency and CO2 standards, similar to leading EV markets, is crucial for promoting EV adoption globally.
Kickstart the transport market. With an increasing number of heavy-duty electric models available, it is essential to facilitate the transition in this sector. Policymakers can stimulate the market by implementing zero-emission vehicle sales mandates, purchase incentives, and CO2 standards. These measures will help accelerate the adoption of electric buses and trucks, making them economically competitive across various applications.
Promote adoption in emerging and developing economies. In emerging and developing economies, prioritizing electrification of two/three-wheelers and urban buses is critical due to their cost competitiveness. Price signals and the availability of charging infrastructure can further enhance the economic case for electrification. Governments should prioritize policies that encourage EV adoption in these vehicle segments.
Expand EV infrastructure, energy storage solutions and smart grids. To ensure the successful integration of EVs into transportation systems, governments should support the deployment of publicly available charging infrastructure as well as battery manufacturing and energy storage. This support should continue until there are sufficient EVs on the road to sustain the charging network. Equitable access to charging stations should be ensured through regulations, fiscal policies, and support mechanisms. Incentives for home charger installations and mandating EV charging readiness in new buildings are crucial steps. Coordinated plans for grid expansion, digital technologies for two-way communication between EVs and grids, and pricing mechanisms are necessary to maximize the potential of EVs as a resource for grid stability.
Ensure secure, resilient, and sustainable EV supply chains. As EV adoption grows, the demand for raw materials required in the production of EV components increases. Governments must encourage sustainable mining practices for key battery metals by leveraging private investment and expediting permitting procedures. Promoting innovation in alternative chemistries that require fewer critical minerals and implementing extensive battery recycling processes can alleviate supply bottlenecks. Incentivizing battery “rightsizing” and the adoption of smaller cars can also reduce the demand for critical metals. Strengthening international cooperation, promoting environmentally and socially sustainable practices, and ensuring traceability of key EV components are essential to secure resilient and sustainable EV supply chains.
