P8.4 trillion investments seen with accelerated EV rollout

MANILA, Philippines — The Department of Energy (DOE) expects the country to attract P8.4 trillion worth of investments through a faster and broader commercial scale rollout of electric vehicles over the next two decades.

“As we look at the future, it is important to recognize the potential of the EV industry in terms of the benefits it would deliver to the environment, public health, and our economy,” Energy Secretary Raphael Lotilla said.

“It is expected that the rollout of the EV fleet under our clean energy scenario will bring in an investment of around P8.4 trillion by 2040,” he said.

Aside from the investments to be generated, Lotilla said carbon dioxide avoidance can be achieved by as much as 1.96 billion tons of CO2 equivalent by 2040 under the clean energy scenario.

“By transitioning to EVs, we can improve air quality, reduce our reliance on fossil fuels, and help mitigate the effects of climate change,” he said.

The DOE is pushing for an increase in the rollout of EVs in the country to 10 percent from the original five percent mandated under the Electric Vehicle Industry Act (EVIDA) or Republic Act 11697.

The agency is likewise batting for a faster and broader commercial scale rollout of EVs in the country once the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI) is approved, as the 10 percent EV rollout under the clean energy scenario will be increased to 50 percent by 2040.

“The CREVI sets a minimum 10 percent target EV share for all sectors, excluding EV trucks, by 2040 under the business as usual scenario. On the other hand, the clean energy scenario, or the CES sets a more ambitious target with the mandated re-fleeting of at least 50 percent of all fleets with EVs by 2040,” Lotilla said.

“These shall be achieved through various initiatives such as the phased approach to improve EV utilization, promoting EV manufacturing, EV research and development, human resource development, and improving relevant policies and credit programs,” he said.

Lotilla said CREVI would be updated annually to ensure that EV trends and technologies are captured.

The CREVI targets the rollout of around 2.45 million EVs while 65,000 EV charging stations will be installed nationwide under the clean energy scenario.

For the medium term or from 2029 to 2034, CREVI is looking at an additional 1.85 million EVs and 42,000 EV charging stations.