According to the latest ASEAN State of the Environment Report (2009), “Southeast Asia is one of the world’s most vulnerable regions to climate change impacts such as droughts, floods, typhoons, sea level rise, and heat waves.” The growing impact of climate change has made it crucial for governments and the private sector throughout the ASEAN region to invest in climate change adaptation and mitigation efforts while providing economic opportunities to empower poor and vulnerable sectors.
One big opportunity for the Philippines lies in the Alternative Fuel Vehicle (AFV) sector. According to a report released by international consulting firm Grant Thornton in 2012, “Asia is currently the largest market for hybrids/electrics (56%).” Further: “The trend toward alternative fuels is visible in global sales of hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs), projected to reach 5.4 million vehicles by 2021 (more than 6% of the automotive market), up from 810,000 vehicles in 2010 (approximately 2% of market share).”
The same report states that, “Around a quarter of global companies (24%) have introduced or are considering vehicles that run on alternative fuels for their businesses … Companies in the ASEAN region (31%) were most likely to use or consider alternative-fuel vehicles.”
This regional trend is congruent with the Philippine government’s moves to incentivize the manufacturing and use of AFVs. The Department of Energy’s goal of putting 100,000 electric tricycles on the road by 2017 and the Electric Vehicles Association of the Philippines’ (EVAP) goal of 1 million electric vehicles by 2020 represent key milestones toward dramatically reducing dependence on oil while ensuring that the Philippines leads in the growing electric vehicle manufacturing industry in the Asian region.
Moreover, the integration of the ASEAN Economic Community in 2015 presents a key opportunity for the Philippines to emerge as a leader in this sector and cater to a regional market. This can very well pave the way for more investments, jobs, and livelihood opportunities to reach more Filipinos.
In order to leverage on these potentials, we need stronger policy support to encourage investment in manufacturing facilities, enable technology demonstration and deployment, and provide incentives to promote the adoption of and drive consumer demand for electric, hybrid, and other alternative fuel vehicles.
Thus, in order to bolster the benefits and the marketability of these vehicles, this Act provides non-fiscal incentives to drive consumer demand, including the following:
a. Priority in registration and issuance of plate number;
b. Priority in franchise application;
c. Exemption from Unified Vehicular Volume Reduction Program (UVVRP) or Number-Coding Scheme; and
d. Provision for free parking spaces in new establishments
It is recognized that while the costs of electric and hybrid vehicles are higher compared to those of regular vehicles, these non-fiscal incentives will make the acquisition and conversion of vehicles more attractive to consumers and manufacturers alike.
In the 15th Congress, both the Upper and Lower Houses of Congress passed on Third Reading similar measures entitled, “An Act Providing Incentives For The Manufacture, Assembly, Conversion And Importation Of Electric, Hybrid And Other Alternative Fuel Vehicles, And For Other Purposes.” Clearly, Congress recognizes that the emerging industry of alternative fuel vehicles (AFVs) can significantly contribute to investment generation, job creation, poverty reduction, and climate change mitigation.
In view of the foregoing, the passage and enactment of this bill is earnestly sought.
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