SEN. Sherwin T. Gatchalian goaded concerned authorities to urgently come up with “a sound policy for more sustainable transport system” in a post Covid-world.
“As the country moves toward the promotion of sustainable transportation in a post-Covid world,” Gatchalian, chairman of the Senate Energy Committee, emphasized the “urgency to lay down a sound policy and regulatory framework for the adoption of electric vehicles [EVs] and the sustainability of the e-vehicle ecosystem.”
In a statement over the weekend, Gatchalian affirmed the need for the Duterte administration to “be ready with its policies and infrastructure before the e-vehicle becomes popular in the country.”
Citing 2019 data of the Bloomberg New Energy Finance, the senator foresees the cost of EVs could “reach parity with traditional ICE [internal combustion engine] vehicles by year 2024 as batteries become much cheaper.”
“We have to make sure that we have the right policies, the right infrastructure, and the right incentives so we will be ready to roll out the EVs in a big way,” Gatchalian stressed, as he asked Congress to frontload consideration of enabling legislation embodied in Senate Bill (SB) 1382 anticipating proliferation of EVs as alternative in the wake surging gas prices.”
Gatchalian earlier filed SB 1382, to be known as the Electric Vehicles and Charging Station Act, prodding Congress to facilitate enactment of the enabling legislation crafted to pave the way for the transition to new technologies, projected to “generate jobs, and attract investments to grow globally competitive.”
“The bill is now up for interpellation in the Senate and once the bill becomes a law and if implemented correctly,” Gatchalian said, adding he is confident that “the country’s dependence on oil will be greatly reduced and that the country will save P297.92 billion of annual oil importation.”
He adds that SB 1382 provides fiscal and non-fiscal incentives for the importation, utilization, and manufacture of EVs. This includes a nine-year exemption from value-added tax, customs duties, and discounts on the motor vehicle user’s charge as well as expedited registration procedures for EV users.
Citing the 2018 Philippine Statistical Yearbook, he noted the country imports 96.84 percent of crude oil. At least 74 percent of the country’s crude oil import comes from the Middle East, making the country more vulnerable to supply and pricing disruptions.
At the same time, Gatchalian said he is poised to sponsor a remedial legislation to “further promote and adopt electric vehicles [EV] in the country,” which he projects would help reduce Philippine greenhouse gas (GHG) emissions and foster greater energy independence. He pointed out that the transport sector is the second biggest GHG-contributor in the country with 31.6 percent, Gatchalian said citing 2017 Department of Energy data.
“If you want to reduce the GHG in the country, you hit the transport sector. If you want to increase the energy security in the country, you hit the transport sector. That’s why our rationale for promoting the EVs in the country is to improve the air quality, improve environmental conditions, and promote energy security,” the senator stressed.
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