ADB Backs EV Growth in the Philippines with $100M

In line with global initiatives to transition to clean technologies, particularly in the adoption of electric vehicles, the Philippine government, under President Rodrigo Duterte’s administration, enacted Republic Act (RA) No. 11697, also known as the “Electric Vehicle Industry Development Act (EVIDA),” and became a law on April 15, 2022.

The NTRC Tax Research Journal highlights that the EVIDA is a significant piece of legislation that will help the country stay globally competitive and at the forefront of electric vehicle (EV) technology and the infrastructure and components that support it. Additionally, it will facilitate local EV production, leading to job creation and attracting new investments.

Philippines EV profile

Data from the NTRC Tax Research Journal indicates that the total number of electric vehicles (EVs) in the Philippines from 2010 to 2021 was 13,934 units. E-bikes and e-motorcycles dominate the EV market in the country, accounting for 91% of all EVs. The remaining vehicles include e-utility vehicles (815 units), e-cars (311 units), and e-sport utility vehicles (43 units), while e-trucks and e-buses have the fewest registrations, with 12 and 10 units, respectively.

As of 2023, global data shows that the number of registered EVs in the Philippines has increased to 16,000, representing less than 0.1% of the total 13 million vehicles on the road. This marks a 50% growth in EV registrations between 2022 and 2023, reflecting rising consumer interest. Additionally, in 2024, vehicle manufacturers sold 467,252 units, representing an 8.7% annual increase in sales. However, the country currently has only 592 EV charging stations.

The slow growth in the nation’s EV sector is due to limited charging infrastructure, high EV prices, and low public awareness.

Philippines EV uptake targets

The country aims to have 6.6 million electric vehicles (EVs) on the road by 2030, seeing this figure as essential to achieving a 50% EV adoption rate by 2040. The government has initiated several measures to reach this goal, including Meralco’s establishment of a 3,500 MW solar and battery farm and a $15 billion renewable energy partnership with UAE-based Masdar. However, further efforts are necessary. Policymakers should enhance financial incentives, streamline regulations, and launch nationwide campaigns to promote the benefits of EVs.

Benefits of transitioning to electric vehicles

Environmental Impact. In Metro Manila, the largest metropolitan area in the Philippines, transportation accounts for 56% of outdoor air pollution. Transitioning to electric vehicles (EVs) can significantly reduce this pollution.

EVs produce no tailpipe emissions and have lifetime carbon emissions that are 54% lower than those of internal combustion engine vehicles. The shift to EVs can help the Philippines achieve its Nationally Determined Contributions (NDCs) and tackle a critical environmental challenge.

Economic Advantages. EVs generally offer lower total ownership costs because their lifetime maintenance costs are 50% less than those of ICE vehicles. Additionally, electricity prices are not as volatile as gasoline prices.

Energy Security. The Philippines relies heavily on the global oil market, with imports accounting for 90% of its oil supply. To enhance energy security, the country should focus on reducing its dependence on oil imports and increasing investments in renewable energy sources, such as solar and geothermal, which are naturally abundant in the region.

ADB’s US$100 million finance package to boost EV uptake in the Philippines

On January 27, 2025, the Asian Development Bank (ADB) signed a financing package of up to PhP583 billion ($100 million). Ayala Group, the country’s biggest conglomerate, will manage the financing package and will be tasked to develop an electric mobility ecosystem in the Philippines.

This funding will procure and install electric vehicle charging stations (EVCS) and acquire electric vehicles (EVs) for commercial use, furthering ADB’s commitment to sustainable transport, including its previous initiatives for electric jeepneys (e-jeepneys) and electric tricycles (e-trikes).

According to ADB, “This project is a significant step towards a sustainable and low-carbon future for the Philippines,” said ADB Country Director for the Philippines Pavit Ramachandran. “By fostering the development of a robust electric mobility ecosystem, we are addressing critical environmental challenges such as air pollution and driving economic growth by creating green jobs, enhancing energy security, and promoting inclusive and resilient urban development.”

The Philippines’ efforts to decarbonize its transportation sector and transition to cleaner vehicles represent a positive step forward. The Asian Development Bank’s (ADB) financial support is crucial for helping the country achieve its target of expanding its EV adoption and EV charging stations nationwide while gradually phasing out ICE vehicles. However, as the transition to EVs progresses, the Philippines needs to develop comprehensive plans for maintaining these EVs and supporting infrastructure.

Therefore, a significant portion of the financing should be allocated to enhancing the nation’s capacity to maintain its EVs and associated facilities effectively. This proactive approach will help ensure that the Philippines reaps the long-term benefits of a cleaner, more sustainable transportation system and the improved health of its citizens and the environment.