Driving Toward a Sustainable Future: The Electric Vehicle Industry Development Act (EVIDA)
- Yen Roxas
- Jan 13
- 2 min read
The Philippines is steering its transportation sector toward a greener and more sustainable future with the enactment of the Electric Vehicle Industry Development Act (EVIDA), also known as Republic Act No. 11697. Signed into law in 2022, EVIDA serves as a blueprint for transforming the country into a hub for electric vehicles (EVs), addressing climate change, and reducing dependence on fossil fuels.
Here’s everything you need to know about EVIDA and its impact:
1. What Is EVIDA?
EVIDA establishes a comprehensive policy framework to develop and support the local electric vehicle industry. It includes measures to promote EV adoption, build the necessary infrastructure, and encourage investments in manufacturing and innovation.
The law recognizes the urgent need to transition to sustainable mobility to reduce greenhouse gas emissions, improve air quality, and meet global climate goals.
2. Key Features of EVIDA
EVIDA outlines several significant provisions aimed at fostering EV adoption:
Fleet Conversion Mandate: Public and private sectors are required to allocate at least 5% of their fleet to electric vehicles.
Incentives for EV Users and Manufacturers:
Tax exemptions and import duty reductions for EVs and EV-related components.
Non-monetary perks like priority lanes, designated parking slots, and reduced vehicle registration fees.
Infrastructure Development:
Deployment of charging stations in strategic locations across the country.
Integration of renewable energy in EV infrastructure to ensure sustainability.
Creation of the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI): This master plan outlines specific strategies and timelines for the development of the EV sector.
3. The Vision for the Future
EVIDA envisions a future where:
EVs dominate public and private transportation, including electric jeepneys, buses, and tricycles.
Charging stations are accessible and powered by renewable energy sources.
The Philippines becomes a competitive player in the global EV supply chain, attracting investments and fostering local manufacturing.
4. Benefits for the Philippines
EVIDA brings numerous benefits to the country, including:
Environmental Impact: Significant reduction in air pollution and carbon emissions.
Economic Growth: Creation of jobs in EV manufacturing, maintenance, and infrastructure development.
Energy Security: Reduced dependence on imported fossil fuels.
Cost Savings: Lower fuel and maintenance costs for EV owners.
5. Challenges and Opportunities
While the potential is vast, challenges remain, such as the high cost of EVs, limited infrastructure, and public awareness. However, with EVIDA as a guiding framework, these barriers can be addressed through collaborative efforts between the government, private sector, and local communities.
The Electric Vehicle Industry Development Act marks a crucial milestone in the Philippines' journey toward a cleaner, greener, and more sustainable future. By prioritizing the development of the EV sector, the country is not just modernizing transportation but also making a powerful commitment to the planet and its people.
RXS Meta Group of Companies supports the transition as part of our ESG Consulting.
