Commercial EV adoption can help businesses become more sustainable. Mober Founder and CEO Dennis Ng shares with The Business Manual what can be done by the government to push for the use of EVs in the country.

Data from the International Organization for Standardization (ISO) shows that the logistics and transport sector is one of the largest contributors to global carbon dioxide (CO2) emissions. In fact, the sector contributes over a third of global emissions and is actually the largest-emitting sector in a number of developed countries. In order to combat this, private entities and governments around the world have been pushing for the adoption of commercial electric vehicles (EVs) in order to make logistics and transport more sustainable and environment-friendly. However, achieving this is easier said than done due to various misconceptions about EVs. 

For Dennis Ng, Founder and CEO of green logistics firm Mober, the government plays a crucial role in pushing for commercial EV adoption here in the Philippines. While there are already existing steps being taken by the government, are these enough to encourage businesses to shift to EVs? 

What misconceptions about electric vehicles and green logistics would you like to clarify for business owners who may be hesitant about looking into this option? 

Many business owners believe that EVs are expensive and not practical for long-term use. However, the total cost of ownership is lower due to reduced fuel and maintenance costs. EVs are also reliable and can handle commercial demands just as efficiently as traditional vehicles.

How do you feel about the government’s efforts towards pushing for the use and support of EVs here in the country?

In the Philippines, the government has initiated several efforts to promote the adoption of electric vehicles (EVs), including the Electric Vehicle Industry Development Act (EVIDA), which provides tax incentives and promotes infrastructure development like charging stations. These steps are encouraging businesses to explore EV options and help push the country toward its sustainability goals.

However, these efforts remain in the early stages, and more needs to be done beyond policy declarations. While incentives are available, the government should focus on making EV adoption more financially accessible, particularly for commercial use. Mandating sovereign banks like DBP and LandBank to offer low-interest loans and more flexible financing terms would make a significant impact, especially for startups and SMEs looking to transition to EV fleets.

To truly push EV adoption, the government needs to prioritize financial accessibility and create stronger incentives for businesses. By expanding financing programs, reducing costs for businesses, and continuing to invest in EV infrastructure, the government can ensure that its EV initiatives result in broader adoption across commercial sectors.

What do you think the Philippine government is doing right in terms of introducing electric vehicles? What other policies should be put in place in order to increase the awareness and support for EVs?

To improve the adoption of commercial EVs here are some focused policy recommendations:

1.⁠ ⁠Incentives for Commercial Fleet Conversion: Provide tax breaks, subsidies, or rebates specifically for businesses that invest in electric vehicles for logistics, delivery, and transportation services. This can reduce the initial cost barrier for fleet operators.

2.⁠ ⁠Commercial EV Infrastructure Expansion: Prioritize the development of fast-charging stations in key commercial and industrial zones where delivery trucks and transport fleets operate. This will ensure commercial EVs have the necessary infrastructure to remain efficient.

3.⁠ ⁠Low-Interest Loans and Leasing Programs for Commercial EVs: Create financing schemes tailored for businesses to facilitate the purchase or lease of electric trucks and vans, helping them overcome the upfront cost challenges.

4.⁠ ⁠Government Fleet Electrification Targets: Encourage or mandate the electrification of public sector fleets, such as postal services and government logistics, which can set a strong example and create demand for commercial EVs.

5.⁠ ⁠Carbon Credits and Tax Incentives: Offer carbon credits or additional tax deductions to companies that integrate EVs into their supply chains, encouraging more businesses to transition to green logistics.

6.⁠ ⁠Exemption from Truck Ban 

By focusing on these policies, the government can significantly boost commercial EV adoption and drive sustainable logistics in the country.

Dennis Ng is the founder and CEO of Mober, a green logistics services company founded in 2015 and serves clients such as IKEA and Monde Nissin.