E-Vehicles industry projected to generate 13 million jobs
Location: Manila, Philippines
Date Published: October 07, 2019
The Board of Investments (BOI) stated on Monday that the steady, sustained shift in vehicle choice and usage from traditional to electric vehicles (e-vehicles) is estimated to generate over 13 million jobs
During a hearing on proposed measures for the development and use of electric vehicles in the Senate, BOI Director for Manufacturing Industries Service Evariste Cagatan said that local manufacturers of e-vehicles and spare parts will generate over seven million jobs while manufacturers of plugged-in hybrid vehicles will open up over six million jobs.
Currently, there are 54 firms engaged in e-vehicle manufacturing, 11 manufacturers of parts and components and 18 traders in the Philippines, Cagatan added.
She explained that the BOI is extending incentives to manufacturers to further encourage them to produce e-vehicles and spare parts.
“What we have been harping on since the last Congress was that we wanted BOI to be tasked to craft an electric vehicle incentive strategic program that will provide a comprehensive fiscal and non-fiscal support to enable the shift from traditional motor vehicle industry to electric vehicles and jumpstart domestic manufacturing of e-vehicles and e-vehicles parts and the building of charging infrastructure,” Cagatan said.
She added that the BOI’s proposed program will “narrow the cost between the e-vehicle and conventional vehicles, attract investments, establishment of testing facilities and production of charging facilities.”
The BOI would also like the proposed measures to include research and development and human resource development “to ensure a competitive and sustainable system in the e-vehicle industry.”
The joint hearing is tackling five measures on e-vehicles – Senate Bill No 174 or Electric Vehicles and Charging Stations Act; Senate Bill No. 472 or the Green Vehicles Incentives Act; Senate Bill No. 479 or the Plug-in Hybrid Electric Vehicles Incentives Act; Senate Bill No. 538 or the Green Vehicles Incentives Act; and Senate Bill No. 638 or the Electric and Hybrid Vehicles Incentives Act.
Meanwhile, businesses in the country are being urged to consider sustainable financing solutions, as their operations may face risks brought by climate change in the future.
Securities and Exchange Commission (SEC) Commissioner Ephyro Luis B. Amatong warned that as Philippines is among the top countries to be affected by climate change, companies in the country should also understand the impact of such risks to their businesses.
“We think that sustainability is not just a CSR (corporate social responsibility) exercise, it should be a fundamental part of doing business because the risks associated with climate change affect the fundamental business,” Mr. Amatong said at a sustainable finance forum arranged by ING N.V Manila Branch on Thursday.
He noted that firms should know how to mitigate climate change risks and discuss it with stakeholders since it may affect their business models in the near future.
Governments, corporations and financial institutions issue green bonds which are instruments that support environment-friendly projects.
Eligible projects based on the ASEAN Green Bonds Standards include renewable energy, energy efficiency, pollution control, clean transportation, sustainable water management, climate change adaptation and green buildings.
Earlier this year, the Securities and Exchange Commission (SEC) approved the Guidelines on the Issuance of Sustainability Bonds under the ASEAN Sustainability Bond Standards (SUS).
Issuance of green bonds, just like the regular bonds, are listed on the Philippine Dealing & Exchange Corp. Firms who issue sustainability bonds are also required to submit an annual report containing the use of proceeds to ensure that they were actually used for environmental purposes.