Skip main navigation

Policy Developments in Emerging Markets and Developing Economies

What are the policy developments in emerging and developing economies in relation to E-Mobility?
An electric vehicle is drawn in a signage in the street floor at a charging point.
© Unsplash

The following article highlights some EV-related policies in emerging markets and how they are evolving. It also summarises a Global Environment Facility initiative to support electric vehicles.

Policies and measures include national e-mobility strategies, fiscal incentives such as tax benefits and public-private partnerships, support for research and development, and pilot and demonstration projects tailored to the transport modes applicable to their situation, i.e. two and three-wheel vehicles, shared mobility, taxis and buses.

The following countries and regions face additional challenges in increasing the use of electric vehicles. For example, their fleets may be heavily dependent on second-hand vehicles, with electric vehicles taking longer to become available. Deployment of charging infrastructure may be hampered in regions with weak grids. Few have set emission standards, but these may need to be higher to encourage EV uptake.

Africa:

Only a small proportion of vehicle sales on the continent are electric, with South Africa leading the way. In Kenya, the electrification of road transport has been identified as a critical component in achieving a target to reduce emissions from the transport sector by 3.46 million tonnes of carbon dioxide equivalent by 2030. To support this target, a reduction in excise duty on BEVs (carrying more than ten people) from 20% to 10% has been proposed. They will be subject to an import duty of 25% compared to 18% for an equivalent ICE vehicle.

A tall man next to an electric vehicle in Africa. EV in Africa. The World Economic Forum (2018)

Southeast Asia:

Although the use of electric vehicles is still in its infancy in Vietnam, national planning documents show an ambition to promote the use of electric vehicles. The government recently issued a decree setting registration fees for electric vehicles (mainly electric two and three-wheelers) at zero from March 2022 to February 2027. After that, registration fees will increase to 50% compared to conventional vehicles.

Indonesia’s Ministry of Energy and Mineral Resources introduced the Regulation on the Provision of Charging Infrastructure for BEVs in 2020. It aims to support companies in setting up three business systems: provider, retailer and cooperation systems, and to simplify the licensing procedures for charging stations. Across Indonesian cities, the Ministry of Transport is exploring ways to introduce battery electric buses. The DAMRI e-bus project, which aims to replace diesel buses with electric buses, is in the first phase of expanding electric transport in and around Jakarta.

An urban landscape of a bunch of vehicles in the streets fo a city in Asia, with a lot of motorcycles and taxis. Urban landscape. Shutterstock (n.d.)

Latin America

In Colombia, the city of Bogotá has a procurement process to purchase 1,485 electric buses by 2022. Companies such as BYD and Transdev have signed supply and service agreements with the city. Less than 260 electric buses are currently in operation. Colombia’s Law 2099, approved in July 2021, aims to promote the efficient use of energy resources and expand the use of non-conventional energy sources. Under the law, the Ministry of Mines and Energy has granted an exemption from the 20% energy consumption tax for electricity used to charge electric vehicles at public stations and in the public transport system.

Costa Rica’s 2019 ‘National Decarbonisation Plan 2018-2050’ sets the goal of a decarbonised economy with net zero emissions by 2050. Of the ten proposed decarbonisation pathways, three are directly related to the transport sector and include the transformation of public transport and LDV fleets to ZEVs by 2050 and the transformation of freight transport to achieve net zero or the lowest possible emissions.

In 2021, a demonstration project with three all-electric buses on one urban and one interurban bus route will be carried out with the support of the German government.

An electric bus fleet parked next to each other in Colombia. Electric bus fleet in Colombia. Smart Energy International (2020)

Global E-Mobility Program

The ‘Global E-Mobility Program’ supports low- and middle-income countries in their transition to E-Mobility. The five-year program, co-funded by the ‘Global Environment Facility’ (GEF), other organizations, and bilateral donors, consists of one global project and is implemented by several organizations, including the Asian Development Bank, Centro de Mario Molina, the European Bank for Reconstruction and Development, the International Energy Agency, the United Nations Environment Program, and national governments. The program covers more than 50 countries, of which 27 receive financial support for technical assistance and projects from the GEF.

The side of an electric bus, that has a vinyl in form of an electric charger, showcasing that is an electric bus. Electric bus. RoadSafe (2020)

Conclusion:

In conclusion, the deployment of electric vehicles in different countries and regions faces unique challenges. With the combined efforts of governments, international organisations and the private sector, the path to a sustainable and electrified transport future is becoming increasingly feasible.

References:

IEA (2022) Global EV Outlook 2022. Retrieved from: Link

This article is from the free online

Exploring the World of Electric Mobility: Key Concepts and Strategies

Created by
FutureLearn - Learning For Life

Reach your personal and professional goals

Unlock access to hundreds of expert online courses and degrees from top universities and educators to gain accredited qualifications and professional CV-building certificates.

Join over 18 million learners to launch, switch or build upon your career, all at your own pace, across a wide range of topic areas.

Start Learning now