The Road Ahead Is Electric: Building Transport and Energy Resilience Through Accelerated Philippine EV Industry Development
The need to accelerate the transition toward electric mobility in the Philippines has become critical now more than ever. Recent fuel supply volatility due to persisting geopolitical tensions, and the rising cost of fuel and essential goods continue to place pressure on the country’s transport sector and economy.
In response, the recent directive from the President of the Philippines through Executive Order 110 to promote and accelerate the adoption and use of Electric Vehicles (EVs) is a timely and important step. The directive recognizes electric mobility as a key solution to help secure and strengthen the transportation, logistics, and manufacturing sectors amid continuing global uncertainties.
Data from the Department of Energy show that gasoline and diesel account for more than 90 percent of transport energy consumption. The dependence of the country’s transport sector on imported fossil fuels continues to expose transport service entities (TSE), public utility vehicle (PUV) operators and drivers, and millions of commuters to recurring fuel price increases arising from global geopolitical and market uncertainties with no immediate indications of resolving.
This reliance not only increases vulnerability to global oil volatility but also contributes significantly to harmful emissions and deteriorating air quality. In 2021, the transport sector accounted for 56 percent of air pollutant emissions in the country, according to the Department of Environment and Natural Resources – Environmental Management Bureau (DENR-EMB) Emissions Inventory. Air pollutant emissions included in the inventory were particulate matter (PM), nitrogen oxides (NOx), sulfur oxides (SOx), carbon monoxide (CO), and volatile organic compounds (VOCs).
The health implications of this continued dependence are substantial. The State of Global Air 2025 Report estimates that air pollution contributed to 7.9 million deaths worldwide in 2023, including more than 99,000 deaths in the Philippines.
The economic impacts of air pollution are undeniable, and its consequences span generations, with an estimated loss of five percent of the global gross domestic product (GDP) in 2025. This estimation encompasses poor health outcomes, premature mortality, productivity loss and cognitive impacts according to the World Bank.
Opportunities to accelerate and scale-up the electrification of the transport sector
Against this backdrop, the Philippines has been taking significant steps and gaining momentum toward cleaner alternatives. The Electric Vehicle Industry Development Act (EVIDA) was enacted in 2022 to promote the growth of the country’s electric vehicle industry and ensure energy independence through reducing reliance on imported fuel.
The Comprehensive Roadmap for the Electric Vehicle Industry (CREVI), an EVIDA-mandated national development plan for the EV industry, focuses on the development of EV charging stations, manufacturing, research and development, and human resource development. The roadmap outlines short, medium, and long-term targets aimed to position the Philippine EV industry to become a producer and exporter of EVs by 2040.
As a result of these efforts, the number of EVs on the road has also been rapidly increasing year by year. Electric vehicle registrations rose from 24,286 units in 2024 to 41,857 from January to September 2025 alone, based on data from the Land Transportation Office and the Department of Energy. This fast-paced growth signals a critical opportunity to ensure an accelerated, sustainable growth of the EV industry as EVs become a more viable and attractive alternative to traditional fuel-based vehicles.
Taking a multi-sectoral and data-driven approach for a sustainable transition through the e-mobility ASAP Project
The Accelerating the Adoption and Scale-up of Electric Mobility for Low Carbon City Development in the Philippines, or the e-mobility ASAP Project, aims to contribute to national energy and climate goals by reducing greenhouse gas (GHG) emissions through e-mobility industry development and increased electrification of the transport sector.
The project adopts a multi-sectoral approach, bringing together partners from government, industry, civil society, and academe. Funded by the Global Environment Facility (GEF), it is implemented by the United Nations Industrial Development Organization (UNIDO) in collaboration with the Department of Trade and Industry (DTI) and the Board of Investments (BOI), and in partnership with a Clean Air Asia-led consortium comprising De La Salle University (DLSU), the Urban Electric Mobility Initiative (UEMI), and the Electric Vehicle Association of the Philippines (EVAP). The Department of Energy (DOE) and the Department of Transportation (DOTr) also serve as part of the Project Steering Committee (PSC).
The project’s efforts are grounded in addressing key barriers in scaling up the EV industry – through supporting EV policy development, conducting value chain studies, expanding electric public utility vehicle (e-PUV) deployment, and capacity building and human resource development. Key efforts on the e-PUV front include developing green routes, exploring viable financing models, and reskilling workers across the EV value chain.
Together with private sector partners and TSEs, the project is currently piloting an innovative profit-sharing business model to help de-risk investments in electric jeepneys. A support package for the procurement and installation of EV charging infrastructure, capacity building, and technical assistance will be provided by the project to selected proponents. Concurrently, the project is also developing training for the upskilling and reskilling of the existing workforce to actively participate in the EV transition.
UNIDO Country Representative Teddy Monroy emphasized that the country’s ongoing discussions on energy security and transport resilience point to the growing importance of scaling e-mobility industrial development sustainably.
“The ongoing oil crisis and the associated supply risks underscore the fact that the transition to electric mobility is now an economic imperative, not merely an environmental priority. While progress is underway, accelerated action is crucial. UNIDO remains committed to creating a resilient, inclusive, and low-carbon industrial future in the Philippines by (1) facilitating local electric vehicle (EV) manufacturing, tapping into strategic opportunities in critical minerals development; (2) demonstrating innovative financing and equitable business partnerships to accelerate deployment of EVs and charging stations; (3) strengthening capacity for battery end-of-life management; and (4) equipping the workforce with the necessary skills required for an fast-evolving value chain.”
These initiatives further support the implementation of EVIDA and the targets set under CREVI by translating policy direction into concrete action, marking a critical step in enabling a data-driven, inclusive, and sustainable scale-up of EV adoption and e-PUV operations.
With the EO 110 identifying DTI as the key government agency in promoting EV adoption, the directive further highlights the need to strengthen the enabling environment for investments in electric mobility together with the BOI. Strategic policies such as the Electric Vehicle Incentive Strategy (EVIS), currently pending approval from the Office of the President, will serve as a critical first step in supporting investments and strengthening the Philippine EV industry. The EVIS is intended to narrow the cost gap between electric vehicles and fossil fuel-based vehicles, enabling the shift to EVs while providing fiscal and non-fiscal incentives that can attract investments in EV and EV-parts manufacturing. Support for the development of the EVIS is one of the central components of the e-mobility ASAP project.
BOI Executive Director for Industry Development Service (IDS) Ma. Corazon Halili-Dichosa highlighted what this means for the country’s competitiveness within Southeast Asia.
“We have seen from our neighbors in ASEAN what is possible when countries make strategic investments in electric mobility. The Philippines has a significant opportunity to strengthen its competitiveness by creating an enabling environment for EV industry investments and positioning itself as an active participant in the growing regional EV economy.”
Next steps in driving the shift to e-mobility in the Philippines
To accelerate the EV adoption in response to ongoing fossil fuel price volatility, the following actions are critical:
• Accelerate the expansion of charging infrastructure in strategic locations through EVCS installation mandates, streamlined LGU permitting process and introduction of local incentives such as property tax reduction perks among others.
• Expand the integration of EVs in public transport by enacting clear EV adoption mandates and ensuring adherence; and supporting financing mechanisms to reduce upfront costs for TSEs.
• Promote local capacity building and workforce development for EV deployment
• Accelerate the commercial vehicle adoption in businesses and logistics through clear adoption mandates and incentives.
• Accelerate the adoption of Battery EVs (BEVs) and Plug-in Hybrid EVs (PHEVs) through clear differentiated incentives compared to Hybrid EVs (HEVs).
As a key partner in the implementation of the e-mobility ASAP project, Clean Air Asia is committed to continuing to work with partners in fast-tracking structural solutions that reduce long-term dependence on fossil fuels. Electric mobility presents one of the most practical and scalable pathways to achieve this in the Philippines.
Clean Air Asia Deputy Executive Director Atty. Glynda Bathan-Baterina noted that the growing urgency to electrify transport also presents an opportunity to address the environmental impacts of continued dependence on fossil fuel-based mobility.
“The crisis in the Middle East shows how fossil fuel dependence results in the vulnerability of our country's transport sector. However, in the midst of this crisis is the opportunity to accelerate electric mobility adoption to shield our transport sector from future shocks, create thousands of green jobs for Filipino workers, and deliver cleaner air to our communities.”
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The Accelerating the Adoption and Scale-up of Electric Mobility for Low-Carbon City Development in the Philippines, or the e-mobility ASAP Project, is funded by the Global Environment Facility (GEF), implemented by the United Nations Industrial Development Organization (UNIDO) Philippines, the Department of Trade and Industry (DTI), and the Board of Investments (BOI), and executed by Clean Air Asia with its consortium partners De La Salle University (DLSU), Electric Vehicle Association of the Philippines (EVAP), and Urban Electric Mobility Initiative (UEMI).
Contact the e-mobility ASAP project team through emobility@dti.gov.ph
