Green mobility: Shaping Philippine transportation industry

In a time marked by a growing focus on sustainability, the task of addressing pollution, particularly in urban areas, stands as a formidable hurdle in our pursuit for a greener future.

Akin to many nations, the Philippines faces a substantial pollution challenge, wherein the transportation sector reigns as the biggest contributor to urban pollution. The World Bank’s Country Climate and Development Report 2022 reveals that this sector accounts for a considerable 13 percent of our nation’s economy-wide greenhouse gas emissions.

At the center of this pollution problem lies road-based transport that is largely reliant on oil-based fuels. This represents the primary driver responsible for the majority of greenhouse gas emissions. A dire warning from the World Bank forecasts that if the current motorization trend continues, emissions from land transport could surge to more than quadruple by 2050 compared to 2020 levels.

This alarming trend underscores the immediate need for strategic action to address the imminent threat to our economic growth and overall well-being. It has been established that a successful transition to sustainable transportation requires a collaborative and complementary efforts involving both the government and the private sector.

Last year, the government made a significant stride on this front with the signing and enactment of the Electric Vehicle Industry Development Act (EVIDA) which outlines the policy framework for accelerating the growth of the electric vehicle (EV) industry in the Philippines.

Consequently, many private sector stakeholders have ramped up their endeavors to promote sustainable modes of transportation. Meralco, in particular, has emerged as a trailblazer in spearheading the broader and faster adoption of EVs across the nation.

Manuel V. Pangilinan, chairman and chief executive officer of Meralco, emphasized the pivotal role the company plays in the transition to EVs in a recent interview with One News. He highlighted the fact that Meralco is in the best position to install charging stations throughout the country, stating, “Meralco should be the thought leader and lead the charge in the migration to e-vehicles and charging stations.”

This assertion by MVP holds true. Even before the introduction of EVIDA, Meralco had established itself as a pioneer in EV initiatives, from conducting independent tests of EVs and chargers in its Ortigas headquarters, to the strategic installation of charging stations within  its franchise area. Meralco has years of presence in the EV space, and this comes as no surprise, given the company’s extensive experience in the energy sector.

Meralco’s commitment to EVs goes beyond promotion – it walks the talk and extends plans to action. Internally, it has implemented a Green Mobility program with the goal of electrifying at least a quarter of its fleet by 2030. During the  Giga Summit held last October, Meralco revealed that it currently operates 156 EVs in its fleet, equivalent to a seven percent vehicle electrification rate. This actually exceeds the government-mandated five percent threshold.

Nevertheless, the transition to sustainable transportation goes beyond EVs and charging stations; it requires a comprehensive industry-wide approach. Meralco recognizes this, as evidenced by the launch of its subsidiary, Movem Electric, Inc., earlier this year. Movem is set to focus on electric transport solutions – an important component of the transition to EVs.

From a broader perspective, the Philippines has already embarked on a significant journey towards the goal of sustainable transportation, as seen by the growing sales of electric vehicles, particularly e-bikes and e-motorcycles.

But, while we can see these developments in our roads, we are also made aware that more work lies ahead.

The path toward cleaner and greener transportation transcends mere EV sales; it requires an industry-wide paradigm shift that puts into consideration the holistic and sustainable development of the EV ecosystem and with the government helping to enable the private sector.

Meralco leads the drive towards this with its comprehensive approach to sustainability, setting a precedent for other industry players to follow.