TEMPO.CO, Jakarta - The International Council on Clean Transportation (ICCT) assesses that the electrification of the transportation sector is on the right track to achieve the net zero emission (NZE) target of 2060 or sooner, according to a press release received by Tempo on Thursday, February 29, 2024.

The potential for battery electric vehicles (EV) to reduce greenhouse gas (GHG) emissions is the greatest compared to other types of low-emission vehicles.

Apart from that, battery electric vehicles can also optimize the achievement of GHG reduction targets when combined with increasing the electricity mix from renewable energy.

These are ICCT's findings in a study entitled "Comparison of the Life Cycle of Greenhouse Gas Emissions from Combustion Engine Motor Vehicles and Electric Vehicles in Passenger Cars and Motorbikes in Indonesia".

This study was presented in the "Media Workshop: Course To Zero (Emission)" at ECO-S Coworking & Office Space Sahid Sudirman Residence, on Wednesday (28/02). At the event were present the Deputy for Infrastructure and Transportation Coordination of the Ministry of Maritime Coordination and Investment, Rachmat Kaimuddin and two ICCT Senior Researchers, Aditya Mahalana and Georg Bieker, who are also the main authors of the study.

Rachmat Kaimuddin said that the transportation sector is the second largest contributor to GHG emissions in Indonesia and the largest in Jakarta.

“The government wants to encourage the adoption of zero-emission vehicles. "The most suitable vehicle for this is a battery electric vehicle," he said.

"According to ICCT calculations, in 2050 emissions from the transportation sector will increase twice as much as now," added Aditya Mahalana.

He explained that reducing emissions in this sector could be achieved by adopting battery electric vehicles.

Examining the results of the ICCT study which examines life-cycle emissions in four- and two-wheeled vehicles, there is potential to reduce GHG emissions by comparing various sources of powertrains. The emissions life cycle refers to vehicle emissions, starting from the manufacturing process, fuel including mining, refining and electricity generation processes, until the end of the vehicle's life with a service life of generally 18–20 years.

ICCT uses assumptions about vehicle use and energy sources in 2023. This study also makes projections for 2030 based on the government's plan to achieve the net zero emissions (NZE) target by 2060, especially adding to the mix of renewable energy sources.

The five power series compared are fossil fuel vehicles (BBM), conventional hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV), hydrogen fuel cell electric vehicles (FCEV), and battery electric vehicles.

"Battery electric vehicles only produce half the emissions of petrol vehicles sold in 2030, and could even be lower," said Georg Bieker.

The study's calculations show that the life cycle emissions of battery electric vehicles for the small vehicle, sport utility vehicle (SUV) and multipurpose vehicle (MPV) segments in 2023 will be 47–56 percent lower than petrol vehicles. Meanwhile, projected life cycle emissions for SUVs in 2030 are estimated to be 52–65 percent lower compared to petrol vehicles produced in 2023.

If electric vehicle battery charging uses electricity from renewable energy sources, the potential emissions can be up to 85 percent lower.

“HEVs and PHEVs can help reduce emissions, but not in the long term. "These two vehicles make it impossible to achieve the NZE 2060 target," said Bieker. HEVs still use fuel and only offer fuel efficiency benefits. PHEV also still relies on petrol as its main fuel.

--Next page, electric motorbikes also have the potential to reduce GHG emissions compared to conventional motorbikes.

Electric motorbikes are also included in the ICCT study. Based on this study, electric motorbikes also have the potential to reduce GHG emissions compared to conventional motorbikes. The ICCT study shows that in 2023, the life cycle emissions of motorbikes in the electric motorbike segment will be 26-35 percent lower than those of petrol motorbikes.

The projected life cycle emissions for electric motorbikes in 2030 have the potential to reduce emissions by 34–51 percent compared to fuel motorbikes produced in 2023.

The ICCT study proposes four policy options. First, the government can implement special policies to increase domestic production of batteries and electric vehicles.

This policy can be pursued by setting production and sales targets for electric vehicles through the Ministry of Industry. This policy is also coupled with tax reduction incentives for electric vehicle manufacturers.

Second, the government could consider phasing out production and sales of petrol cars and motorbikes, as well as HEVs and PHEVs, in 2040. This is important to accelerate the achievement of the 2060 NZE target.

Third, the government can establish a sales mandate for electric vehicles and/or implement the Corporate Average Fuel Economy (CAFE) Standard to help manufacturers increase the share of battery electric vehicles. Please note, the CAFE Standard is an effort to reduce vehicle fuel consumption, such as small cars and trucks, through the implementation of fuel efficiency standards.

The final option, the central and regional governments could consider providing subsidies for the purchase of battery electric vehicles and more diverse tax incentives. This policy is balanced with a feebate/rebate or excise policy for vehicles with high levels of pollution or fuel consumption.

"Apart from incentives, non-incentive policies such as the odd-even exception in Jakarta or the application of special rates for parking battery electric vehicles and others can help," said Aditya. He also proposed a fee reduction option for charging electric vehicle batteries outside peak hours (from evening to morning).

According to Rachmat, the government will continue tax relief incentives, as well as issue regulations suspending import duties on electric vehicles to boost domestic production.

The government, he said, is coordinating to attract investors such as Citroën to build battery electric vehicles domestically as of July this year. Rachmat also said that the government had previously prepared two types of incentives for motorbikes and electric cars. "For motorbikes we provide a subsidy of Rp7 million, for cars 10 percent of the value added tax is borne by the government," he said.

Currently, the transportation sector contributes 27 percent of GHG emissions and has the potential to increase rapidly with increasing national economic growth. Some of the benefits of decarbonizing the transportation sector include reducing the number of people who are vulnerable to adverse health and productivity impacts due to air pollution, supporting the availability of clean air for human health, and reducing oil imports and the government budget for fuel subsidies.

TEMPO.CO

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