Reduction in GHG Emissions from Battery-based EV Higher Than Other Vehicles: ICCT
Editor
29 February 2024 09:19 WIB
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.
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