Can electric vehicles help ASEAN countries develop sustainably?

May 1

The upcoming ASEAN summit on May 9 offers the region an opportunity to address its air pollution and greenhouse gas (GHG) emissions by focusing on the development of electric vehicles (EVs). Indonesia, as chair of the 2023 ASEAN summit, plans to introduce “Three pillars of economic deliverable priorities” that include reconstruction, digital economy and sustainability. As ASEAN countries discuss how to continue their development while reducing their carbon emissions, electric vehicles could be seen as a solution to both problems.

The ASEAN region has experienced massive industrial growth over the past half century, which has been accompanied by excessive carbon emissions, leading to dangerous levels of air pollution. According to a report by IQAir, the top pollutants in Southeast Asia in 2022 were emissions from industry, power generation, vehicle emissions and outdoor combustion.

Indonesia was noted to have the highest pollution levels, with six of its cities among the top 15 with the highest PM2.5 concentrations. Vietnam’s capital Hanoi came in second, while Laos’ capital Vientiane was the fourteenth most polluted city last year.

The ASEAN region is particularly vulnerable to climate change due to its coastal populations and reliance on agriculture, which significantly affects citizens, businesses and governments. Air pollution in three megacities – Jakarta, Bangkok and Manila – is also of great concern, with thousands of people being treated weekly in hospitals for respiratory illnesses.

This has encouraged businesses and governments to invest in more sustainable methods of industrialization and transportation, putting the production and use of electric vehicles at the top of their agenda.

Electric vehicles do not emit greenhouse gases because they run on a battery and do not use fuel internally. The US Environmental Protection Agency (EPA) has stated that electric vehicles tend to have a lower carbon footprint than gasoline cars, even when electricity loading is taken into account. They also require less hazardous liquids such as engine oil and coolants.

Indonesia, with its abundant nickel supplies, could play a key role in building the EV ecosystem in the region. However, the country needs to convince all ASEAN member leaders to cooperate in building a regional supply chain. Yose Rizal Damuri, executive director of the Center for Strategic and International Studies (CSIS), points out that the processing of nickel raw material can be done in neighboring countries in Southeast Asia. Indonesia could also share its knowledge and experience gained from building the automobile industry for more than 30 years with other countries, further accelerating the development of the project.

Although electric vehicles can help reduce fossil fuel consumption in the region, aggressive policies to integrate renewable energy into electricity generation are needed to achieve significant reductions. Each country will also need to invest in charging stations in major cities, while ensuring that access to and cost of these services is equitable across socioeconomic classes. However, building a strong EV ecosystem in the ASEAN region is seen as a strong method to promote the industry while addressing dangerous levels of pollution.

Image by Jakob Owens