May 01, 2023

Can electric vehicles help ASEAN countries develop sustainably?

topic:	Sustainable Development
located:	Indonesia, Laos, Vietnam, Brunei, Cambodia, Myanmar, Malaysia, Philippines
editor:	Leo Galuh

The upcoming ASEAN Summit on 9 May provides an opportunity for the region to address its air pollution and greenhouse gas (GHG) emissions by focusing on the development of electric vehicles (EVs). Indonesia, as the chair of the 2023 ASEAN Summit, plans to introduce "Three Pillars of Priorities Economic Deliverables" which include Rebuilding, Digital Economy, and Sustainability. As ASEAN countries discuss how to continue their development while decreasing their carbon emissions, EVs could be posited as a solution to both issues.

The ASEAN region has undergone huge industrial growth in 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 leading polluters in Southeast Asia in 2022 were industry emissions, power generation, vehicle emissions and open burning.

Indonesia was noted as having the highest pollution levels, with six of its cities in the top 15 for highest PM2.5 concentrations. Hanoi, the capital city of Vietnam, sat in the second rank, while Laos’ capital Vientiane was the 14th most polluted city last year.

The ASEAN region is particularly vulnerable to climate change due to its coastal populations and reliance on agriculture, affecting citizens, businesses, and governments significantly. Air pollution in three megacities - Jakarta, Bangkok and Manila - is also of high concern as thousands of people are treated in hospitals weekly for respiratory diseases.

This has encouraged entrepreneurs and governments to invest in more sustainable methods of industrialisation and transportation, placing the production and use of EVs at the top of their agenda.

EVs emit no greenhouse gases because they are powered by a battery and do not use fuel internally. The United States Environmental Protection Agency (EPA) has stated that EVs typically have a lower carbon footprint than gasoline cars, even when charging electricity is factored in. They also require fewer hazardous liquids, such as engine oil and coolant fluids. 

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, an Executive Director with Centre for Strategic and International Studies (CSIS), notes that the processing of nickel raw material can be done in neighbouring Southeast Asian countries. Indonesia could also share its knowledge and experience gained from building the automotive industry for over 30 years with other countries, further accelerating the development of the project.

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

Image by Jakob Owens

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