INCHEON, South Korea – The 56th annual meeting of the Asian Development Bank (ADB) Board of Governors begins here today at the Songdo Convensia Center in this international port city. Incheon is an expanding metropolis with a population of three million, making it South Korea’s third most populous city after Seoul and Busan.
ADB President Masatsugu Asakawa said this is the first time since 2019 that the multilateral bank’s four-day annual meeting is being held completely in-person. The theme of this year’s conference is “Rebounding Asia: Recover, Reconnect, and Reform.” Many of the plenary and breakout sessions revolve around climate change and sustainable development in the post-pandemic world.
In 2013, the United Nations Green Climate Fund selected Songdo International Business District (IBD) as its global headquarters following an open bid process involving six prospective host countries. The 600-hectare IBD is a master-planned city built on reclaimed land from the Yellow Sea as part of the Incheon Free Economic Zone – a 21st century business hub located 65 kilometers southwest of Seoul – which was built from scratch starting 2003.
This eco-friendly IBD is considered the world’s smartest city with 106 LEED-certified buildings, including Songdo Convensia, Asia’s first LEED-certified convention center. It features a pneumatic waste disposal system with no need for garbage trucks; 25 kilometers of bike paths; and plenty of charging stations for electric vehicles (EVs) that abound in this low-carbon, high-tech utopia.
EVs are fast gaining popularity across the globe, and South Korea is leading this trend in Asia due to a combination of government support, technological advancement, and a robust automotive industry. The country’s Ministry of Trade, Industry, and Energy recently announced a comprehensive road map that intends to take up 12% of the global EV market in seven years. Under the plan, South Korean carmakers will boost their production of EVs from 254,000 units in 2022 to 3.3 million units by 2030.
In contrast, the Philippine Department of Energy estimated that there were only 9,000 EVs and 300 charging stations as of end-2022 throughout our archipelago. But not for long, thanks to bold initiatives from the public and private sectors. For instance, the Department of Science and Technology has developed an EV charging system for commercial use that can fully charge e-jeepneys and e-tricycles in just 30 minutes compared to the previous four to six hours of charging.
For its part, PGA Cars Inc. has spearheaded its electromobility program that aims to expand the adoption of zero-emission, 100%-electric vehicles in the Philippines. The Coyiuto-owned conglomerate introduced the Porsche Taycan in 2020 and the Audi e-tron range in early 2022 – ahead of any competitor.
To date, Porsche and Audi are the only global brands that have sold in relevant numbers its fully electric-powered models in the Philippines. The domestic uptake reflects the strong customer demand for such models worldwide. It may be noted that Porsche sold nearly 35,000 Taycan units in 2022, up from the previous year’s 20,015 during its first full year in the market. On the other hand, Audi e-tron deliveries rose to 118,196 units last year, representing a 44% jump from the year-ago level.
PGA Cars’ “FutureNow” program involves significant investments on facilities specifically designed to address the requirements and safety standards of EVs. These include service, maintenance, storage, charging, and showroom facilities. This year, plug-in hybrid models from Bentley have been made available by PGA Cars in the Philippines, while electrified Lamborghini models will be introduced in 2024.
Audi and Porsche have set clear directions regarding their transition to 100%-electric models. They have allowed PGA Cars to start planning for their arrival years before the e-tron and Taycan were introduced in the country. One of the first steps was establishing the EV Department of PGA Cars, which anticipated the requirements of electric models produced by the four brands.
Factory-certified product specialists as well as trained technical personnel and engineers comprise the EV Department, which proactively leads or collaborates with groups that support the wider adoption of EVs in the Philippines. This is consistent with directions from PGA Cars’ management in the belief that an organization with the expertise and proven experience in EV technology is a key component of its electromobility program.
With the recent enactment of the Electric Vehicle Industry Development Act, other private sector groups should be able to respond to the government’s initiatives toward sustainability. And in the future, the Philippines can hopefully catch up with South Korea in terms of dominance in the global EV market.
J. Albert Gamboa is a Life Member of the Financial Executives Institute of the Philippines (FINEX) and Vice-Chair of the FINEX Ethics Committee. The opinion expressed herein does not necessarily reflect the views of these institutions and the Manila Bulletin. #FinexPhils www.finex.org.ph