DAVAO CITY – The Davao City government is pushing for a shift towards a modern transport system that prioritizes environmental sustainability, as reflected in a proposed ordinance to strengthen the city’s electric vehicle (EV) program.

A proposed ordinance pending before the Davao City Council seeks to establish a comprehensive incentive framework for the EV industry in the city, covering manufacturers, dealers, operators, infrastructure providers, and recycling enterprises, and create a dedicated monitoring body to oversee implementation.

Authored by Councilor Temujin Ocampo, chairman of the Committee on Environment and Natural Resources, the draft measure—titled Davao City Electric Vehicle Ordinance of 2026—aligns with national policy under Republic Act No. 11697, which promotes EV adoption and supporting infrastructure nationwide.

The ordinance declares it a local policy to promote the use of electric vehicles for private, government, and public transport, alongside the development of charging stations and environmentally sound systems for battery disposal and recycling within Davao City.

It also covers a broad range of stakeholders in the EV ecosystem, including manufacturers, distributors, dealers, spare parts suppliers, charging station operators, public transport operators, and entities engaged in EV battery and electronic waste management.

Under the proposal, qualified EV manufacturers, distributors, dealers, and charging station operators may receive local tax holidays of up to five years under the city’s existing investment incentive framework.

Private users, government entities, and public utility operators may likewise benefit from reduced or waived registration fees for a limited period, expedited permit processing, and free parking in designated public facilities.

For EV battery recycling and repurposing enterprises, the ordinance proposes a graduated incentive scheme: A 100 percent local business tax exemption for the first three years of operation, followed by a 60 percent reduction in the fourth year, and a 40 percent reduction in the fifth year, subject to accreditation by city authorities.

These enterprises may also qualify for an exemption from basic real property tax for up to three years on assets directly used in operations, excluding statutory shares, under conditions set by the ordinance.

In addition, EV-related green industries may be classified as priority investments under the city’s local incentive code, allowing access to public-private partnership programs and investment facilitation mechanisms.

The measure introduces a procurement preference for government projects that utilize recycled EV batteries and repurposed electronic components, in support of circular economy and sustainable procurement policies.

It mandates a take-back system requiring EV manufacturers and dealers to establish or participate in battery recovery programs.

Disposal and recycling activities must be conducted only through facilities accredited by the Department of Environment and Natural Resources-Environmental Management Bureau (DENR-EMB), in compliance with national environmental laws, including RA 6969 and RA 9003.

EV users—including government fleets—will be required to surrender used batteries only to accredited collection points or recycling facilities.

Violations of battery disposal provisions may result in suspension of local incentives and fines ranging from P1,000 to P5,000, without prejudice to penalties under national law.

The ordinance includes a consumer protection provision prohibiting the unlawful deactivation or bypass of factory-installed anti-theft immobilizer systems in EVs for repossession or fee-collection purposes.

However, it affirms that banks and financial institutions retain lawful rights to repossess vehicles or enforce security interests, provided due process is observed.

To ensure implementation, Ocampo said the ordinance proposes the creation of an Electric Vehicle Monitoring Committee chaired by the city mayor, with the City Environment and Natural Resources Office as vice chairman and the Davao City Investment Promotion Center as secretariat.

Members will include representatives from key local offices, national agencies such as the Department of Energy and the Department of Trade and Industry, and private-sector and civil-society representatives.

An Electric Vehicle Sustainability Fund will also be established, sourced from penalties, fees, grants, donations, and city appropriations.

The proposed initial allocation is P1 million annually to support implementation, infrastructure development, information campaigns, and capacity-building activities.

Ocampo said the committee is tasked to draft implementing rules and regulations within 60 days upon effectivity. Semi-annual reports will be submitted to the city council detailing program implementation and fund utilization.

If approved, the ordinance will take effect 15 days after publication and posting in designated public areas, Ocampo said. He added that the committee is finalizing the draft and committee report, with a second reading expected in the next regular session.

“We are hoping it will be passed by the end of May,” Ocampo said during the Pulong-Pulong sa Dabawenyos on Tuesday afternoon, April 21, adding that the measure aligns with the city’s push for “environmentally sound modernized transport” under the administration of Mayor Sebastian Duterte.

He noted that global EV manufacturers have shown interest in expanding operations in the city, citing potential incentives and infrastructure support.

The proposal builds on recent amendments to the city’s investment incentives code, which classifies EV-related industries as priority sectors, including manufacturing, charging infrastructure, and research and development.

City officials are considering the gradual integration of EVs into government fleets, with plans to transition a portion of public service vehicles in line with long-term fuel-cost-reduction strategies.