MANILA, Philippines — The International Finance Corporation (IFC) will be working with Philippines-based engineering and construction enterprise First Balfour on accelerating the country’s transition to a green transport system, primarily through the promotion of electric vehicles (EVs).
This project is in line with the national government’s climate goal to cut carbon emissions and regulate the fuel use of gasoline-powered vehicles, the IFC said in a statement on Monday. IFC is a unit of the World Bank Group.
First Balfour, through the assistance of IFC, plans to conduct evaluations and viability studies for the establishment of an efficient EV system in the First Philippine Industrial Park (FPIP), including renewable energy-powered charging facilities.
“Aligning with our mission towards decarbonization, we are actively exploring opportunities in the electric vehicle space to be able to provide an integrated infrastructure and services to our customers, such as FPIP,” said Anthony Fernandez, First Balfour’s president and chief operating officer.
FPIP, a joint venture between the local company First Philippine Holdings and the Japanese group Sumitomo Corporation, is one of the Philippines' largest and fastest-growing industrial parks.
Since its founding in 1996, FPIP has spearheaded efforts to reach “net zero,” a state wherein decarbonization efforts are on par with greenhouse gas emissions, through a more robust transport system both within and outside the industrial park.
A growing number of companies in the country are eyeing EV adoption to help green their business. However, technical competence and effective business cases remain scarce.
“A huge investment opportunity over the next decade, electric vehicles are critical in the fight against climate change and can help reduce emissions, lower transport costs, and create thousands of green jobs,” said Jean-Marc Arbogast, IFC country manager for the Philippines.
“The project will also help diversify FPIP and First Balfour’s infrastructure services and hopefully bring in new market players and spur the evolution of the local electric vehicle segment in the country,” he added.
IFC has pioneered the development of sustainable modes of transport in Asia. The corporation invested in a $100 million green bond, the first to target only the EV sector, issued in Thailand by TMBThanachart Bank Public Company Limited.
Gov’t support on EVs
For decades, the Philippine government has supported the use of electric vehicles in the country through several legislations.
In January, they issued Executive Order No. 12, series of 2023, which modified tariff rates on EV components to aid the mainstreaming of EVs in the country.
This is pursuant to the Electric Vehicle Industry Development Act (EVIDA) passed early last year to expand the Philippines' electric vehicle industry through a national policy framework.
According to the United Nations Environment Programme, transportation remains responsible for nearly a quarter of the world’s air pollution and greenhouse gas emissions, which has pushed government bodies to conduct policies that would effectively integrate EVs into its climate campaign.
EVs could help the Philippine government in meeting its aim of greenhouse gas emissions reduction by 75% of the baseline by 2030, especially if similar initiatives are replicated throughout industrial parks and extended to other transport modes and logistics.