Supporting NDC Target through Incentivizing the Use of Electric Vehicles
Supporting NDC Target through Incentivizing the Use of Electric Vehicles
September 20, 2024
Global changes are reshaping multiple sectors, driven by advancements in technology, societal
shifts, political fragmentation, economic trends, and environmental concerns. Climate action and the
Sustainable Development Goals (SDGs) play a pivotal role in shaping policies to reduce greenhouse gas
(GHG) emissions and address global warming. The emphasis on investing in clean and renewable energy
presents opportunities for economic modernization, especially as countries, including Thailand, navigate
the transition from internal combustion engines (ICE) to low-emission vehicles (LEVs).
In Thailand, 70 percent of total GHG emissions is from the energy sector, of which, transportation
accounts for 30 percent. Electric vehicles (EVs) offer a transformative solution for reducing emissions;
however, their overall impact depends on cleanliness of electricity generation and manufacturing processes of vehicle components i.e., batteries. The transition to EVs presents challenges, including ensuring a just transition for stakeholders in ICE and biofuel industries. LEVs such as hybrid electric vehicles
(HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs) provide a balanced
approach for this transition.
In 2023, the Government of Japan funded the policy research on the "Supporting NDC Target through
Incentivizing the Use of EVs" project to support Thailand to mitigate greenhouse gas reduction
in the transport sector so as to achieve carbon neutrality by 2050. This initiative is a collaborative
effort between the Office of Transport and Traffic Policy and Planning (OTP) and United Nations
Development Programme (UNDP), with key technical contribution from Chulalongkorn University, the
Thailand Automotive Institute (TAI), and ERM-Siam Co., Ltd.
The objective of this action research is to draw the comprehensive picture of Thailand’s LEV ecosystem
and use it as the framework to systematically analyze LEV issues and propose strategies to
overcome barriers to LEV adoption. In addition, the study proposes a scheme to accelerate GHG
emission reduction by inventing an LEV climate credit program to harness GHG emission benefits to
incentivize broader adoption of LEVs.