Vijian Paramasivam
Cambodia’s government is showing a strong commitment to reducing air pollution and increasing clean energy by introducing electric mobility. Electric cars, electric three-wheelers, and mopeds are making their way into the Cambodian market, with over 700 electric vehicles (EVs) already registered in the country, according to the Ministry of Public Works and Transport.
The recent Electric Mobility Showcase 2023, organized by EnergyLab and held at the Institute Technology of Cambodia, is an emblem of Cambodia’s earnest efforts in expanding the EV sector.
Cambodia is proud to be among those partners in proactively looking forward to electric mobility solutions to support our national greenhouse gas commitments and development aspirations, set within the need for a clean energy transition, said Ministry of Environments General Secretariat of National Council for Sustainable Development Secretary-General Vann Monyneath.
Vann Monyneath went on to emphasize the nations collaboration with international bodies such as the UNDP, the World Bank, and the National Institute of Green Technology, stating that these partnerships provide the requisite strategy and ambition to make great strides forward.
He also highlighted the importance of the Electric Mobility Showcase, saying, It is the forum to build partnership and action the next steps of this electric journey.
Promoting Electric Mobility to Mitigate Future Challenges
The showcase aimed to promote electric mobility to mitigate challenges like rising air pollution, greenhouse gas emissions, and dependence on imported fossil fuels.
The government is pulling in the right direction. We have several ministries working on roadmaps with development partners. The government is very open to financial assistance, technical assistance and both to develop economies of scale and reduce greenhouse gas emissions, Energy Lab Program Lead Michael Renfrew told The Cambodia Investment Review.
Cambodia’s dedication to green mobility was further demonstrated by reducing import duties on electric vehicles in 2021 by 50 percent, compared to traditional engine-vehicles. It’s part of a broader goal to achieve 40 percent electric cars and urban buses, and 70 percent electric motorbikes by 2050.
Despite these efforts, roadblocks remain. The lack of charging stations, battery safety concerns, weak consumer confidence, absence of attractive financing schemes, and competition with affordable secondhand vehicles are hindering the penetration of EVs.
Incentivizing The Sector Is a Must For Adoption
Shomi Kim, Global Green Growth Institute country representative of Cambodia, stressed the need for tax incentives, saying, Cambodia has some tax incentives but they are still minimal, we need a little more support to accelerate the penetration of e-vehicles. Tax incentives should also be given to financial institutions so they can lower the interest rates for buyers.
Read more: Is Cambodia ready for the upcoming Electric Vehicle revolution?
She also advocated for reducing the cost of electricity for charging stations as a means to incentivize the sector.
Deputy Director-General of the Ministry of Economic and Finance, Vuthika Hang, explained that under the new Law of Investment 2021, the government offers generous incentives, including a nine-year tax holiday for investors.
The new law is quite generous. EVs adoption is low in the country because consumers still have low confidence in EVs, there is limited infrastructure, no skill (technicians) to do repairs, and our income level is still low, so people cannot afford EVs, he said.
The transition to electric mobility in Cambodia is a determined push, marked by progressive policy initiatives and strong collaboration between government and private stakeholders. The commitment is clear, the roadmap is in place, and the nation seems poised to overcome the existing challenges in its pursuit of a cleaner, sustainable transport future.
