Ministry of Economy, Trade and Industry, Japan JCM Feasibility Study for low carbon city development through introduction of E- jeepney in Metropolitan Manila Region, Republic of the Philippines Final report March 2017 Oriental Consultants Global Co., Ltd. Table of contents Chapter 1 Project overview ..................................................................................................................... 1 1.1 Project objective and background .............................................................................................. 1 1.2 Study overview ........................................................................................................................... 2 1.2.1 Overview of candidate sites for battery swapping electric jeepney technology introduction ......................................................................................................................................................... 2 1.2.2 Survey implementation structure ......................................................................................... 4 1.2.3 Survey schedule ................................................................................................................... 5 1.2.4 Survey items ........................................................................................................................ 8 Chapter 2 Trends in related policies and EV markets in the Philippines ................................................ 9 2.1 Situation of transport sector in the Philippines .......................................................................... 9 2.1.1 Situation of the Philippines and Metropolitan Manila Region ............................................ 9 2.1.2 Situation of air pollution (Situation of air pollutants emissions) ...................................... 11 2.2 Transport policy ....................................................................................................................... 12 2.2.1 Relationship with development plan and other policies in the Philippines and Metropolitan Manila Region ......................................................................................................... 12 2.2.2 Masterplan in transport sector in the Philippines and Metropolitan Manila Region ......... 14 2.2.3 Situation of traffic congestion mitigation, laws on pollution prevention and relevant regulations, etc. ............................................................................................................................. 15 2.2.4 Situation of countermeasures related to traffic congestion mitigation and environmental pollution prevention in the Philippines (Regulations and countermeasures against exhaust gas and air pollution at level of national government, Metropolitan Manila Region and other municipalities) ............................................................................................................................... 18 2.3 Climate change policy .............................................................................................................. 23 2.4 Support measures for introduction of battery swapping electric jeepney technology in the Philippines ..................................................................................................................................... 27 2.5 Trend of EV market in the Philippines ..................................................................................... 38 2.6 GHG emission trends in the Phililppines (Overall emission and transport sector) .................. 41 Chapter 3 Result of consideration for Battery Swapping Electric Jeepneys introduction in Metropolitan Manila Region in the Philippines .................................................................................... 42 3.1 Selection of potential project sites ........................................................................................... 42 3.2 Overview of battery swapping electric jeepney technology .................................................... 51 3.3 Specification of battery swapping electric jeepneys for introduction in the Philippines .......... 54 3.3 Project implementation strucuture in commercial operational phase ...................................... 56 3.4 Consideration on project cost and financial plan ..................................................................... 59 3.5 Appraisal of environmental impact of electric jeepney introduction ....................................... 61 3.6 Roadmap for battery swapping electric jeepneys introduction in the Philippines including Metropolitan Manila Region ............................................................................................................. 73 Chapter 4 Result of Seminar on Battery Swapping Electric Vehicles Technology and the Joint Crediting Mechanism ............................................................................................................................ 78 4.1 Seminar overview ..................................................................................................................... 78 4.2 Comments and feedbacks from seminar participants and revision of project plan .................. 80 Chapter 5 Policy proposal for battery swapping electric jeepney technology introduction under the JCM ....................................................................................................................................................... 82 5.1 Policy proposal ......................................................................................................................... 82 5.2 Contribution to preparation of standards for modernized electric jeepneys under future Jeepney Modernization Program in consideration by Government of the Philippines ..................... 83 Chapter 1 Project overview 1.1 Project objective and background In Republic of the Philippines (hereinafter referred to as “the Philippines”), air pollution mainly from exhaust gas of automobiles as result of traffic congestion has become a serious problem mainly in major urban areas. According to Ministry of Environment and Natural Resoruces (hereinafter referred to as “DENR”), 80% of air pollution in Metropolitan Manila Region can be attributed to traffic emissions, while the other 20% is result of emissions from factories and open burning. In Metropolitan Manila Region, more than 6,000 jeepneys take part of public transportation system. A large part of them has become obsolete after more than 20 years of its operational period, and are lack of proper maintenance. This situation results in emission of black smoke including particulate matter 10 microns or less in diameter (hereinafter referred to as “PM10”) and total suspended particles (hereinafter referred to as “TSP”). This air pollution represents a threat to the citizens’ lifestyle and health, requiring introduction of low emission vehicles for air pollutants emission reduction as an urgent agenda. Also, the old jeepneys require frequent reparis by jeepney operators, bringing the operators economic loss, and this is regarded as a challenge for transport sector in the Philippines. At present, electrification program for 3-wheel veicle for public transportation system for citizens (hereinafter referred to as “tricycle”) had been promoted by Department of Energy (hereinafter referreed to as “DOE”) as an iniative for low carbon transport with support from Asian Development Bank (ADB). The program originally had a target of electrification of 100 thousand tricycles by the end of 2017, and was cancelled in December 2016 due to higher cost compared to conventional tricycles. In this situation, electrification of jeepneys with larger size in comparison with tricycles has further financial barriers as unit price of electric jeepney body is more expensive than electric tricycles. Furthermore, prevailed electric jeepneys in process of promotion in the Philippines at stage of March 2017 adopt heavy lead-acid batteries with short crusing distance; manual battery swapping puts workers heavy burden and the lead- acid batteries, with crusing distance of approximately 10 kilometers per charge, do not have enough power output. Based on understanding of above challenges and problems, Oriental Consultants Global Co., Ltd. (hereinafter referred to as “OC Global”), PUES Corporation (hereinafter referred to as “PUES”) and International Center for Environmental Technology Transfer (herein after referred to as “ICETT”) conducted a commissioned study on potentials of promotion and project implementation for battery swapping electric jeepneys introduction in Metropolitan Manila Region and other regions in the Philippines under Ministry of Economy, Trade and Industry (hereinafter referred to as “METI”). The study objectives were shown below, and these three institutions have conducted field surveys and consultation activities with Electric Vehicle Association of the Philippines (hereinafter referred to as “EVAP”), the business partner in Philippine side. - To propose fiscal and/ or non-fiscal incentives for promotion of battery swapping electric jeepney technology introduction in the Philippines under the Joint Crediting Mechanism 1 (hereinafter referred to as “JCM”) between the Philippines and Japan, - To consider project plan for battery swapping electric jeepney technology introduction for Metropolitan Manila Region and other regions in the Philippines with financial incentives under the JCM, and - To make identification of challenges for battery swapping electric