Study suggests formalizing electric vehicles for employment and revenue

The study also found that Bangladesh could save $200 million to $800 million annually by reducing air pollution caused by fuel-run traffic

 
Around 52,000 electric vehicles (EVs) and Battery-Run Three-Wheelers (BRTWs) have generated incomes for 58,000 people in the country’s five districts. 

According to a recent study titled "Electric Vehicles in Bangladesh-A Case of Battery Run Three Wheelers", there are around one million EVs currently running in Bangladesh, predominantly in district towns and rural areas. 

Conducted jointly by the Japan External Trade Organization (Jetro), Business Initiative Leading Development (BUILD), and Terra Motors Bangladesh, the study also revealed that the government can earn about Tk19.25 crore in revenue per year from registering EVs.

The cost of traveling in EVs per five kilometers is one-fourth the cost of using a rickshaw, and half that of a compressed natural gas (CNG) driven auto-rickshaw.

At a recent event held to unveil the findings of the study, Principal Coordinator of SDG Affairs at the Prime Minister’s Office, Md Abul Kalam Azad, said electric vehicles are the future of transport, "as decarbonizing the transport sector has become necessary for achieving sustainable development goals (SDGs)."

He also said that good policies have to be implemented to harness the benefits of development from these vehicles. 

Findings of the study

Data for the study was collected by conducting interviews of officials of the Bangladesh Road Transport Authority (BRTA) and city corporations of five districts—Dhaka, Rajshahi, Bogra, Gazipur, and Comilla.

The field survey revealed that around 50,000 BRTWs run in the five districts covered. 

The price of a BRTW ranges between Tk130,000 to Tk160,000. Average daily operating cost for a BRTW driver is Tk400, while his or her daily income is Tk800–1,000. 

BRTWs consume around one gigawatt (GW) of electricity per day, charged often through the domestic electricity lines in absence of charging stations. Additionally, clear monitoring and regulations, are also not present. 

The study also found that Bangladesh could save $200 million to $800 million annually by reducing air pollution caused by fuel-run traffic.

Speaking to the Dhaka Tribune, Additional Research Director of BUILD, Tahmid Zami said: "The usage of EVs will not only help reduce energy costs, but also bring down healthcare costs that many people in the country have to bear due to high pollution."

He furthered that the government will also be able to reduce its budget allocated for "reducing greenhouse gas levels to 9% by 2030."

According to a recent findings of the US Air Quality Index (AQI), Dhaka ranked second for the worst air in the world, with a score of 176.

Unrecognized and unregulated

According to the study, the government of Bangladesh neither defines nor recognizes BRTWs or EVs. 

BRTA does not issue registration, driving licence for, or permits to these vehicles, leaving local authorities to regulate the vehicles as per their own wishes. 

For example, the Rajshahi and Comilla district authorities provide registration and permits to BRTWs. 

Furthermore no national-level BRTW manufacturers or dealers' association exist, due to the absence of legal-regulatory recognition of the vehicles.

Regulatory obstacles

While presenting the findings of the study, Additional Research Director of BUILD Tahmid Zami said: "Registration, fitness certification, and fees pose an obstacle to regularizing BRTWs because all related specifications are designed for fuel-run vehicles only. 

"As there are specific policies for other types of vehicles, a separate policy for BRTWs can be useful," Tahmid opined adding that it is a "priority that BRTWs be regularized", taking into account their "economic, social, and environmental benefits."

He furthered that BRTWs can create social inclusion by enhancing mobility.

Study recommendations 

In order to help EVs thrive in Bangladesh, BUILD recommends setting up a thriving battery manufacturing sector with a supportive government policy. 

The study had eight specific recommendations for the government, which are to: include provisions in the Bangladesh Road Transport Act to address the issue of EVs and BRTWs; institute and regularize registration, certification, licensing, and permit procedures; promote eco-friendly batteries, solar panels, and recycling facilities; organize industry actors into trade associations; promote digitalization through creating an online portal for integrating vehicular information from the manufacturer to user level; install charging facilities; promote access and inclusion of women in the BRTW sector; and to promote investment—including foreign direct investment (FDI)—for BRTW manufacturing and associated activities.

BUILD also urged the the government to formulate a long term plan for manufacturing Li-ion (lithium-ion) batteries in the country by providing financial and non-financial incentives to manufacturers. 

Osama Taseer, president of the Dhaka Chamber of Commerce and Industry (DCCI) suggested subsidizing EVs to popularize their usage in the country.

He emphasized on research and development on Li-ion battery manufacturing, battery recycling, and attracting FDI for manufacturing EVs in the country. “Private sector and donor organizations have to come forward."

Speaking to the Dhaka Tribune, Munawar Misbah Moin, president of Accumulator Battery Manufacturers and Exporters Association of Bangladesh, suggested creating a policy platform including various regulatory organizations, BUILD, and private sector stakeholders. 

"Joint ventures for setting up Li-ion battery factories in Bangladesh should be considered, and the government should prevent informal battery recycling," he recommended. 
Source: https://www.dhakatribune.com

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