"To Achieve Global Carbon Neutrality, Increase Eco-Friendly Vehicle Distribution in Developing Countries"

[Asia Economy Reporter Changhwan Lee] An analysis has emerged that not only developed countries but also developing countries need to actively promote eco-friendly vehicles to achieve global carbon neutrality.

On the 1st, the Korea Automotive Technology Institute released a report titled "Challenges and Implications for Promoting Eco-Friendly Vehicles in Developing Countries," stating that since the transportation sector in developing countries, as well as major countries leading carbon neutrality, affects the global climate, the participation of developing countries is also important to achieve carbon neutrality goals.

According to the report, among the approximately 10 million electric vehicles distributed worldwide so far, 94% were sold in the markets of 12 major countries including the United States, Canada, Korea, China, Japan, and Europe.

Last year, due to the impact of COVID-19, CO2 emissions in developed countries decreased by about 10%, but the reduction rate in emerging markets and developing countries was only 4%, and emissions in the transportation sector even showed an increasing trend.

The International Council on Clean Transportation (ICCT) has forecasted that if developing countries maintain their current policies, carbon dioxide emissions could increase by 0.5 to 2.5 times compared to last year by 2050.

Accordingly, some developing countries have recently presented ambitious promotion targets and various incentives to expand eco-friendly vehicle adoption.

Indonesia has set a goal to have 20% of its total vehicle production be electric and hybrid vehicles by 2025. Thailand plans to electrify 30% of two- and three-wheelers, compact cars, and buses produced by 2030 and exempt electric vehicles from taxes.

However, higher prices compared to internal combustion engine vehicles and a lack of charging infrastructure are acting as obstacles to expanding eco-friendly vehicle adoption.

Indonesia set a goal last year to build 180 electric vehicle charging stations but managed to construct only 27, and in Colombia, half of the 69 charging stations are concentrated in the capital region and major cities.

Therefore, the report emphasized that to expand eco-friendly vehicle adoption in developing countries, customized local strategies linked to used car export strategies are necessary.

Researcher Jihyung Lee of the Korea Automotive Technology Institute explained, "Considering the purchasing power of developing countries, promoting eco-friendly vehicles centered on new cars is currently difficult," adding, "Strengthening quality and safety certifications for domestic used eco-friendly vehicles could activate used eco-friendly vehicle exports."

Lee also added, "Considering the characteristics of developing countries with high demand for two- and three-wheelers, off-road vehicles, and public transportation, it is necessary to identify demand for new models suitable for local conditions and support related research and development."

This content was produced with the assistance of AI translation services.