Regional Workshop on Enhancing Policy Effectivity and Institutional Capacity to Accelerate High-Efficiency Vehicle Adoption in ASEAN

Published on 03 October 2025

On 25 September 2025, the ASEAN Centre for Energy (ACE) organised an online Regional Workshop on Promotion of High-Efficiency Vehicles, the second in a two-part series under the Advancing Clean Mobility: Regional Workshop on Transport System and High-Efficiency Vehicles Innovation. Building on the first workshop on transport system efficiency, this session focused on policy pathways to accelerate the adoption of high-efficiency vehicles across ASEAN. 

Organised under the ASEAN Plan of Action for Energy Cooperation (APAEC) 2021–2025, specifically Programme Area No. 4 on Energy Efficiency and Conservation (EE&C) and its Outcome-Based Strategy 4: “Pursue Energy Efficiency in the Transport Sector”, the workshop also contributes to the APAEC Milestone 2025. The discussions centred on fiscal and non-fiscal incentives, tax structures, and regulatory mechanisms designed to promote high-efficiency vehicles, equipping policymakers and stakeholders with capacity to advance clean mobility across the region. 

The event brought together representatives from the ASEAN Energy Efficiency and Conservation Sub-Sector Network (EE&C-SSN) and officials from transport ministries of ASEAN Member States (AMS), alongside distinguished delegates, partner organisations, and other stakeholders. In total, the workshop gathered 28 participants, comprising 16 men and 11 women, reflecting ASEAN’s inclusive approach to advancing sustainable and energy-efficient transport solutions. 

Photo 1. Regional Workshop Participants 

The workshop opened with remarks from Naing Naing Linn, Head of the Energy Efficiency and Conservation (EE&C) Department, ACE, and Adisak Choosuk, Deputy Director General of Thailand’s Department of Alternative Energy Development and Efficiency (DEDE), as EE&C-SSN Coordinator, who both underscored the importance of strengthening regional cooperation and policy readiness to accelerate the adoption of high-efficiency vehicles in ASEAN. 

 

Photo 2. Opening Remarks from Naing Naing Linn, ACE, and Adisak Choosuk, DEDE Thailand 

The day began with a scene-setting presentation by Arika Dhia, Officer of the EE&C Department, ACE, on the Challenges and Opportunities to Promote High-Efficiency Vehicles in ASEAN. She noted that, according to the ASEAN Fuel Economy Roadmap for the Transport Sector 2018–2025, developing effective fuel economy measures for heavy road freight transport remains complex due to the significant influence of vehicle load and trip profile. Addressing this challenge requires establishing baseline data for heavy-duty vehicles (HDVs), gradually harmonising standards, and advancing policy recommendations such as diesel fuel taxation and fuel-consumption or CO₂ emissions standards for rigid trucks and tractor-trailer combinations. 

 

Photo 3. Scene Setting by Arika Dhia, ACE 

The first session, Strategic Pathway for Advancing High-Efficient vehicles Adoption Through Fiscal and Non-Fiscal Policy Incentives in ASEAN, began with a presentation from Ng Sian Ching, Senior Manager at the National Electric Vehicle Centre, Land Transport Authority (LTA), Singapore, on Electrifying Commercial Vehicles in Singapore. She highlighted that the land transport sector is the third largest emitter, accounting for 15% of Singapore’s emissions, and has already reached its peak emissions in 2016.

As part of Singapore’s 2050 Net Zero Ambition, she outlined key strategies including promoting Walk-Cycle-Ride journeys and achieving 100% cleaner energy vehicles by 2040, supported by policies such as expanding the EV charger network, ending new ICE car and taxi registrations from 2030, and decarbonising the power grid.  

 

Photo 4. Electrifying Commercial Vehicles in Singapore by Ng Sian Ching, LTA 

Kanokwan Sengprathom, Chief of Energy Conservation Group, Thailand’s Ministry of Energy, Energy Policy and Planning Office (EPPO) presented on Thailand’s Tax Incentive Structure and Regulatory Framework for Hybrid and Electric Vehicles. She highlighted the country’s rapid EV market growth, noting that new battery electric vehicle (BEV) registrations reached 69,050 in the first half of 2025, dominated by cars and motorcycles. Cumulatively, Thailand has registered 296,813 BEVs as of June 2025, supported by policies such as tax incentives, subsidies, and regulatory frameworks that encourage adoption of both hybrid and electric vehicles across different vehicle types, including buses and trucks. 

Photo 5. Thailand’s Energy Policy and Planning Office presented on Thailand’s Tax Incentive Structure and Regulatory Framework for Hybrid and Electric Vehicles by Kanokwan Sengprathom, EPPO Thailand 

Danawiryya Silaksanti, Senior Specialist on Environmental Impact Control in the Transport Sector, from the Centre for Sustainable Transportation Management, Ministry of Transportation of Indonesia, presented on Indonesia’s Key Policies to Support High-Efficiency Vehicle Adoption. She outlined the government’s comprehensive fiscal and non-fiscal incentives to accelerate electric vehicle uptake. These include reduced type testing costs and certificate tariffs for battery-based EVs, as well as tax holidays, research and development (R&D) and vocational incentives, import duty exemptions, and investment support for EV industries. For consumers, incentives range from VAT and luxury tax reductions, purchase subsidies, and motorcycle conversion assistance to tax breaks and home-charging fee relief. Non-fiscal measures such as streamlined licensing for charging infrastructure, public–private collaboration on battery swapping stations, and special traffic policies (e.g., odd-even exemption) were also highlighted as key enablers of Indonesia’s EV transition. 

Photo 6. Indonesia’s Key Policies to Support High-Efficiency Vehicle Adoption by Danawiryya Silaksanti, Centre for Sustainable Transportation Management Indonesia 

For the final presentation of the first session, Director Patrick T. Aquino, CESO III of the Department of Energy (DOE) Philippines presented on the Philippine Transport Vehicles Fuel Economy Labelling Programme (VFELP). He explained that the initiative supports the Energy Efficiency and Conservation Act (RA 11285) by prescribing fuel economy labelling for transport vehicles. The programme aims to promote fuel savings, eliminate inefficient vehicles from the market, and reduce greenhouse gas emissions, initially covering both internal combustion engine (ICE) and electric vehicles. He further highlighted that, as of September 2025, VFELP had registered 123 companies, 114 vehicle models, and issued 50 fuel economy labels and stickers, marking a significant step towards mainstreaming energy-efficient vehicles in the Philippines. 

Photo 7. VFELP by Patrick T. Aquino, Director of DOE Philippines 

The session concluded with a focus group discussion (FGD), where participants shared experiences on strategic policies and barriers to high-efficiency vehicle adoption. They acknowledged progress through fiscal incentives, regulatory measures, and financial schemes, yet underscored persistent challenges such as high EV costs, limited charging infrastructure, fragmented policy frameworks, and low consumer awareness. To overcome these barriers, participants stressed the need for stronger regional cooperation, greater policy harmonisation, and increased investment to accelerate ASEAN’s transition towards high-efficiency and sustainable transport. 

The final session of the day, Global Insights into Regional Progress on Fuel Economy and Heavy-Duty Electrification, explored international perspectives and their relevance to ASEAN. Aditya Mahalana, Senior Researcher of the International Council of Clean Transport (ICCT), presented on ASEAN HDV Electrification, highlighting the significant contribution of HDVs to transport-related greenhouse gas (GHG) emissions in the region.

Projections show that, without intervention, well-to-wheel (WTW) CO₂ emissions from trucks and buses in ASEAN could reach over 650 million tonnes by 2050 under a baseline scenario. He stressed that accelerating HDV electrification, supported by regional policy alignment and infrastructure investment, is critical to curbing emissions and advancing ASEAN’s clean mobility transition. 

Photo 8. ASEAN HDV Electrification by Aditya Mahalana, ICCT 

Pierpaolo Cazzola, Director of the European Transport and Energy Research Centre, Institute of Transportation Studies, University of California, Davis, presented on the Implementation of the ASEAN Fuel Economy Roadmap for the Transport Sector, where he emphasised the roadmap’s vision to make ASEAN’s light-duty vehicle market among the most fuel-efficient globally by 2025. He outlined key goals, including improving average fuel consumption by 26% between 2015 and 2025, establishing regional cooperation and policy leadership, and ensuring fuel economy labelling and fiscal measures based on CO₂ emissions.  

Photo 9. Implementation of the ASEAN Fuel Economy Roadmap for the Transport Sector by Pierpaolo Cazzola, University of California, Davis 

Renee Stephenand Shane McDonagh, both Energy Efficiency Policy Analyst from the International Energy Agency (IEA) co-presented on Truck Fuel Economy Standards in ASEAN: Benefits and Capacity Building, where they emphasised the opportunities for ASEAN to adopt harmonised fuel economy standards for trucks. They explained that aligned action could provide regulatory consistency, reduce market fragmentation, and lower the costs of policy development and implementation. The presentation also outlined a policy pathway study, developed in collaboration with ACE, which will run from late 2025 to mid-2026.  

Photo 10. Truck Fuel Economy Standards in ASEAN: Benefits and Capacity Building by Renee Stephen (right) and Shane McDonagh (left), IEA 

The session then finished off with an FGD where participants shared recommendations to accelerate vehicle electrification and improve fuel economy standards in ASEAN. They highlighted the need for harmonisation of policies and standards, joint research and innovation initiatives, and coordinated infrastructure development as key enablers of regional progress. Looking ahead to the APAEC 2026–2030, participants also recommended the development of a comprehensive fuel economy roadmap, implementation of fuel economy standards, introduction of eco-labelling schemes, and promotion of fuel-switching technologies for low-carbon vehicles, including electric and hydrogen-powered options.  The workshop concluded with a summary and way forward presentation by Irma Ramadan, Senior Officer of the EE&C Department, ACE, consolidating the key insights and recommendations. The meeting noted that AMS have already implemented important policies and regulations to promote the adoption of high-efficiency vehicles, including fiscal incentives for EVs, initiatives to electrify public and heavy-duty transport, and improvements in fuel economy standards. 

The workshop emphasised that only a coordinated, ASEAN-wide approach can effectively overcome regional barriers and accelerate the uptake of energy-efficient vehicles. The focus group discussion identified common barriers among AMS, including high EV costs, inadequate charging infrastructure, limited consumer preference, small market size, restricted manufacturing capacity, and environmental concerns related to nickel mining. Therefore, the meeting recommended a collaborative pathway for ASEAN, including the harmonisation of policy frameworks and fuel economy standards, alignment of charging infrastructure, joint research and innovation initiatives, and knowledge-sharing on best practices. 

Looking ahead, participants also proposed key recommendations for APAEC 2026–2030, including the development of a regional fuel economy roadmap, the implementation of standards and eco-labelling schemes, and the promotion of fuel-switching technologies for low-carbon vehicles such as EVs and hydrogen-powered options. Strengthening regional cooperation, expanding testing and research capabilities, and aligning with the ASEAN Sustainable Transport Roadmap were highlighted as critical next steps. 

Photo 11. Summary and Way Forward by Irma Ramadan, ACE 

The workshop formally concluded with closing remarks from Naing Naing Linn, Head of the EE&C Department, ACE, who expressed heartfelt gratitude to all speakers, moderators, and participants for their active contributions. She underscored that the workshop, held under the APAEC 2021–2025, has provided a vital platform to explore fiscal and non-fiscal incentives, regulatory mechanisms, and international best practices for advancing high-efficiency vehicles in ASEAN.

Building on the first workshop on transport system efficiency, the Advancing Clean Mobility series was highlighted as a comprehensive effort to strengthen policy readiness, regional cooperation, and capacity building. She concluded by calling for continued collaboration among policymakers, industry, and development partners to ensure that clean and efficient mobility becomes a foundation for sustainability, inclusivity, and resilience in the region.