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ERIA Seminar Explores Future of Sustainable Automotive Supply Chain in Philippines

Date:
17 June 2025
Category:
News

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Manila, 17 June 2025: ERIA’s Environment Unit, in collaboration with De La Salle University (DLSU), Environweave, and e-Mobility ASAP, successfully hosted the Seminar on Vehicle Recycling in ASEAN Region: The Philippines Chapter on ERIA Publication Launching Event. This seminar aimed to disseminate ERIA’s recent publication on vehicle recycling in the ASEAN region to the Philippines’ stakeholders and explore pathways for developing a sustainable automotive supply chain in Philippine context.

The event gathered around 50 participants, including government officials, experts, environmental activists, and representatives of industry associations for next-generation vehicles (e.g. electric vehicles).

Opening Remarks

Reo Kawamura, Director for Environmental Policy at ERIA, opened the seminar and underscored the need for robust management frameworks for End-of-Life Vehicles (ELVs). He highlighted the relevance of ERIA’s new report to the forthcoming ‘Master Plan for ASEAN–Japan Co-Creation Initiative for the Next-Generation Automotive Industry’, which will be discussed in the upcoming ASEAN Economic Ministerial Meeting.

Dr Anthony Shun Fung Chiu, Vice President for External Relations and Internationalization at DLSU, underscored the role of vehicle recycling and ELV management within the Philippine legal and regulatory context, citing the efforts of the Department of Environment and Natural Resources (DENR) and the Pollution Adjudication Board (PAB). He emphasised that environmental policy should deliver a ‘win-win’ situation for the industry, the environment, and society.

Keynote Presentation

Fusanori Iwasaki, Research Fellow at ERIA, outlined challenges facing ELV management in the Philippines, such as dominance of the informal sector, regulatory and market deficiencies, limited formal infrastructure, and environmental degradation. Using the ‘Prisoner’s Dilemma’ theory, he advocated for a collective approach backed with appropriate frameworks.

Session 1: Current Situation of the Automotive Industry and Circular Economy Issues

Dr Jose Bienvenido Biona, full professor at DLSU, attributed the lack of a circular economy framework in the Philippines to the absence of a ‘push’ or engagement from stakeholders, and the lack of incentives or motivation for responsible ELV management and circular practices. He highlighted risks related to EV battery handling in the informal sector, e.g. environment and safety hazards, and called for a holistic approach and political will to set a sustainable direction for the country’s entire automotive ecosystem.

Engr. Phillip Aquino, Hazardous Waste Management Section at the DENR-EMB Central Office, provided an overview of ELV management policies in the Philippines, specifically from the perspective of hazardous waste management policy frameworks. While general frameworks for hazardous waste exist, the country lacks legal schemes specific to ELV dismantling and recycling. An accreditation system for scrapping facilities has been newly established, with one facility approved while the others in progress.  

Melissa M F Cardenas, Head Weaver at Environweave, shared findings from ERIA’s fieldwork, noting inadequate infrastructure amongst informal dismantlers in the Philippines. She also highlighted the local ‘Extended-Life of Vehicles’ culture, whereby car owners prefer to repair and reuse vehicles and parts rather than disposing of them. She illustrated this with the continued use of her father’s 1976 Mitsubishi Galant, which also challenges the conventional definition of ‘retirement’ for a vehicle, as the case blurs the line between an ELV and a continually maintained asset.

Session 2: Towards Sustainable Automotive Value Chain Development

Jenfinio ‘Pao’ Gabinete Hung, President of En Tsumugi, showed how his company is pioneering compliant ELV dismantling, recycling, and hazardous waste disposal in partnership with Japan’s Tsuruoka Co. Ltd. He noted their issuance of Certificate of Destruction and coordination with the Land Transportation Office.  

Dr Joey D. Ocon, Department of Chemical Engineering at the University of the Philippines Diliman, examined the nascent state of battery recycling in the Philippines, citing technological complexity, lack of domestic capacity, reliance on exporting batteries for proper recycling or disposal, and the need for automation. He called for (1) proactive and timely action, (2) robust and specific policies and regulations to guide battery management, (3) active private sector participation, and (4) a whole-of-society approach or collaboration.

Dr Francis Mark Quimba, Senior Research Fellow at the Philippines Institute for Development Studies (PIDS), reflected on the evolution of the Philippine automotive industry, noting a weak local supply chain and reliance on imports for components. Other challenges include the absence of ELV policy and incentives at the national level, infrastructure deficiencies, lack of awareness for sustainable behaviour amongst consumers, and inadequate workforce preparedness. He advocated for behavioural change amongst consumers, investment in workforce upskilling, and use of the Philippine Action Plan for Sustainable Consumption and Production (SCPP) as a framework of solutions.

Dr Rafaelita Aldaba, Emeritus Fellow at PIDS, focused on the policy and regulatory environment for sustainable mobility and e-mobility, referencing the EVIDA (Electric Vehicle Industry Development Act and the CREVI (Comprehensive Road Map for Electric Vehicles Industry). She also pointed to the domestic strengths in electronics manufacturing and vehicle assembly, but noted gaps in regulatory enforcement, infrastructure, and circularity systems, particularly for ELVs and EV batteries. She called for direct action to address these gaps to ensure a more holistic green transition and achieve inclusive green growth.

Closing Remarks

Reo Kawamura, Director for Environmental Policy at ERIA, summarised the discussions and thanked all participants, co-organisers, and speakers.

Atty Glynda E. Bathan-Baterina, Deputy Executive Director at Clean Air Asia, concluded the seminar with optimism. She introduced plans for a dedicated study – commissioned by e-Mobility ASAP – on the specifics of battery recycling and welcomed collaboration with ERIA, DLSU, and all other partners present. She also emphasised that end-of-life issues must be integrated the Philippines’ broader EV strategy.

The seminar concluded with a strong call to action for continued cooperation in advancing sustainable solutions for the Philippine automotive industry.

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