Accelerating electric car rollout in Bangladesh requires strong policy backing: Report

Bangladesh's target to popularise electric cars and unconditionally reduce 3.39 million tonnes of carbon dioxide (CO2) emissions from road transports by 2030 requires further policy support than is currently established, says a report by Institute For Energy Economics And Financial Analysis (IEEFA).

"The economic burden of air pollution in Bangladesh, for which transport is one of the major reasons, calls for strong policy-level intervention to increase the adoption of electric cars," says the report written by Shafiqul Alam, IEEFA's Energy Finance Analyst for Bangladesh.

Despite the significant increase in electric three-wheelers, the country struggles to gain traction in the electric car market due to factors such as affordability, insufficient charging facilities, and limited incentives, according to the report.

Importing electric cars is expensive in Bangladesh because of the Customs duty and supplementary duty of 72% and 20%, respectively, while there are no local alternatives.

The report urges the government to reduce import duties for electric vehicles, waive the proposed surcharge on the second car if it is an electric one, and provide tax benefits to electric car owners.

"In addition to creating demand for electric cars through policy support, charging facilities should be readily available for car owners away from home to allow them to enjoy long-distance travel," the report adds.

Finally, the report recommends that the government devises well-coordinated policy measures alongside the imperative of achieving the NDC goal of mitigating CO2 emissions.