Malaysia Risk Becoming Dumping Ground For Polluting Cars - Report

Countries that are slow to adopt electric vehicles run the risk of accumulating a sizable fleet of old gasoline-powered vehicles, according to a new report by the London-based think tank Carbon Tracker, as reported by Bloomberg.

Ben Scott, senior automotive analyst at Carbon Tracker said that the automakers may resort to selling older, polluting models in Africa, Asia, and South America as China, North America, and Europe phase out internal combustion engine vehicles.

The report stated that India, Australia, Thailand, Turkey, Indonesia, Malaysia, Russia, and South Africa have weak or no targets for decarbonizing cars. As the trend towards using recycled materials for battery production grows in some places, it will be difficult for many countries to import used EVs from them.

Scott likewise warned that without clear goals to phase out petrol vehicle sales, the financial burden on developing countries will worsen. For example, Africa spends $80 billion per year on transportation fuel imports, accounting for 2.5% of its GDP.

Through policies that encourage EV adoption, Asia and South America could save more than $100 billion per year on fuel imports and reduce trade deficits.

The Carbon Tracker report also outlines the steps that governments must take to prepare for the EV transition. According to the report, the government should incentivize the shift with policies such as import bans and age restrictions on used cars, emission limits, and the elimination of EV tariffs. Increasing domestic production and recycling EVs are also important steps towards reducing transportation emissions.

Hastening the transition to battery-powered vehicles will create economic opportunities ranging from mineral mining and manufacturing to sales, infrastructure, and recycling for developing markets, according to the report.