Skip to main content

News in:  BM | TH | CN

18 November 2024

Asian Trucker Forum: The Electrified Malaysian Transport Industry, Part 5: Regulatory Framework

Electrification of transportation, especially through the use of electric trucks and buses, requires a robust regulatory framework that addresses various technical, economic, environmental, and social aspects. This framework must be comprehensive and adaptable, considering the complexity of integrating electric vehicles (EVs) into existing transportation and energy systems. Below key components should be part of such a regulatory framework.

Standards for Vehicles and Infrastructure
Regulatory bodies must establish clear performance and safety standards for electric trucks and buses. This includes vehicle range, battery safety, durability, and operational efficiency. Given the heavy loads these vehicles carry and the distances they travel, regulations should focus on ensuring that battery systems can handle such demands without compromising safety.

Without strict safety standards, there is a risk of accidents, fires, or mechanical failures, which could hinder public and industry trust in electric heavy vehicles. Uniform standards for the design and deployment of charging stations, including plug types, voltage levels, and grid connectivity, are critical. Interoperability between different manufacturers and service providers is necessary to avoid a fragmented market that could slow adoption. Inconsistent charging infrastructure can create logistical bottlenecks for operators, increasing downtime and operational costs.

Grid Readiness and Energy Management
The increased electricity demand from electric trucks and buses requires regulators to ensure that power grids can handle large-scale EV deployment. Policies must encourage grid upgrades and expansion, especially in areas where transportation hubs (e.g., depots, highways) are located.

A lack of grid readiness could lead to energy shortages, outages, and inefficiencies in electricity distribution, making it hard for fleets to rely on electric trucks and buses. Regulation should promote smart grids and V2G technologies, which allow electric vehicles to return excess energy to the grid during peak hours. This can optimize energy use, reduce strain on the grid, and provide financial incentives for fleet operators.

Without smart grid technologies, the electrification of transportation could lead to imbalanced load management and higher costs for energy providers and consumers.

Incentives and Funding
Governments need to offer subsidies, tax credits, and rebates to encourage the adoption of electric trucks and buses. This can offset the higher upfront costs of EVs and the infrastructure needed to support them. Additionally, providing funding for research and development (R&D) can stimulate innovation in battery technology and energy management systems.

Without sufficient financial incentives, the adoption rate of electric trucks and buses could lag, as fleet operators may find traditional internal combustion engine (ICE) vehicles more cost-effective in the short term. Regulators could foster partnerships between the public and private sectors to share the costs of building EV infrastructure and developing clean energy solutions. Collaboration can also ensure that policy development is informed by the needs and capacities of different stakeholders.

A lack of collaboration could result in a slow rollout of necessary infrastructure and uneven geographic coverage, particularly in rural or underserved areas.

Environmental and Emission Regulations
Clear emission reduction mandates, such as zero-emission zones (ZEZ) or fleet-wide CO2 caps, should be established to push the transition from diesel or gasoline trucks to electric vehicles. Regulators must ensure that electric trucks and buses meet stringent environmental standards, focusing on lifecycle emissions, including the sourcing of raw materials for batteries.

If emission standards are too lenient or poorly enforced, the environmental benefits of electrifying transportation may not be realized, undermining efforts to combat climate change.

As the number of electric trucks and buses increases, so will the demand for battery recycling and proper disposal. Regulators must mandate responsible recycling practices and develop infrastructure for safely managing end-of-life batteries.

Failure to establish battery recycling regulations could result in environmental degradation, increased waste, and resource scarcity (particularly rare materials like lithium and cobalt).

Operational Regulations and Workforce Transition
Electric trucks and buses require different technical skills for operation, maintenance, and repair. Regulations must ensure that workers receive proper training and certification to safely and efficiently handle EV technology. This could include new licensing categories for drivers and technicians.

Without proper workforce training, there could be operational inefficiencies, safety risks, and a shortage of skilled workers capable of maintaining electric fleets.

Rules governing the routing of electric trucks, such as restrictions based on battery range and charging station availability, should be considered. Additionally, fleet operators will need guidelines on integrating electric vehicles into existing logistics frameworks.

Market and Competition Regulation
The regulatory framework must ensure a competitive market for electric trucks, buses, and related infrastructure. This includes preventing monopolistic practices in the energy and charging station sectors and encouraging innovation among vehicle manufacturers and service providers.

If regulatory bodies do not ensure fair competition, it could lead to market dominance by a few players, higher costs for fleet operators, and slower technology adoption.

For regions with significant cross-border trade (such as the EU), harmonizing regulations across countries is essential. This includes standardizing vehicle specifications, charging systems, and emission regulations.

Inconsistent regulations across borders could hinder international trade and complicate the operations of logistics companies that operate in multiple jurisdictions.

Social Equity and Accessibility
Electrification must not exacerbate existing inequalities in access to transportation. Regulatory frameworks should ensure that low-income and underserved communities benefit from cleaner and more affordable transportation options, including electric buses for public transit.

If regulatory frameworks do not address social equity, the benefits of electrification could be disproportionately distributed, favouring wealthier regions and groups.

While the upfront cost of electric trucks and buses is high, regulation can help control the cost curve by fostering innovation and scaling production. Measures to control energy prices and charging fees are also necessary to keep the operational costs of electric vehicles competitive with fossil fuel alternatives.

If the regulatory framework does not consider affordability, fleet operators and consumers might resist the transition due to financial constraints, slowing adoption.

Conclusion
A regulatory framework for the electrification of trucks and buses must balance various factors: safety, grid capacity, market competition, and social equity, while also focusing on reducing emissions. Policymakers should focus on flexible yet robust standards that encourage innovation and incentivize early adoption, while also addressing potential logistical and infrastructure challenges. Without comprehensive regulation, the transition to electric trucks and buses could face significant barriers, delaying progress toward environmental and public health goals.

Electrifying Malaysia’s Transportation
Asian Trucker is organising the Asian Trucker Forum, an upcoming conference dedicated to the evolving landscape of electric trucks and buses. As a leader in the industry, your company plays a pivotal role in shaping the future of sustainable transportation. We would like to invite you to become a sponsor for this significant event.

Event Overview:

  • Date: 16 May 2025
  • Venue: Setia City Convention Centre
  • Theme: Pioneering the Future of Transportation

This conference will bring together industry experts, policymakers, and key stakeholders to address the challenges and opportunities presented by the adoption of electric vehicles in the commercial sector. It will be an excellent platform for companies like yours to showcase innovations, share insights, and explore real-world use cases that can serve as valuable learning experiences for others in the industry.

Supported by: