Can carbon credits unlock Southeast Asia’s EV charging network?

Reik Ong, Founder and CEO of Saxon Renewables. Singapore’s Saxon Renewables pioneers a new model to tackle infrastructure investment gaps. (Photo: Saxon Renewables) 

As Southeast Asia embraces the global shift toward net-zero emissions, its large population and policy support have positioned the region as a promising electric vehicle (EV) market. However, the high costs of building charging infrastructure continue to slow progress. What if EV charging stations could generate carbon credits, turning environmental benefits into financial returns? This concept could be a game-changer for Southeast Asia’s EV transition. 

Singapore-based sustainability consultancy Saxon Renewables is leading this charge, launching an innovative carbon credit project for EV charging stations. In an exclusive interview with RECCESSARY, Saxon Renewables Founder and CEO Reik Ong shared his insights on Southeast Asia’s EV development challenges, and how carbon credits might help overcome them. 

Charging infrastructure bottlenecks hinder Southeast Asia’s EV ambitions 

For Southeast Asia, EV development represents a valuable opportunity to cultivate new manufacturing and industrial growth. Countries like Malaysia, Thailand, and Vietnam are actively promoting EV industries. However, global economic and geopolitical uncertainties, coupled with slow progress in charging infrastructure, are stalling the region’s so-called “EV revolution.” 

According to Ong, while local EV manufacturing exists in several countries, Chinese automakers have rapidly gained market share through aggressive pricing strategies. Still, robust charging infrastructure and grid readiness remain the essential pillars for sustainable EV market growth. 

“The current EV market in Southeast Asia is stuck in a chicken-and-egg dilemma,” Ong explained. “Consumers hesitate to buy EVs due to a lack of charging stations, while investors are reluctant to fund charging networks because EV adoption is still low. The challenging political and economic climate only deepens this investment hesitation.” 

Malaysia’s government, for instance, has set a target to build over 10,000 charging stations by 2025 and aims for EVs to account for 20% of all vehicle sales by 2030—an estimated 400,000 EVs on the road. Yet, as of now, only about 3,000 charging stations are operational, signaling significant delays. 

Similar trends are visible in neighboring countries. Thailand’s Electric Vehicle Association reported that by March 2024, the country had around 11,622 public charging points (both AC and DC). However, with 233,699 EVs registered in 2024, the vehicle-to-charger ratio stood at 1:22.6, highlighting how infrastructure lags far behind sales. Projections suggest Thailand’s EV fleet will grow to 1.1 million vehicles by 2033. 

Adding to the challenge, EV charging stations often require maintenance or land lease renewals within 5 to 7 years, even before investors recover their initial costs—making EV infrastructure an inherently high-risk venture. 

Southeast Asia’s EV market holds significant potential, driven by population growth and policy support, but infrastructure investment remains a hurdle. (Photo: iStock) 

Carbon credits: A new pathway for EV charging investment 

To break this cycle, Saxon Renewables has proposed a bold solution: quantifying the emissions reductions achieved by EV charging stations and turning them into tradable carbon credits. 

“We hope these carbon credits can be used for compliance under international frameworks like CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation), or as offsets for Singapore’s national carbon tax obligations,” Ong explained. 

Saxon’s EV charging carbon credit project completed third-party validation in March and is now awaiting final approval from Verra, a leading carbon standards organization. “The process has taken nearly a year, and we’re about 75% through. We expect to secure approval in the next two to three months and are in discussions with governments in Malaysia, Singapore, and Indonesia,” Ong added. 

Thailand already has a similar carbon credit structure in place. If Saxon’s model can expand across Southeast Asia, it could significantly improve the investment landscape for EV charging infrastructure. Taiwan is also exploring this path: in February, a domestic collaboration between Sungrow Capital and the Kaohsiung City Government launched Taiwan’s first EV charging carbon credit project, aiming to lower entry barriers for new investors. 

Ong noted growing interest from industries such as aviation and shared mobility. “Airlines are particularly keen on carbon credits applicable to CORSIA. Malaysia alone will require about 1 million tons of CORSIA-compliant credits annually, and current market supply is insufficient,” he said. 

Singapore’s carbon tax policy—already the most advanced in Southeast Asia—is also driving demand. The tax will rise to SGD 45 per ton by 2026 (approximately NTD 1,042) and further to SGD 50–80 by 2030 (NTD 1,158–1,853), yet the availability of eligible carbon credits remains limited. 

Crucially, Saxon’s carbon credits adhere to the principle of “additionality”, meaning they are only applicable in markets where EV adoption is still below 5%. This ensures the credits genuinely incentivize new investments in underdeveloped EV markets. “We hope this carbon credit framework can help mitigate the uncertainties caused by global policy volatility and restore investor confidence in the EV sector,” Ong said. 

If EV charging station operators can generate extra revenue through carbon credit trading, Ong believes it will significantly enhance project economics. This would help break the current infrastructure bottleneck, provide high-quality carbon credits for buyers, and reduce investment risks—ultimately accelerating Southeast Asia’s EV transition.