Improving Fuel Economy in Southeast Asia

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1 Improving Fuel Economy in Southeast Asia Bert Fabian, Programme Officer, Transport Unit, UN Environment 29 March 2017, Bangkok, Thailand

2 UN Environment Promoting Sustainable Low Emissions Transport Avoid Shift Improve Africa Sustainable Transport Forum develop and adopt action plans in Africa for sustainable and low emissions transport Share the Road (StR) promote and develop nonmotorized transport policies Global Fuel Economy Initiative (GFEI) double vehicle fuel efficiency by 2050 E-Mob supporting electrification of the vehicle fleet Partnership for Clean Fuels and Vehicles (PCFV) reduce emissions from light-duty vehicles Reducing Emissions from Heavy-Duty Vehicles Clean Ports reduce emissions from port activities StR

3 Cars a growing reality in emerging and developing markets Motor vehicles ~ 1 billion today over 2.5 billion by 2050 Number of vehicles * %+ of growth in developing, emerging economies Opportunity for energy efficiency, green economy innovation Source: IEA

4 Half a billion vehicles in ASEAN in Source: ITPS and CAA, 2014

5 Increasing CO 2 emissions from transport

6 Doubling the efficiency of the global car fleet by 2050 Slowing improvement in OECD countries Increasing improvement in non-oecd but not enough Still far from meeting the GFEI target Source: IEA/ GFEI, 2017

7 High average fuel economy in ASEAN countries? Brazil China Canada EU 9.0 India Japan Lge/100 km normalized to NEDC ASEAN 2015 Mexico Brazil Saudi Arabia Japan China India EU South Korea United States? Mexico United States Indonesia Philippines Singapore Myanmar Laos Saudi Arabia South Korea Malaysia Thailand Vietnam Cambodia Brunei Source: UNEP, 2017 (unpublished).

8 Average fuel economy in new cars in ASEAN is relatively high New cars by size by country in 2015 Source: IEA/ GFEI, Working Paper 15

9 Fuel economy policies & instruments Target group: Consumer Monetary Fiscal instruments FE Consumer information Labelling Regulatory Fuel economy or CO 2 emission standards Manufacturer

10 Liters per 100 kilometers (L/100km) normalized to NEDC Test Cycle Fuel economy policies can work substantially Baseline Light-Duty Vehicle Fuel Economy and Trends for New LDVs Algeria Bahrain Chile China Costa Rica Cote d'ivoire Egypt Ethiopia EU Georgia Indonesia Japan Kenya Mauritius Montenegro Morocco Peru Philippines Sri Lanka Tunisia Uganda Uruguay US Source: UNEP, 2017 (unpublished). 10

11 Hybrid and Electric cars in Sri Lanka Hybrid and electric cars in 2014 was 56% of the total number of cars Hybrid-petrol, petrol and diesel vehicles attract 58%, 253% and 345%, respectively, in excise tax Fully electric vehicles are levied at 25%. 11

12 Age-based taxation scheme in Kenya New fuel economy policy included in new budget presented by treasury June 2015 to parliament Adopted an age-based taxation system that will raise the tax for imported second-hand vehicles older than 3 years 150% and reduce tax to 30% for vehicles younger than 3 years Bill also provides tax breaks for vehicles with smaller and more efficient engines 12

13 CO2-based Feebate Scheme in Mauritius Feebate scheme in 2011 = fee on cars above 158 CO2g/km starting from 55$ per g/km to 137$ per g/km for cars over 290 CO2 g/km and a rebate starting from 27$ per g/km for cars with CO2 ratings from 91 to 158 CO2g/km and 82$ for cars from 90 CO2g/km and below From 7l/100km in 2005 to 5.8l/100km in 2014 and rapid increase of new hybrid vehicle sales from 337 in 2011 to 1418 in

14 Direct Fuel Economy Policies in ASEAN Member Countries 14

15 Feebate Scheme in Singapore National Environment Agency to introduce the Vehicular Emissions Scheme (VES) to replace the Carbon Emissions- Based Vehicle Scheme (CEVS) for all new cars, taxis and newly imported used cars with effect from 1 January Source: Singapore Land Transport Authority, 2017

16 Vehicle Labeling in Viet Nam Seven-seater cars and smaller ones are required to carry energy rating labels Labeling for those with more than seven seats to nine seats will be voluntary until December 31, 2017 and for motorcycles until December 31, 2019 and required on cars from January 1, 2018 and motorcycles from January 1,

17 Labeling and CO 2 -based Tax in Thailand Vehicle excise tax rates in Thailand combines CO2 ratings and engine capacity Mandatory ecosticker Types of Vehicles Passenger vehicles cars and vans with less than 10 seats ~~~~~~ Electric vehicle/ fuel cell CO2/ engine capacity Fuel type / Tax rates E10/ E20 E85/ NGV 100 g/km g/km g/km >200 g/km >3,000 cc ,000 cc (180 Kw) > 3,000 cc (180 Kw) Hybrid 17 Source: Energy Policy and Planning Office and Department of Alternative Energy Development, 2015

18 Regional Roadmap and Policy Guidelines for Fuel Economy for the ASEAN High growth rate of passenger car sales (and other vehicles) with relatively high fuel economy Implementing fuel economy can substantially reduce CO2 emissions supporting the Paris Agreement, Also reduces fossil fuel consumption and national expenditures on fossil fuels Improves air quality through adoption of more advanced vehicles and technologies A Regional Roadmap and Policy Guidelines can provide harmonized policies in the region in support of the ASEAN Community Optimize resources in developing fuel economy policies in the ASEAN and its member countries 18

19 Dogs do not actually prefer bones, it s just that no one ever gives them meat African Proverb 19

20 Thank you Bert Fabian, Economy Division, Transport Unit

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