Improving fuel economy and integrating electric vehicles Air Quality & Mobility Unit March 2018
Global Fuel Economy Initiative
Doubling LDV Fuel Efficiency Worldwide 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
Fuel Economy Policy Options VEHICLE FUEL EFFICIENCY STANDARDS FISCAL MEASURES MARKET-BASED APPROACHES Introduce and regularly strengthen mandatory standards Establish and harmonize testing procedures for fuel efficiency measurement. Fuel taxes and vehicle taxes to encourage the purchase of more fuel-efficient vehicles. Infrastructure support and incentive schemes for very fuel-efficient vehicles. Voluntary programs such as U.S. SmartWay and other green freight programs INFORMATION MEASURES Vehicle fuel economy labels Improving vehicle operational efficiency through eco-driving and other measures. Source: ICCT
Liters per 100 kilometers (L/100km) normalized to NEDC Test Cycle Fuel economy policies can work! Baseline Light-Duty Vehicle Fuel Economy and Trends for New LDVs 14 12 10 8 6 4 2 0 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 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Japan Kenya Mauritius Montenegro Morocco Peru Philippines Sri Lanka Tunisia Uganda Uruguay US 5 Source: UNEP, 2017 (unpublished).
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% Revised excise tax focused on cc and kwh car ratings by 2018
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 raised the tax for imported second-hand vehicles older than 3 years with an additional 2,000$ and reduced tax by 1,500$ for vehicles younger than 3 years New fuel economy based tax scheme under consideration for 2018
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 2013 Feebate scheme suspended and country will shift to CO 2 tax by 2018
Electric cars in the vehicle stock (millions) To meet 2 scenario, 20% of all road vehicles must be electric-powered by 2030 (IEA) 140 million 160 140 120 100 Historical IEA 2DS Paris Declaration 80 60 40 20 1.26 million 13 million 20 million 100 million 0 2010 2015 2020 2025 2030 Projections indicate that a MAJOR disruption is needed to increase electric mobility uptake IEA 4DS EVI 2020 target Cumulative country targets
UN Environment Electric Mobility Programme New global programme by UN Environment to foster the uptake of electric mobility It targets the reduction of energy use, greenhouse gas and air pollutant emissions from the transport sector The focus is on transitional and developing countries Together with regional partners, UN Environment supports the development of adequate policy packages, the set-up of pilot projects as well as strategies to finance the transformation towards electric mobility and promote regional replication and outreach 10
UN Environment Electric Mobility Programme (2) Electric two and three wheelers Economically viable Technically mature No dedicated charging infrastructure required High growth rates of two wheeler market in Asia and Africa Electric Mobility Electric light duty vehicles Close to breakeven with conventional cars Technically mature Highest mitigation potential of global transport energy use and emissions Linked with GFEI Electric buses Close to breakeven on high capacity lines High potential to improve local air quality Manageable recharging infrastructure requirements Linked with CCAC
UN Environment Electric Mobility Programme (3) How we work Development of local manufacturing Development of policies WE SUPPORT Development of market studies and costbenefit-analyses Interested countries approach UN Environment to support Electric Mobility projects Together, we develop the project and seek for funding We sign agreements with local partners Ministries, government agencies Non-government organizations Academia Together with technical support from strategic partners, the project will be executed Development of finance schemes Set-up of pilot projects 12
Global Environment Facility on Global EV Shift GEF expression of interest, project under elaboration between UNEP and IEA. Strong alignment with the EV30@30 Campaign, esp. on capacity building items. Opportunity to widen EVI reach (Latin America, Africa, Central and South-East Asia, and Central and Eastern Europe) Funding structure and function - Global funding: USD 5-6 million over 3-4 years - Targeted funding for in-country work (USD 15-20 million) - Co-funding commitments from public and private sector ongoing Global project (policy matrix) Vehicles (by mode) Chargers National Local Power system + pilot (selected countries) Country projects Country X Country Y Country Z GEF
Thank you Bert Fabian Air Quality and Mobility Unit Economy Division bert.fabian@un.org www.unep.org