Fuel Economy in Macedonia Stabilizing greenhouse gas emissions from road transport trough doubling of global vehicle fuel economy: regional implementation of the Global Fuel Economy Initiative – GFEI Fuel Economy in Macedonia 18-19 May 2016 Hotel “Romantik” Veles Alex Körner alex_koerner@gmx.de

Content Why fuel economy policies – motivation Some definitions Fuel economy and climate change National targets Some definitions Fuel economy – fuel consumption – fuel efficiency Fuel economy and pollutant emissions Fuel economy policies and fuel quality

Motivation

Transport sector energy use Transport energy use Transportation accounts for about a fifth of global energy use By 2050, transport energy use might almost double under a business as usual scenario Source: Based on IEA Energy Technologies Perspectives 2014

Car fuel economy is a “low-hanging fruit” for GHG mitigation Transport accounts for 23% of energy related carbon emissions Improving fuel economy by 50% until 2050 can save up to 33 Gt CO2 and up to USD 8 trillion globally Source: GFEI State of the World 2016

Better fuel economy pays back 30% fuel consumption reduction pays back after 3.5 years (44,000km, USD 1.1/L, 8L/100km base FE, no discounting, today’s technology cost) 50% fuel consumption reduction pays back after 6 years (75,000km, USD 1.1/L, 8L/100km base FE, no discounting) Source: IEA Technology Roadmap: Fuel Economy of Road Vehicles

Fuel economy context Fuel economy improvement can be achieved through Technical changes to vehicles Changing the types of vehicles bought Improving vehicle maintenance Changing the way vehicles are driven (ecodriving) Reducing traffic congestion Fuel economy improvement to vehicles should be part of a broader strategy: Traffic management City and regional planning Promotion of public transit

Typical national objectives related to fuel economy policies Reduce oil dependence (diversify fuels) Improve balance of payments Reduce pollutant emissions Reduce greenhouse gases Promote domestic economies/jobs

Fuel economy around the world – status quo

Fuel economy policies around the world More than 80% of the global PLDV market is regulated Source: GFEI State of the World 2016

New PLDV fuel consumption around the World Globally, fuel economy shows a very broad bandwidth Countries with FE policies in place show encouraging efficiency improvement Source: GFEI State of the World 2016

Some definitions

Definitions: Fuel efficiency – fuel economy – fuel consumption Fuel economy: km/l Fuel consumption: l/100km Fuel efficiency: MJ/pkm or MJ/tkm Source: IEA Technology Roadmap: Fuel Economy of Road Vehicles

Fuel consumption, CO2 emissions and pollutants Pollutant emissions include: CO, NH3, NOx, VOC, PM10, SOx Fuel consumption/CO2 emissions and pollutant emissions are two different things – a big car can have low pollutant emission (through use of catalytic converters) but high fuel consumption and CO2 emission Fuel consumption (L/100km) and CO2 emission (gCO2/km) are interchangeable, the carbon intensity (gCO2/L) of the fuel is the respective conversion factor

Fuel consumption, CO2 emissions and pollutants Gasoline vehicles are generally less polluting but also less efficient compared to diesel vehicles Pollution and fuel consumption/fuel economy targets are contradictory – more efficient engines are producing more pollutants (especially NOx and PM) and more effort is needed to clean the exhaust gas

Fuel economy and fuel quality Fuel economy, pollutant emissions and fuel quality policies are tightly connected, increasingly efficient engines are demanding increasingly higher quality fuels characterized by (among others): Absence of lead – prerequisite for exhaust cleaning using catalytic converters High octane number – necessary for engines with high compression ratios Low sulphur content – to meet pollutant emission standards

State of the art in Macedonia

State of the art in Macedonia Achieved or partially achieved: Identification of all relevant stakeholders Engagement of national and international expertise for data gathering and analysis Set-up of fuel economy baseline Communication of baseline results Alignment of fuel quality according to EU Directives Next steps: Identify and transpose EU FE policies to Macedonia, in particular Establish necessary structures for continuous data collection and monitoring process according to EU needs Align legislation on vehicle import Investigate additional FE policy measures and quantify their costs and benefits Implement a harmonized package of FE policy measures   () () ()

Thanks!