Fuel Economy in Macedonia Policy prioritisation 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 Policy prioritisation 18-19 May 2016 Hotel “Romantik” Veles Alex Körner alex_koerner@gmx.de

Content FE policies which need to be transposed to Macedonian law when joining the EU: CO2 emissions - Data collection, communication, monitoring (FE standards) Vehicle type approval Obligatory FE label for new cars Useful FE policies independent from the process of joining the EU Feebate scheme instead of eco-tax Reformation of the annual registration tax towards a FE/emission based measure

EU FE policy requirements

1. EU fuel economy standards EU FE standards… …are community wide corporate average standards: This means that the weighted average CO2 emissions of all cars sold by a manufacturer (or a pool of manufacturers) need to be below a set target Therefore, EU wide sales data of new cars by manufacturer, model etc. needs to be collected and reported to the Commission - Regulation 443/2009/EC

Regulation 443/2009/EC Data requirements Annual collection, monitoring and communication of new sales by Manufacturer Type, variant and version; Specific emissions of CO 2 (g/km); Mass (kg); Wheel base (mm); and Track width (mm).

Regulation 443/2009/EC Data requirements This means: Part of the registration data needs to go public The relevant institutions to collect and treat the data on a continuous basis need to be put in place Additional data on vehicle mass and footprint needs to be collected All collected data need to be in-line with reporting specifications – data need to be taken from Certificate of Conformity (COC)

Regulation 443/2009/EC Data template

Barriers with respect to EU FE standards EU FE standards have no direct impact to the consumers – more efficient vehicles are forced to the market, the targets are not national targets, the manufacturers “bear the burden” The necessary authorities to collect, monitor and communicate the data according to the EU requirements need to be established  Necessary infrastructure for data collection needs to be established

2. Vehicle type approval - Directive 2007/46/EC New cars can only be registered if type approved in EU (otherwise, need to be checked by designated authority on a case by case basis) Type approval includes EURO standards for pollutant emissions – since Sep 2014 only cars compliant with EURO VI can be type approved Vehicle type approval can only be carried out at laboratories with certified know-how and equipment Type approval certificate issued by one EU member state need to be recognized by all EU members, but can be challenged in case of doubt

Bodies and authorities involved in the type approval process National type approval authorities (e.g. KBA in Germany) – national public authorities in charge of officially approving vehicles before they can be put on the EU market. Type approval is based on compliance tests performed by technical service or in-house. Technical services (TUV, UTAC, IDIADA) – Testing facilities contracted by national authorities to conduct compliance test Market surveillance authorities – national public authorities in charge of market surveillance to check that the products already available on the market are safe and not harmful to the environment Source: http://europa.eu/rapid/press-release_MEMO-16-168_en.htm

“VW diesel-gate” and type approval - consequences National type approval authorities will face closer supervision by EU Other member states will be enabled to recall vehicles type approved by another member state national laboratory Car manufacturers will not continue to directly pay the technical service to conduct tests but national authorities need to pool funds from car manufacturers for that purpose Source: http://europa.eu/rapid/press-release_MEMO-16-168_en.htm

Barriers with respect to vehicle type approval Specific equipment of the labs able to perform the numerous test for Whole Vehicle Type Approval Unless there is mutual benefit with local car manufacturers, there is no need to have all the testing capacities  The benefits of type approval processes taking place in Macedonia need to be investigates and compared to their costs

Vehicle labelling – Directive 1999/94/EC In the EU it is obligatory to display vehicle fuel consumption and CO2 emission to the consumers Label – on each car Poster – giving an overview of new cars FE/CO2 emission Guide on FE and CO2 emissions Promotional material Various examples exist – ranking of fuel efficiency based on absolute CO2/FE values (France) vs. relative values taking into account vehicle weight (Germany)

Barriers for FE labelling - enforcement Most compliance issues arouse with the label itself and the promotional material Responsibilities are scattered – different materials covered by different legislation Source: http://ec.europa.eu/clima/policies/transport/vehicles/labelling/docs/final_report_2012_en.pdf

Labelling enforcement Energy labelling can be enforced through the Market Surveillance Regulation (Regulation (EC) No 765/2008  Creation of a market surveillance authority Source: http://ec.europa.eu/clima/policies/transport/vehicles/labelling/docs/final_report_2012_en.pdf

Other useful FE policies

Vehicle taxation - State of the art 1. Eco-tax for used vehicle import Target: Control condition of used imported cars Currently, the import of used vehicles is taxed based on engine size Problem: Tax levels are low with almost no progressive increase < 1,500 cm³ 1,500-2,500 cm³ > 2,500 cm³ 40EUR 50EUR 60EUR

2. Annual vehicle registration tax Currently, different annual tax elements are based on engine size and power: Cost element Measure Cost for 1800cm³/90kW car in EUR Registration fee Lump sum 3.2 Number plate 19.2 Road tax Engine size 34.9 Communal tax 4.8 Eco tax Power 2.7 Total 65.4

Combined proposal for discussion Eco tax for import of used cars based on pollutant emission standard, with progressive increase for low EURO standards Controls influx of used imported cars One-off registration tax based on a feebate scheme Controls the size and efficiency of newly registered vehicles Can be designed as a cost neutral measure Annual circulation tax based on CO2 and pollutant emissions Stipulates the renewal of the existing fleet

Thanks