1. Fuel Economy in Macedonia Transfer of know-how
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 Transfer of know-how
18-19 May 2016
Hotel “Romantik” Veles
Alex Körner

2. Content
Overview of selected results from the IEA study “Technology and policy drivers of the fuel economy of new light-duty vehicles”
Case study: Turkey & South Africa
Summary and recommendations

3. FE improvement - Targets and reality
OECD: rates close to target
Non-OECD: little improvement
Global: Right trend at slow pace
2030: Improve global FE by 50%
Regions with strong FE policies saw encouraging FE improvement over the last decade

4. Average new LDV fuel economy normalized to new WLTC
Target: investigating the technology and policy drivers behind heterogeneous FE distributionc

5. Correlation 1: vehicle segment vs. FE
In general, a clear correlation between vehicle segment and FE can be observed
Especially in developing markets a trend towards larger vehicles can impede FE improvement
Countries with high vehicle and fuel taxes tend to have on average smaller cars

6. Correlation 2: powertrain technologies vs. FE
A clear correlation between dieselization/hybridisation and FE can be observed
Countries with stringent FE or CO2 emission standards tend to show better average FE

7. FE development pattern
Markets with strong FE policies see limited growth in vehicle weight and size but strong FE improvements
The opposite is true for developing markets with insufficient FE policies

8. Case study: Turkey
Fuel taxation can be a strong measure – although Turkey has no other efficient FE policies the simple fact of having the fourth highest fuel prices in the world (at moderate GDP per capita levels) lead to a impressive FE improvement over time

9. Case study: South Africa
After the introduction of differentiated vehicle taxation in 2010, specific CO2 emissions dropped by 10% until 2013
At the same time, the trend towards heavier vehicles got stopped

10. Effectiveness of FE policies
Fuel economy/CO2 emission standards force efficient vehicle technologies into the market
Vehicle taxation/feebate schemes guide consumers towards smaller and more efficient cars
Fuel taxation dampens the potential rebound effect (more driving) resulting from more efficient cars

11. Summary & Recommendations
The combined adoption of regulatory instruments, such as fuel economy standards, and fiscal incentives led to the highest energy savings from LDVs.
Fuel economy standards guaranteed effective improvements of fuel economy. Stringent targets led to the prioritisation of fuel economy improvements over other vehicle characteristics by manufacturers and consumers.
Differentiated vehicle taxation was effective even when not coupled with fuel economy standards, especially in markets with lower purchasing power.
Differentiated vehicle taxation is also generally easier to set up than fuel economy regulations: it should be prioritised, especially in developing regions.

12. Thanks!