1. Fuel Economy/Consumption Moroccan Case study Center for Environment and Development For The Arab region and Europe.

2. Fuel Economy/Consumption Fuel economy (Miles per Gallon) A measure of maximum distance covered by a vehicle Fuel consumption (Liter per/ 100 km-Gallons/100 miles) Amount of fuel saved in lower ranges of MPG higher than those in higher ranges Consumer convenience

3. Vehicle Energy Efficiency Engine Losses (friction &pump) Aerodynamics & Tires Transmission Terrain Balancing shafts Bore-to-stroke ratio Weight& Fuel

4. Standards European Union Entire fleet based on mass of a vehicle Sliding scale application of standards Tightening regulations Overlooking technology USA First standards: determined solely by production level Modified Standards: Size based accounting for sales levels. Sole reliance on vehicle size

5. Driving cycle Enforcement agency Test figures presented by manufacturers Cycle based on local conditions: driving patterns and behavior, road types and elevations levels, etc. CAFÉ, NEDC, Japanese and South Korean.

6. Approach and limitations GFEi definition of LDVs Sales of new LDVs in the study years. Data obtained from manufacturers through an automotive markets consultant Official figures for co2 emissions and fuel economy/consumption are used based on NEDC Data was not obtained for 1% of new LDVs. Parallel market sales were not obtained

7. Total Number of Vehicles on the Road

8. LDVs sales

10. Moroccan Macro Indicators Motorization rates (Vehicles per 1000 inhabitants): 81- 84 much higher than Egypt and Moroccan (OICA, 2012) Urbanization rate: 57.7 %, considerably higher than Egypt’s and lower Tunisia’s GDP per capita at PPP : more than $6,600 for 2011- 2013 (CIA, 2014) Average GDP growth from 1999 to 2014: 4.43

11. Moroccan Trends Explanation Motorization rate correlates with urbanization rate Constant increase in total number of vehicles on the road New LDVs sales show steady increase Rate of increase lower than Egypt’s ? +

12. Policy Environment VAT ranges between 7 and 20% in two schemes for imported and domestic cars, lower than Tunisia’s. In 2012 customs on European cars were levied. 17.5% for Asian cars and a lower rate for American one due to FTA Free competition between authorized dealers due to government strategy of encouraging vehicles ownership Less intense subsidy system

13. Policy Environment Registration fees proportional to horsepower Annual taxes for different horsepower ranges on a sliding scale Luxury cars subject to additional taxes function of cost

14. Fuel economy/Consumption data

15. Fuel economy/consumption data

16. CO2 Emissions Data

17. CO2 Emissions data

18. Trends Fuel consumption/economy lower than both OECD and non-OECD averages of 7-8 Liter/100km levels for 2005, 2008 and 2011 levels. Weighted harmonic averages for fuel consumption/economy for diesel LDVs were always few decimal points above 4 liters/100 km LDVs and CO2 emissions data display similar patterns Fuel economy/consumption of diesel LDVs is lower than petrol’s LDVs Weighted average co2 emissions for 2009 were considerably higher than those for 2012 and 2013.

19. Trends Diesel LDVs comprise average passenger cars. Weighted average diesel LDVs were higher than unweight average in 2009 Weighted average petrol LDVs were lower than unweight one in 2009 Trend set on a course of reversal as of 2012

20. Explanation Less intense subsidies, lower diesel pump prices and gender preferences are raising the levels of fuel efficiency-consciousness in Morocco. They curb the impact of slashed tariffs. Predominance of European cars thus capitalizing on increasingly stringent European standards Higher weighted average co2 emissions in 2009 due to the sale of certain models, not sold in 2012 & 2013, associated with high co2 emissions levels. Gender preferences affect the trends.

21. Needs

22. Opportunities Export orientation sets limits on the introduction of strict local fuel economy standards. Focus on European markets can pull towards more technologically sophisticated LDVs Government support to automotive industry gives some leverage in regulating the market. Investment charter and liberalized LDVs market rule out import restrictions A combination of registration fees and vehicles taxations are already in place. Increasing democratization, providing venues for a transparent, across-the- board societal dialogue.

23. Way Forward Introduction of weight & engine-sized based criteria into the vehicle tax system Development of policies directed at promoting energy- efficient technological attributes. Drawing on international expertise in developing the abovementioned policies.

24. Way Forward Linking policies to attainable fuel consumption savings in absolute terms

25. Recommendations Establishment of a multi-stakeholder resident committee to prepare a roadmap for the introduction of fuel economy standards Drawing on international expertise in advising the committee on preparation and implementation of standards and import restrictions linked to accruing fuel savings.