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Future Fuel Strategies: 40+ countries developing light-duty vehicle fuel economy standards

Fuels market analyst Tammy Klein notes that more than 40 countries are developing light-duty vehicle fuel economy standards. Ten years ago, only four governments 10 years ago had introduced mandatory GHG emission and/or fuel economy standards: China, Japan, South Korea, and the United States. The European Union and Canada had announced their intention to introduce such standards though neither had a legislative framework in place.

Global LDV Fuel Efficiency Improvement

Global_Fuel_Efficiency_Oct2018v2

Today, Klein says, Brazil, Canada, China, the EU, India, Japan, Mexico, Saudi Arabia, South Korea, and the US have established fuel economy or GHG emission standards for light-duty vehicles (LDVs). All are among the top 15 vehicle markets worldwide: nearly 80% of new LDVs sold globally are currently subject to some kind of GHG emission or fuel economy standards. Several countries have set heavy-duty vehicle fuel economy standards as well.

Several countries in the last year—including Kenya, Chile, the Philippines and Thailand—have implemented LDV fuel economy policies. In addition, more than 40 countries are now in the process of developing LDV fuel economy standard policies that will be implemented in the next few years.

Many of these countries are in Africa where urbanization, motorization, vehicle miles traveled and oil demand are increasing.

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