Vehicle Fuel Economy and Emission Standards

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1 National Stakeholder Consultation and Capacity Building Workshop On Development of Sustainable and Inclusive Transport Policy Vehicle Fuel Economy and Emission Standards M. Absar Alam 9-10 April, 2015 Thimphu, Bhutan

2 Rationale At Copenhagen COP- 15 in 2009, the Royal Government of Bhutan stated we commit ourselves to keep absorbing more carbon than we emit and to maintain our country s status as a net sink for Greenhouse Gases (GHG). The outcome of Rio+20, 2012 reafxirmed to implement Agenda 21 which recognises the importance of improving energy efxiciency for sustainable economic development. Fuel economy in transportation is a key component of such process. Ø Ø Ø Sustainable transport is important constituent of sustainable development, promoting economic growth and enhancing accessibility. However, transport sector is a driving factor of global energy demand. Emission from fuel combustion from the sector is increasing world over. Improving fuel efxiciency and adopting emission standards are important since consumers these days are less responsive to hikes in fuel prices than in the past.

3 Fuel Economy Fuel economy of the vehicles refers to saving in fuel per unit of distance traveled by the vehicle translating into higher unit level output (mileage) per unit of energy used. Other things remaining equal, higher the fuel consumption, there will be higher level of emissions. There are number of factors that inxluence fuel economy which include efxiciency of engine, the quality and type of the fuel used (high sulphur in diesel lowers the efxiciency of engine) and driver behaviors and driving conditions, etc. Fuel economy can be achieved through a number of measures such as use of fuel efxicient vehicles, high quality fuel, eco- driving, improved maintenance, use of improved tyres, reduced idling of vehicles and better trafxic management, etc.

4 EfXiciency Standards and Emission Standards There are two primary reasons for setting up fuel economy standards; Ø Ø Growing use of petroleum and oil security and high import bill of oil. In this case, fuel economy standards are measured in kilometre per litre (km/l) or miles per gallon (mpg) which is efxiciency standards. Other reason is tackling emission to drive climate change policy. In this case, GHG emission based standards are adopted. Thus, fuel efxiciency and emission standards are related regimes but governed by separate regulations. For example, in Europe conventional pollutants are governed through Euro Standards, whereas fuel efxiciency is governed through separate regulation by European Commission. Similarly, in US both the standards are adopted. In case of Japan, fuel efxiciency has been adopted measured in terms of km/l.

5 Vehicular Population 50,000 45,000 40,000 40,871 44,543 44,674 35,000 35,100 In Numbers 30,000 25,000 20,000 15,000 10,000 5, ,877 26,047 17,424 21,891 15,144 19,768 12,988 11, Heavy and Medium Light Vehicles and Taxi Two- Wheeler Others

6 Vehicle Type Share, % 15% 14% 66% Heavy and Medium Light Vehicles and Taxi Two- Wheeler Others

7 The Case of Bhutan There are three important dimensions with regard to Bhutan's policies to control vehicle fuel economy and emission standards. Ø Emission standards: Bhutan should adopt emission standards that have evolved in other countries like Euro/Bharat Stage Emission Standards. It is suggested that Bharat/Euro Stage IV should be Ø adopted for vehicles. EfXiciency standards: Considering the growth of vehicle, Bhutan should consider adopting efxiciency standards of countries it is importing vehicles from. Ø Emission as well as efxiciency standards needs to be complemented by fuel quality. It is required to meet the stringent requirement of emission standards (Euro/Bharat IV).

8 Bharat Stage- IV Type of Vehicles Vehicular Emission Norms CO( g/kmhr) HC (g/kmhr) NOx (g/kmhr) PM(g/kwhr) Passenger Cars Heavy Diesel Vehicles /3 Wheelers Fuel Quality Year Gasoline Deisel 2010 Sulphur 50 mg/kg Lead pb RON mg/kg pb RON 91 Sulphur 50 ppm Sulphur 10 ppm

9 Options to Improve Fuel EfXiciency/ Emission Standards Technical Fuel EfXiciency of Vehicles Regulatory Measures Fiscal Measures Import Based Fuel EfXiciency Standard Incentivise users of efxicient vehicles Technological Measures Fuel and Vehicle

10 Institutional Mechanism A Central Authority Monitoring Institutions under the Authority Coordinating Departments Pollution Control related Institution for Implementation

11 Issues and Challenges for Bhutan Implementation and monitoring regulation of efficiency/emission standards. Ø Testing of vehicles prior to import through selected testing procedure. Ø Testing of on-road vehicles. Use of other measures like fee-bates, incentives to users and devising penalties for non-compliance. Devising efficiency standards for fuel in order to effectively implement efficiency/emission standards. Resource mobilisation to fund such programmes. In case of heavy vehicles, emission standards in Bhutan will also be affected by the practices in India.

12 Way Ahead Recognising the climate concern in Bhutan, fuel economy policy needs to be in place. This should be complemented by other measures like fee- bate and vehicle labeling to restrict imports of inefxicient vehicles. Existing testing standards, like standards of India, may be used as certixication mechanism for import of vehicles from other countries. Emission standards by itself will not achieve much unless supplemented by inspection and maintenance mechanism. Discourage the private ownership of light vehicles through demand side management, taxation policies, and incentives for using public transport systems. Electricity is likely to be the future of Bhutan s economy. Electric Vehicles may be promoted as an alternate to petroleum oil- based vehicles.

13 Thank You

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