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Global Best Practices 

in Fuel Economy Policies"
Vicente Franco, Peter Mock!
ICCT Europe!
Improving fuel economy and reduction of
emissions from road transport in Russia!
17-18 June 2014, Moscow!
The ICCT: mission and activities	

The mission of ICCT is to
dramatically improve the
environmental
performance and
efficiency of cars, trucks,
buses and transportation
systems in order to
protect and improve public
health, the environment,
and quality of life. 	

§  Non-profit research
organization"
§  Air pollution and climate
impacts"
§  Focus on regulatory
policies and fiscal
incentives "
§  Activity across modes
including aviation and
marine"
§  Global outreach, with
special focus on largest
markets	

Slide 2	

www.theicct.org"
"
ICCT works in top vehicle markets
worldwide to provide high level research"
4	

Fuel efficiency / CO2 standards are
working well…"
Mandatory CO2 regulation in the EU
works very well; on a good way to 2020"
6	

Good progress in the US as well…

(example: high-selling passenger cars in the US, 2010 to 2014)"
12!
13!
14!
15!
16!
17!
18!
19!
20!
3.7! 3.8! 3.9! 4.0! 4.1! 4.2! 4.3! 4.4! 4.5! 4.6!
Fueleconomy(km/l)!
Vehicle footprint (m2)!
2014 4-cylinder sedans!
2010 4-cylinder sedans!
Fusion!
2012!
2013!
2014!
2015!
2016!
Accord!
Camry !
Mazda 6!
Mazda 6!
i-eLOOP!
Altima!
7	

Designing a FE / CO2 standard"
Some key points to consider when 

introducing fuel economy policies"
1.  Regulated metric 

(fuel consumption, GHG, CO2, well-to-tank, well-to-wheel, …)"
2.  Form of target curve + underlying attribute

(flat, steps, continuous, … weight, footprint, …)"
3.  Target / limit value

(level of ambition)"
4.  Penalties

(what happens if targets are missed?)"
5.  Accompanying measures

(labeling, taxation, …)"
6.  On-road compliance

(are reductions also realized in “real-world” driving?)"
Some key points to consider when 

introducing fuel economy policies"
1.  Regulated metric 

(fuel consumption, GHG, CO2, well-to-tank, well-to-wheel, …)"
2.  Form of target curve + underlying attribute

(flat, steps, continuous, … weight, footprint, …)"
3.  Target / limit value

(level of ambition)"
4.  Penalties

(what happens if targets are missed?)"
5.  Accompanying measures

(labeling, taxation, …)"
6.  On-road compliance

(are reductions also realized in “real-world” driving?)"
10
Country/Region
 Regulated metric
Program details, reduction in
CO2-per-distance emissions 
European Union#
 CO2 emissions (CO2/km)
40% reduction, MY 2008-2020
EU NEDC
United States
Fuel economy (mi/gal)
 42% reduction, MY 2010-2025
U.S. FTP
GHG emissions (CO2e/mi)
Japan#
 Fuel economy (km/L)
30% reduction, MY 2010-2020
Japan JC08
China#
 Fuel consumption (L/100km)
14% reduction, MY2008-2015
EU NEDC cycle
Canada
 GHG emissions (CO2e/mi)
24% reduction, MY 2009-2016
U.S. FTP
South Korea
Fuel economy (km/L)
 12% reduction, MY 2012-2015
U.S. FTP
CO2 emissions (CO2/km)
Mexico
 Fuel economy (km/L)
12% reduction, MY 2011-2016
U.S. FTP
India
 Fuel economy (km/L)
20% reduction, MY 2010-2020
NEDC for low powered vehicles
#: Separate standards established for light-commercial vehicles"
Some key points to consider when 

introducing fuel economy policies"
1.  Regulated metric 

(fuel consumption, GHG, CO2, well-to-tank, well-to-wheel, …)"
2.  Form of target curve + underlying attribute

(flat, steps, continuous, …, weight, footprint, …)"
3.  Target / limit value

(level of ambition)"
4.  Penalties

(what happens if targets are missed?)"
5.  Accompanying measures

(labeling, taxation, …)"
6.  On-road compliance

(are reductions also realized in “real-world” driving?)"
12
Country/
Region
Regulated metric
 Attribute
 Form
Categories, classes,
other provisions
Fuel
Economy
Fuel
Consumption
CO2/GHG
 Weight
 Footprint
 Class
 Continuous
 Bins
European
Union#
 X
 X
 X
Eco-innovations,
super-credits
United States
 X
 X
 X
 X
 X
2WD, AC credit, FFV/
E85, alternative fuels
Japan
 X
 X
 X
 Averaging within bins
China
 X
 X
 X
 X
Transmission, per-
vehicle limits à
corporate average
Canada
 X
 X
 X
 X
AC credits, alternative
fuels
South Korea*
 X
 X
 X
 X
 Eco-innovations
Mexico
 X
 X
 X
 X
India
 X
 X
 X
#: CO2 standards complemented by air-conditioning, tyre pressure monitoring, gear-shift indicators etc."
* : FE/CO2 standards include consideration for tyre pressure monitoring, gear-shift indicators "
EU CO2 standard for passenger cars"
13
50
75
100
125
150
175
200
500 750 1000 1250 1500 1750 2000 2250 2500 2750 3000
gCO2/km
Mass of the Vehicle in Running Order (kg)
EU 2015 and 2020 target curves
2020: T = 95 + 0.0333 *(M-M0)
2015: T = 130 + 0.0457 *(M-1372)
China Phase IV standards based on corporate averaging

(Jan 2014 proposal)"
14
Comparison of target slopes for different markets"
15
2017 and 2025 US Cars and Light-Truck Standards"
16
100
150
200
250
300
350
400
35 40 45 50 55 60 65 70 75 80
GreenhouseGasEmissions(gCO2e/mile)
Footprint (Sq. Ft)
2025 Cars
2025 L-T
2017 Cars
2017 L-T
1 Sq. meter = 10.764 Sq. feet
17	

Weight-based system strongly reduces weight
reduction incentive; not technology neutral"
vehicle weight [kg]
CO2 

[g/km]
 60% target line
-100 kg
-6 g/km
-100 kg
-6 g/km
Weight-based target system
60% target line
vehicle size [m2]
Footprint-based target system
If manufacturer applies weight
reduction, most of the CO2-
reduction effect is taken away
from him due to now more
stringent CO2 target
Manufacturer fully benefits from
the CO2-reduction effect of
lightweighting
Some key points to consider when 

introducing fuel economy policies"
1.  Regulated metric 

(fuel consumption, GHG, CO2, well-to-tank, well-to-wheel, …)"
2.  Form of target curve + underlying attribute

(flat, steps, continuous, … weight, footprint, …)"
3.  Target / limit value

(level of ambition)"
4.  Penalties

(what happens if targets are missed?)"
5.  Accompanying measures

(labeling, taxation, …)"
6.  On-road compliance

(are reductions also realized in “real-world” driving?)"
Comparison of GHG reduction targets 

for passenger cars across the world"
Comparison of GHG reduction targets:

Annual reduction rates (light-duty vehicles)"
EU 2011: 135
EU 2020: 95
US 2011: 217
US 2025:109
Japan 2010:127
Japan 2020: 105
China 2010: 180
China 2015: 167
40
60
80
100
120
140
160
180
200
220
240
260
280
2000
 2005
 2010
 2015
 2020
 2025
GramsCO2perKilometernormalizedtoNEDC
EU
 US-LDV
 Japan
 China
[1]$China's$target$reflects$gasoline$fleet$scenario.$If$including$other$fuel$types,$the$target$will$be$lower.$$
[2]$US$and$Canada$lightAduty$vehicles$include$lightAcommercial$vehicles.$
[3]$Annual$rate$is$calculated$using$baseline$actual$performance$and$target$values.$
China 2020: 117
Annual reduction rate %
4.8%$
4.2%$
3.8%$
1.9%$
US$(2011A2025)$
China(2010A2020)$
EU(2011A2020)$
Japan(2010A2020)$
Some key points to consider when 

introducing fuel economy policies"
1.  Regulated metric 

(fuel consumption, GHG, CO2, well-to-tank, well-to-wheel, …)"
2.  Form of target curve + underlying attribute

(flat, steps, continuous, … weight, footprint, …)"
3.  Target / limit value

(level of ambition)"
4.  Penalties

(what happens if targets are missed?)"
5.  Accompanying measures

(labeling, taxation, …)"
6.  On-road compliance

(are reductions also realized in “real-world” driving?)"
Some key points to consider when 

introducing fuel economy policies"
1.  Regulated metric 

(fuel consumption, GHG, CO2, well-to-tank, well-to-wheel, …)"
2.  Form of target curve + underlying attribute

(flat, steps, continuous, … weight, footprint, …)"
3.  Target / limit value

(level of ambition)"
4.  Penalties

(what happens if targets are missed?)"
5.  Accompanying measures

(labeling, taxation, …)"
6.  On-road compliance

(are reductions also realized in “real-world” driving?)"
CO2 labeling example: United Kingdom!
Brazil 2017 INOVAR-AUTO Tax Incentive
24
174.4
100
120
140
160
180
200
220
240
700 900 1100 1300 1500 1700 1900 2100 2300
CO2Emissions(E22FTP75ing/km)
Vehicle Mass (kg)
2017 INOVAR-AUTO Target
MJ/km = 1.155 + 0.000593*M
~ 146 g/km CO2
2% additional tax reduction
MJ/km = 1.067 + 0.000547*M
~ 135 g/km CO2
1% additional tax reduction
MJ/km = 1.111 + 0.000570*M
~ 140 g/km CO2
Note: All CO2 values measured on FTP (City) cycle.
Equivalent combined city-highway values will be ~12% lower.
Some key points to consider when 

introducing fuel economy policies"
1.  Regulated metric 

(fuel consumption, GHG, CO2, well-to-tank, well-to-wheel, …)"
2.  Form of target curve + underlying attribute

(flat, steps, continuous, … weight, footprint, …)"
3.  Target / limit value

(level of ambition)"
4.  Penalties

(what happens if targets are missed?)"
5.  Accompanying measures

(labeling, taxation, …)"
6.  On-road compliance

(are reductions also realized in “real-world” driving?)"
26	

Growing gap between type-approval and real-
world fuel consumption / CO2 emission values"
27	

Some final thoughts…"
Global CO2 emissions stabilized by car efficiency
standards in 2025, despite doubling of vehicles

"
Source: ICCT Global Transportation Roadmap model!
Efficiency measures show greatest effect. Mode shift / activity reduction
potential estimated to be significantly smaller."
Efficiency standards are working around the globe,
ICCT as knowledge hub for local governments"
Adopted and “Pipeline” emission reductions from policies that ICCT is working on."
30	

Vicente Franco
(030) 847.129.109
vicente@theicct.org
www.theicct.org!
§  ICCT Passenger Vehicles website: http://www.theicct.org/passenger-vehicles "
§  ICCT Staff blog: http://www.theicct.org/blogs/staff"
§  Global Passenger Vehicle Standards Update:
http://www.theicct.org/global-passenger-vehicle-standards-update "
§  US CAFE Standards: http://www.theicct.org/policies/us-cafe-standards "
§  EU LDV CO2 Regulation: http://www.theicct.org/policies/eu-light-duty-vehicle-co2-regulation "
§  Review and Comparative Analysis of Fiscal Policies to promote fuel economy:
http://www.theicct.org/review-and-comparative-analysis-fiscal-policies "
§  CO2 Standards: http://www.theicct.org/issues/co2-standards "
More information …"
Thank you

"
Vicente Franco, Peter Mock, Joshua Miller!
ICCT Europe!
Improving fuel economy and reduction of
emissions from road transport in Russia!
17-18 June 2014, Moscow!
спасибо

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Global Best Practices in Fuel Economy Policies.Vicente Franco, Peter Mock, ICCT Europe

  • 1. Global Best Practices 
 in Fuel Economy Policies" Vicente Franco, Peter Mock! ICCT Europe! Improving fuel economy and reduction of emissions from road transport in Russia! 17-18 June 2014, Moscow!
  • 2. The ICCT: mission and activities  The mission of ICCT is to dramatically improve the environmental performance and efficiency of cars, trucks, buses and transportation systems in order to protect and improve public health, the environment, and quality of life.  §  Non-profit research organization" §  Air pollution and climate impacts" §  Focus on regulatory policies and fiscal incentives " §  Activity across modes including aviation and marine" §  Global outreach, with special focus on largest markets  Slide 2 www.theicct.org" "
  • 3. ICCT works in top vehicle markets worldwide to provide high level research"
  • 4. 4 Fuel efficiency / CO2 standards are working well…"
  • 5. Mandatory CO2 regulation in the EU works very well; on a good way to 2020"
  • 6. 6 Good progress in the US as well…
 (example: high-selling passenger cars in the US, 2010 to 2014)" 12! 13! 14! 15! 16! 17! 18! 19! 20! 3.7! 3.8! 3.9! 4.0! 4.1! 4.2! 4.3! 4.4! 4.5! 4.6! Fueleconomy(km/l)! Vehicle footprint (m2)! 2014 4-cylinder sedans! 2010 4-cylinder sedans! Fusion! 2012! 2013! 2014! 2015! 2016! Accord! Camry ! Mazda 6! Mazda 6! i-eLOOP! Altima!
  • 7. 7 Designing a FE / CO2 standard"
  • 8. Some key points to consider when 
 introducing fuel economy policies" 1.  Regulated metric 
 (fuel consumption, GHG, CO2, well-to-tank, well-to-wheel, …)" 2.  Form of target curve + underlying attribute
 (flat, steps, continuous, … weight, footprint, …)" 3.  Target / limit value
 (level of ambition)" 4.  Penalties
 (what happens if targets are missed?)" 5.  Accompanying measures
 (labeling, taxation, …)" 6.  On-road compliance
 (are reductions also realized in “real-world” driving?)"
  • 9. Some key points to consider when 
 introducing fuel economy policies" 1.  Regulated metric 
 (fuel consumption, GHG, CO2, well-to-tank, well-to-wheel, …)" 2.  Form of target curve + underlying attribute
 (flat, steps, continuous, … weight, footprint, …)" 3.  Target / limit value
 (level of ambition)" 4.  Penalties
 (what happens if targets are missed?)" 5.  Accompanying measures
 (labeling, taxation, …)" 6.  On-road compliance
 (are reductions also realized in “real-world” driving?)"
  • 10. 10 Country/Region Regulated metric Program details, reduction in CO2-per-distance emissions European Union# CO2 emissions (CO2/km) 40% reduction, MY 2008-2020 EU NEDC United States Fuel economy (mi/gal) 42% reduction, MY 2010-2025 U.S. FTP GHG emissions (CO2e/mi) Japan# Fuel economy (km/L) 30% reduction, MY 2010-2020 Japan JC08 China# Fuel consumption (L/100km) 14% reduction, MY2008-2015 EU NEDC cycle Canada GHG emissions (CO2e/mi) 24% reduction, MY 2009-2016 U.S. FTP South Korea Fuel economy (km/L) 12% reduction, MY 2012-2015 U.S. FTP CO2 emissions (CO2/km) Mexico Fuel economy (km/L) 12% reduction, MY 2011-2016 U.S. FTP India Fuel economy (km/L) 20% reduction, MY 2010-2020 NEDC for low powered vehicles #: Separate standards established for light-commercial vehicles"
  • 11. Some key points to consider when 
 introducing fuel economy policies" 1.  Regulated metric 
 (fuel consumption, GHG, CO2, well-to-tank, well-to-wheel, …)" 2.  Form of target curve + underlying attribute
 (flat, steps, continuous, …, weight, footprint, …)" 3.  Target / limit value
 (level of ambition)" 4.  Penalties
 (what happens if targets are missed?)" 5.  Accompanying measures
 (labeling, taxation, …)" 6.  On-road compliance
 (are reductions also realized in “real-world” driving?)"
  • 12. 12 Country/ Region Regulated metric Attribute Form Categories, classes, other provisions Fuel Economy Fuel Consumption CO2/GHG Weight Footprint Class Continuous Bins European Union# X X X Eco-innovations, super-credits United States X X X X X 2WD, AC credit, FFV/ E85, alternative fuels Japan X X X Averaging within bins China X X X X Transmission, per- vehicle limits à corporate average Canada X X X X AC credits, alternative fuels South Korea* X X X X Eco-innovations Mexico X X X X India X X X #: CO2 standards complemented by air-conditioning, tyre pressure monitoring, gear-shift indicators etc." * : FE/CO2 standards include consideration for tyre pressure monitoring, gear-shift indicators "
  • 13. EU CO2 standard for passenger cars" 13 50 75 100 125 150 175 200 500 750 1000 1250 1500 1750 2000 2250 2500 2750 3000 gCO2/km Mass of the Vehicle in Running Order (kg) EU 2015 and 2020 target curves 2020: T = 95 + 0.0333 *(M-M0) 2015: T = 130 + 0.0457 *(M-1372)
  • 14. China Phase IV standards based on corporate averaging
 (Jan 2014 proposal)" 14
  • 15. Comparison of target slopes for different markets" 15
  • 16. 2017 and 2025 US Cars and Light-Truck Standards" 16 100 150 200 250 300 350 400 35 40 45 50 55 60 65 70 75 80 GreenhouseGasEmissions(gCO2e/mile) Footprint (Sq. Ft) 2025 Cars 2025 L-T 2017 Cars 2017 L-T 1 Sq. meter = 10.764 Sq. feet
  • 17. 17 Weight-based system strongly reduces weight reduction incentive; not technology neutral" vehicle weight [kg] CO2 
 [g/km] 60% target line -100 kg -6 g/km -100 kg -6 g/km Weight-based target system 60% target line vehicle size [m2] Footprint-based target system If manufacturer applies weight reduction, most of the CO2- reduction effect is taken away from him due to now more stringent CO2 target Manufacturer fully benefits from the CO2-reduction effect of lightweighting
  • 18. Some key points to consider when 
 introducing fuel economy policies" 1.  Regulated metric 
 (fuel consumption, GHG, CO2, well-to-tank, well-to-wheel, …)" 2.  Form of target curve + underlying attribute
 (flat, steps, continuous, … weight, footprint, …)" 3.  Target / limit value
 (level of ambition)" 4.  Penalties
 (what happens if targets are missed?)" 5.  Accompanying measures
 (labeling, taxation, …)" 6.  On-road compliance
 (are reductions also realized in “real-world” driving?)"
  • 19. Comparison of GHG reduction targets 
 for passenger cars across the world"
  • 20. Comparison of GHG reduction targets:
 Annual reduction rates (light-duty vehicles)" EU 2011: 135 EU 2020: 95 US 2011: 217 US 2025:109 Japan 2010:127 Japan 2020: 105 China 2010: 180 China 2015: 167 40 60 80 100 120 140 160 180 200 220 240 260 280 2000 2005 2010 2015 2020 2025 GramsCO2perKilometernormalizedtoNEDC EU US-LDV Japan China [1]$China's$target$reflects$gasoline$fleet$scenario.$If$including$other$fuel$types,$the$target$will$be$lower.$$ [2]$US$and$Canada$lightAduty$vehicles$include$lightAcommercial$vehicles.$ [3]$Annual$rate$is$calculated$using$baseline$actual$performance$and$target$values.$ China 2020: 117 Annual reduction rate % 4.8%$ 4.2%$ 3.8%$ 1.9%$ US$(2011A2025)$ China(2010A2020)$ EU(2011A2020)$ Japan(2010A2020)$
  • 21. Some key points to consider when 
 introducing fuel economy policies" 1.  Regulated metric 
 (fuel consumption, GHG, CO2, well-to-tank, well-to-wheel, …)" 2.  Form of target curve + underlying attribute
 (flat, steps, continuous, … weight, footprint, …)" 3.  Target / limit value
 (level of ambition)" 4.  Penalties
 (what happens if targets are missed?)" 5.  Accompanying measures
 (labeling, taxation, …)" 6.  On-road compliance
 (are reductions also realized in “real-world” driving?)"
  • 22. Some key points to consider when 
 introducing fuel economy policies" 1.  Regulated metric 
 (fuel consumption, GHG, CO2, well-to-tank, well-to-wheel, …)" 2.  Form of target curve + underlying attribute
 (flat, steps, continuous, … weight, footprint, …)" 3.  Target / limit value
 (level of ambition)" 4.  Penalties
 (what happens if targets are missed?)" 5.  Accompanying measures
 (labeling, taxation, …)" 6.  On-road compliance
 (are reductions also realized in “real-world” driving?)"
  • 23. CO2 labeling example: United Kingdom!
  • 24. Brazil 2017 INOVAR-AUTO Tax Incentive 24 174.4 100 120 140 160 180 200 220 240 700 900 1100 1300 1500 1700 1900 2100 2300 CO2Emissions(E22FTP75ing/km) Vehicle Mass (kg) 2017 INOVAR-AUTO Target MJ/km = 1.155 + 0.000593*M ~ 146 g/km CO2 2% additional tax reduction MJ/km = 1.067 + 0.000547*M ~ 135 g/km CO2 1% additional tax reduction MJ/km = 1.111 + 0.000570*M ~ 140 g/km CO2 Note: All CO2 values measured on FTP (City) cycle. Equivalent combined city-highway values will be ~12% lower.
  • 25. Some key points to consider when 
 introducing fuel economy policies" 1.  Regulated metric 
 (fuel consumption, GHG, CO2, well-to-tank, well-to-wheel, …)" 2.  Form of target curve + underlying attribute
 (flat, steps, continuous, … weight, footprint, …)" 3.  Target / limit value
 (level of ambition)" 4.  Penalties
 (what happens if targets are missed?)" 5.  Accompanying measures
 (labeling, taxation, …)" 6.  On-road compliance
 (are reductions also realized in “real-world” driving?)"
  • 26. 26 Growing gap between type-approval and real- world fuel consumption / CO2 emission values"
  • 28. Global CO2 emissions stabilized by car efficiency standards in 2025, despite doubling of vehicles
 " Source: ICCT Global Transportation Roadmap model! Efficiency measures show greatest effect. Mode shift / activity reduction potential estimated to be significantly smaller."
  • 29. Efficiency standards are working around the globe, ICCT as knowledge hub for local governments" Adopted and “Pipeline” emission reductions from policies that ICCT is working on."
  • 30. 30 Vicente Franco (030) 847.129.109 vicente@theicct.org www.theicct.org! §  ICCT Passenger Vehicles website: http://www.theicct.org/passenger-vehicles " §  ICCT Staff blog: http://www.theicct.org/blogs/staff" §  Global Passenger Vehicle Standards Update: http://www.theicct.org/global-passenger-vehicle-standards-update " §  US CAFE Standards: http://www.theicct.org/policies/us-cafe-standards " §  EU LDV CO2 Regulation: http://www.theicct.org/policies/eu-light-duty-vehicle-co2-regulation " §  Review and Comparative Analysis of Fiscal Policies to promote fuel economy: http://www.theicct.org/review-and-comparative-analysis-fiscal-policies " §  CO2 Standards: http://www.theicct.org/issues/co2-standards " More information …"
  • 31. Thank you
 " Vicente Franco, Peter Mock, Joshua Miller! ICCT Europe! Improving fuel economy and reduction of emissions from road transport in Russia! 17-18 June 2014, Moscow! спасибо