GFEI impacting vehicle fuel economy policy around the world

March 9, 2018

The Global Fuel Economy Initiative (GFEI) is continuing to drive policy change around the world towards cleaner, more efficient vehicles, including recent progress in Peru, South Africa and Ukraine.

GFEI has rapidly expanded the number of countries it supports since the Paris Climate Change Conference in November 2015, in recognition of the urgent need to reduce CO2 emissions from transport (which contributes around a quarter of total emissions). GFEI combines in-depth analysis, policy expertise and lesson-sharing to help countries put in place new measures to accelerate fuel economy improvements.

GFEI is a partnership hosted by the FIA Foundation, combining leading experts such as the International Council on Clean Transportation (ICCT) and UN Environment, as well as local partners, who work with countries to support policy change. Even since GFEI released its latest update report at the UN climate change talks in Bonn in November 2017, a number of countries have made further fuel economy policy progress:

Ukraine exempts EVs from VAT
In Ukraine, the Parliament has adopted a provisional exemption on value-added tax and excise tax for all electric vehicles (EVs) for 2018. The government announced the policy in November 2017 at a GFEI workshop in Kiev, and it was introduced in January. A more comprehensive regulation is currently being developed to create a sustainable environment for electric mobility in Ukraine, as well as creating favourable conditions for investment opportunities in the market. Rob de Jong, Head UN Environment’s Air Quality and Mobility team, a GFEI partner, welcomed the news, saying “Countries that embrace electrification first will enjoy the greatest benefits. Policymakers are moving on this issue, and Ukraine is the latest example of an early adopter.”

South Africa identifies potential CO2 savings
In South Africa, the International Council for Clean Transportation (ICCT), funded by the FIA Foundation, has recently completed a report which assesses current fuel economy trends, and sets out options for improvement. The analysis shows that South Africa could potentially reduce its vehicle CO2 emissions by over a quarter – resulting in an annual reduction of 11.1 Mt CO2 by 2050.

Peru workshop explores policy options
GFEI has been working with the government of Peru to develop options for new fuel economy policies. Between 2005 and 2015, annual sales of passenger cars in Peru increased by more than 9 times, a 25% annual increase. In January 2018, the Ministry of Environment of Peru held a workshop in Lima to discuss proposals for taxes and other incentives to promote cleaner and efficient vehicles in the country. Representatives of four Peruvian ministries— Economy and Finance, Environment, Energy, and Transport—participated in the workshop led by the ICCT and Centro Mario Molina. The workshop identified the need for Peru to improve its vehicle approval system and revise the existing vehicle taxation system to promote efficient vehicles and advanced technologies. The collaboration between four Peruvian government agencies shows the positive momentum behind promoting cleaner and efficient vehicles in Peru.

This was originally posted on the FIA Foundation website here.