21/05/2009
The Global Fuel Economy Initiative (GFEI) welcomes the Obama Administration’s move to improve US fuel economy to 35.5 MPG by 2016. This is equivalent to 6.6 L/100km and represents a 30% reduction in fuel use compared to new US light-duty vehicles in 20051. The new approach puts the United States well on track towards reaching the GFEI 50-by-50 interim target of a 50% reduction in new car fuel economy by 2030 in OECD countries. By bringing together all principal stakeholders and agreeing on these ambitious new targets, the new Obama administration policy places the United States back at the centre of international efforts to reign in transport CO2 emissions, pollution, and energy use in road transport.
In addition to pointing toward growing global convergence on fuel economy measures, the Administration’s approach also provides a measure of predictability for auto manufacturers in the US and abroad and favors a harmonized national and regional approach. As the world heads into the climate negotiations in Copenhagen, the importance of the transport sector, and road transport in particular, cannot be overlooked. The US move acknowledges the opportunities for cost-effective near-term CO2 reductions available in this sector, and the need for similar iniativ es worldwide.
A 30% improvement in new car and light truck fuel economy by 2016 in the US is right on target to getting to a 50% improvement by 2050. If all countries were to reach these targets, the fuel efficiency of the entire world fleet – not just new cars -- could be halved by 2050
When we launched the GFEI, this is exactly the type of policy we were looking for – a policy that brings together all stakeholders, to agree ambitious targets that deliver real energy use and CO2 savings and with clarity on future fuel economy requirements so that producers know how they may best invest. This is a win-win in anybody’s book.
The US move shows us that consensus is possible to promote the production of the cleaner, more fuel efficient cars we need on the roads in the next few years. This sets a great precedent and roadmap for other countries to apply – including emerging and developing economies.
About the Global Fuel Economy Initiative
Launched on March 4, 2009 by the United Nations Environment Programme (UNEP), the International Energy Agency (IEA), the International Transport Forum (ITF) and the FIA Foundation (FIAF), the GFEI aims to catalyze and help harmonize large reductions of greenhouse gas emissions and oil use through improvements in automotive fuel economy in the face of rapidly growing car use worldwide. The GFEI targets an improvement in average fuel economy (reduction in fuel consumption per kilometre) of 50% worldwide by 2050. With complementary measures to auto fuel economy, including smart urban planning and more public and non-motorized transport in cities, this is likely to result in at least a stabilisation of CO2 emissions from the global car fleet, which would make an important contribution to meeting the CO2 targets identified by the International Panel on Climate Change (IPCC) and supported by G8 recommendations.
The benefits will also include significant reductions in oil expenditures and reductions in urban air pollution around the world - large potential benefits, which greatly exceed the expected costs of improving fuel economy. Cutting global average automotive fuel consumption (L/100 km) by 50% (i.e. doubling mileage per gallon in the US) would reduce emissions of CO2 by over 1 gigatonne (Gt) a year by 2025 and over 2 gigatonnes (Gt) by 2050, and result in savings in annual oil import bills alone worth over USD 300 billion in 2025 and 600 billion in 2050 (based on an oil price of USD 100/bbl). The GFEI proposes several steps and actions to work towards the 50:50 overall goal and each step will serve as a milestone along the way to a global achievement:
- The average fuel economy (L/100 km) of new cars in OECD countries could be improved 30% by 2020 and 50% by 2030 at low or negative cost taking into account fuel savings.
- Improvements of the same order of magnitude are possible in non-OECD countries where car fleets are growing fastest. Improving the efficiency of new cars at this rate would make possible at least a 50% improvement in the average fuel economy of all cars on the road worldwide by 2050.
The global vehicle fleet is set to triple by 2050. Over 90% of this growth will take place in developing and transition countries. Achieving ambitious, yet realistic, fuel economy targets is especially important in developing countries since most new vehicles in the world will be bought and operated in these countries by 2050. By recognising that fuel savings from more fuel efficient vehicles can save money for consumers while reducing the dependence on fossil energy, the Obama Administration fuel economy policy sets an important precedent for many developing countries whose long-term development may be constrained by high transport energy costs without a sustained effort to improve fuel economy and use cleaner vehicle technology.
1New passenger cars must achieve on average 6.0 L/100 km and light trucks 7.8 L/100 km on average in 2016, for a fleetwide average improvement of 30% compared to 2005. This is the GFEI base year for comparison.