Motor Vehicle Fuel Efficiency - GHG Savings under the Kyoto Protocol

1. European Commission/ACEA
Voluntary Agreement on Vehicle
Carbon Emissions
Briefing to the
DG Committee on
Motor Vehicle Fuel Efficiency
Angelo Mangatal
Manager, New Motor Vehicle Fuel Efficiency
Natural Resources Canada (NRCan)

2. Background of EU
Vehicle Fleet Characteristics
• Since 1975:• Vehicle performance has increased
27% and Vehicle efficiency has increased 44%
• Diesel share 35% and growing
Consumer Usage and Affordability
• 19 minutes of net work to buy a gallon of gas
• VMT has declined 11% since 1975

3. OEM CAFÉ Compliance
• Vehicle choice and operating behaviors are
• aligned through a demand side policy
• European luxury brands have routinely paid
• NHTSA fines in US market
Foreign Oil
• Rising North Sea production has reduced
foreign oil dependency

4. Background
• European automobile manufacturers
association, ACEA, entered a voluntary
agreement with the European Commission
to reduce the CO2 emissions from new light
duty passenger vehicles
• fleet wide targets of 140 g CO2/km by
2008, the “U.S. equivalent” mpg ratings of the
European fleet will likely be higher than 41 mpg if
the targets are met

5. The Code’s Highlights
• the 140g CO2/km goal is a collective target,
not a target for each individual company
• participants in the agreement – BMW, Fiat,
Ford of Europe, GM Europe, Daimler
Chrysler, Porsche, PSA Peugeot Citroen,
Renault, Rolls Royce, Volkswagen, and
Volvo - have not defined individual
objectives

6. Highlights cont…
• agreement includes a promise to introduce
some models emitting 120g/km (~48 mpg)
or less by 2000, and a nonbinding 2003
target range of 165 – 170 g/km (~34-35
mpg).
• In addition, the commitment will be
reviewed in 2003, with the aim of moving
towards a fleet goal of 120 g/km by 2012.

7. Requirements
• the industry asked that a number of conditions be met:
2008 CO2 emissions goal
• Clean fuels availability. Because the industry believes
that direct injected engines will play a key role in
achieving the targets
• Protection against unfair competition. Non-ACEA
members must commit to similar goals
• Regulatory “cease fire”
• Unhampered diffusion of technologies. The companies
assume that the commission will take no action that would
hamper the diffusion of individual corporate plans on
introducing new technology to the market

8. Requirements cont’d…
• Japanese Automobile Manufacturers
Association (JAMA)
• Korean Automobile Manufacturers
Association (KAMA)
• Both have agreed to a revised version of the
ACEA targets
• achievement of the 2008 target levels in
2009.

9. Technology Development
• Engine efficiency will be improved by:
– direct injected gasoline and diesel engines.
– Presumably, this could include tighter emissions
standards on NOx and particulates.
– The agreement also incorporates a statement that might
be seen as an escape hatch: on the basis of the outcome
of the monitoring, or if the impacts of this commitment
on the European automotive industry, particularly its
employment situation and its global competitive
environment, are detrimental, ACEA and the
commission will review the situation and make any
necessary adjustments in good faith

10. Fuel Efficiency –
Australia vs. Canada
Passenger Car Fuel Efficiency
6
6.5
7
7.5
8
8.5
9
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
L/100km
Australia Australia Canada Canada Canada CAFC
8.3
7.7
6.5
6.815%
18%
10%
6.3

11. Government Assistance
• In December last year, the Government announced
a $4.2 billion assistance package over 10 years for
the automotive industry with an emphasis on
innovation and R&D
– $1 billion to car and component R&D
– $150 million for auto manufacturers investing in new
and innovative technologies
• The Australian government will maintain but
gradually decrease tariffs on foreign passenger
motor vehicles
– In 1987, this tariff was 60%, currently it is 15%
– The tariff will be 10% by 2005 and 5% by 2010

12. Australia–Canada Comparison
Australia - 2001
• Population of 19.4 million
• Between 1997 and 2001,
GDP grew by 3.8% on
average
• Budget balance as % of
GDP – 0.01
• 529,452 passenger cars
sold
• The transportation sector
accounts for almost 20%
of GHG emissions
Canada - 2001
• Population of 31.1 million
• Between 1997 and 2001,
GDP grew by 3.8% on
average
• Budget balance as % of
GDP – 2.40
• 868,188 passenger cars
sold
• The Transportation sector
accounts for 25% of GHG
emissions