Improvements in vehicle fuel economy fall short of global targets

The global vehicle fleet is failing to reach fuel economy targets aimed at reducing CO2 emissions and cutting oil consumption, according to a new report from the Global Fuel Economy Initiative (GFEI) released at the Paris COP21 Climate Summit. While fuel economy is improving in OECD countries, progress is still below the rate needed to hit global targets by 2030. Meanwhile, developing countries, which are poised for massive growth in their vehicle markets, are failing to make any substantial improvements. The new study, Fuel Economy, State of the World 2016: Time for Global Action, shows that overall performance is below the 3.1% annual improvement needed to reach the GFEI target of halving fuel consumption in passenger light-duty vehicles by 2030.

The new report shows that while fuel economy is improving in OECD countries, progress is still below the rate needed to hit global targets by 2030. Meanwhile, developing countries—where vehicles markets are set to grow massively—are failing to make any substantial improvements in fuel economy, and are way off target as measured by the GFEI. The GFEI targets—which are reflected in the new global Sustainable Development Goals—include a 50% reduction in l/100km by 2030 in all new cars worldwide.

Worldwide, the vehicle fleet is not making enough progress on fuel economy and is failing to reach global targets aimed at reducing CO 2 emissions, cutting oil consumption and improving energy efficiency according to a new report from the Global Fuel Economy Initiative (GFEI) ( earlier post ) released at the Paris COP21 Climate Summit.

Energy savings in 2015 due to fuel economy policies compared to 2005 baseline. As of today, almost 1.5 EJ—the equivalent of the entire transport-related energy use of Italy—have been saved per year, compared to a case with no fuel economy improvements of new vehicles since 2005. Source: GFEI. Click to enlarge.

The new study—Fuel Economy, State of the World 2016: Time for Global Action—shows that across both OECD and non-OECD performance is below the 3.1% annual improvement needed to reach the GFEI target of halving fuel consumption in passenger light duty vehicles by 2030.

Fuel economy is improving at a rate of 2.6% on average per year in OECD countries;

On average, fuel economy is barely improving in non-OECD countries with just 0.2% improvement annually between 2005-2013;

Overall the global average annual improvement rate of fuel economy over the past decade has stayed at around 2.0% a year;

Where fuel economy policies are in place in OECD markets, the fuel economy of new vehicles improved 20% over eight years showing that progress can be made.

GFEI GFEI was launched in 2009 as a partnership of the UN Environment Programme (UNEP), the International Energy Agency (IEA), the International Transport Forum (ITF) and FIA Foundation. The International Council on Clean Transportation (ICCT) joined the partnership in 2012; the Institute for Transportation Studies at UC Davis joined in 2013. The GFEI targets are a 30% reduction in l/100km by 2020 in all new cars in OECD countries; a 50% reduction in l/100km by 2030 in all new cars globally; and a 50% reduction in l/100km by 2050 in all cars globally.

The poor performance in developing countries is a particular concern as motorization is rapidly increasing outside the OECD, the report noted. The non-OECD vehicle market is now more than 20% larger than its OECD counterpart accounting for more than 55% of passenger light duty vehicles sold.

Turning the GFEI global fuel economy targets into reality would mean by 2050 cumulative savings of: 33 Gt of CO 2 , 54 billion barrels of oil and almost $8 trillion worldwide. But much faster progress is needed.

We have brought this message to the COP because improved fuel economy is one of the most basic and costs effective ways of addressing the climate challenges which we have, and yet we are not on track to deliver on it. We need to see vastly improved progress on vehicle fuel economy worldwide if we are to get anywhere near reaching both the 2-degree global climate targets, and the new Sustainable Development Goal objective of doubling improvement in energy efficiency. Halving fuel consumption in passenger light duty vehicles by 2030 is entirely possible using widely available technologies. The technology is not the problem—it’s the policy commitment that is failing us. —Sheila Watson, Executive Secretary of GFEI



Data labels indicate percentage reduction in new vehicle CO 2 rates from 2005 to 2030. Almost 80% of light duty vehicles sold in 2030 will be regulated. Based on today’s adopted and announced fuel economy targets they will have about 27% lower specific fuel consumption (LGE/100KM) on average, compared to 2005. This is about half the improvement needed to achieve the GFEI target of reducing new vehicles fuel consumption by 50% compared to 2005. Source: GFEI. Click to enlarge.

The GFEI has mounted a global campaign to promote vehicle fuel economy improvements particularly in developing countries. The “100 for 50by50” campaign aims to get 100 countries committing to improve fuel economy. Coinciding with the Paris COP Climate Summit, the GFEI will announce that 65 countries have now signed up to hit fuel economy targets, 40 more than were engaged in this work at the time of last year’s Climate Summit.

The GFEI is also mobilizing resources to support fuel economy improvement worldwide with partners announcing new commitments of around $7 million to support this expanded program of in-country support work.