moving fuel economy policy forward in thailand · page 2 definitions: fuel efficiency – fuel...

27/02/2018 ASEAN German Technical Cooperation – Transport and Climate Change

Acting Project Director

ASEAN-German technical cooperation project

“Energy efficiency and climate change mitigation in the land transport sector in the ASEAN Region”

Moving Fuel Economy Policy

Forward in Thailand

Preparation Workshop for

Nationally Determined Contribution Action Plan in Transport Sector

Friedel Sehlleier

Anantara Siam Bangkok Hotel

27 February 2018

Picture credit: digicore-australia.com.au

Definitions: Fuel efficiency – fuel economy – fuel consumption

• Fuel economy: km/l • Fuel consumption: l/100km • Fuel efficiency: MJ/pkm or MJ/tkm

Source: IEA Technology Roadmap: Fuel Economy of Road Vehicles

# Introduction - some definitions

ASEAN German Technical Cooperation – Transport and Climate Change 28/02/2018


GFEI (Global fuel economy initiative), 2016, http://www.globalfueleconomy.org/media/203446/gfei-state-of-the-world-report-2016.pdf

# Why is FE improvement important?

The global fleet of light duty

vehicles is set to

increase massively by 2050,

from around 850 million

passenger cars in 2013 to

over 2 billion by 2050, with

nearly 90% of this growth in

non-OECD countries

http://www.globalfueleconomy.org/media/203446/gfei-state-of-the-world-report-2016.pdf














Number of Vehicle under Motor Vehicle Act

Registered in Thailand as of 31 December 2016

36.12

Million


Car fuel efficiency is a “low-hanging fruit” for GHG mitigation

• Transport accounts for 23% of energy related carbon emissions

• Reducing fuel consumption (L/100km) by 50% until 2050 can save up to 33 Gt CO2 and

up to USD 8 trillion globally

Source: GFEI State of the World 2016



Ref: GIZ preliminary study based on data from Department of Land Transport

Weight Average FE of Passenger Light Duty Vehicles (PLDV) sales during 2013-2016

http://www.fiafoundation.org/media/45112/wp11-iea-report-update-2014.pdf https://www.globalfueleconomy.org/media/418761/wp15-ldv-comparison.pdf

Results from GIZ’s study (Phase I)

ASEAN German Technical Cooperation – Transport and Climate Change

Vehicle Type New sale (Top 10 ranked vehicles) Weight-averaged FC

(Lge/100km)

2013 2014 2015 2016 2013 2014 2015 2016

O01 Eco car 187,429 118,519 87,745 114,095 4.88 4.89 4.88 4.75

O02 City car, subcompact : Sedan &

Hatchback

271,018 167,522 117,548 76,447 5.99 5.98 5.78 5.85

O03 Compact car C-segment : Sedan

Hatchback Coupe Roadster

89,975 66,586 40,624 47,820 6.45 6.51 6.55 6.19

O04 : D-segment full size sedan 34,363 19,343 16,407 12,312 7.22 7.33 7.11 7.21 O05 : mini-MPV and B-SUV 42,046 41,046 50,690 39,417 7.44 6.95 6.62 6.25

O06 : MPV and SUV 10,307 10,617 14,332 13,790 8.83 7.74 7.59 7.74

O07 : PPV 58,942 48,646 69,063 60,683 9.52 9.17 8.43 8.15

O08: Single cab pickup 75,024 51,325 50,851 48,127 7.57 7.58 7.60 7.40

O09 : Extended cab pickup 278,019 206,130 168,236 176,758 7.68 7.66 7.69 7.40

O10 : Double cab (4 doors) pickup 164,650 114,385 107,986 108,602 8.65 8.60 8.58 7.96

Sub-total vehicle (% share of total

vehicle registration)

1,211,773

(93.25%)

844,119

(93.28%)

723,482

(90.88%)

698,051

(86.02%)

DLT new registers 1,299,508 904,969 796,089 811,518

Annual weight-averaged FC 6.98 7.01 7.08 6.81

# Current status of FE in Thailand

Top 4 brand of MC New sale (Collected from DLT 2016)

Weight-averaged FC (Lge/100km)

2013 2014 2015 2013 2014 2015

Brand1 1,412,238 1,261,949 1,248,402 1.80 1.81 1.73

Brand2 322,121 185,675 182,074 2.16 2.14 2.05

Brand3 4,338 1,645 1,801 2.83 2.39 2.52

Brand4 3,712 19,125 12,947 1.61 1.61 1.61

Sub-total MC (% share of total new MC registration

1,742,409 (87.17%)

1,468,394 (86.43%)

1,445,224 (88.90%)

Total new MC registration 1,998,934 1,698,984 1,625,742

Annual weight-averaged FC 1.87 1.85 1.77


Average FE of motorcycle sales during 2013-2015

Ref: GIZ preliminary study based on data from Department of Land Transport

# Current status of FE in Thailand

# FE in Thailand compared to the world

Source: GIZ

Fuel economy policies around the world

Source: GFEI State of the World 2016

• More than 80% of the global PLDV market is regulated

• Vietnam, Thailand have fuel economy policies in place, Philippines, Malaysia, Indonesia are on the way

to develop FE policies


# FE policies

Collect data of fuel

consumption of newly

sold vehicles

Analyse gaps Recommendations for improving

data collection and methodologies

Conduct inventory of

existing policies,

strategies, and plans

Meetings/workshops Individual meetings

with stakeholders


# GIZ’s study on fuel efficiency policies


# GIZ’s study on fuel efficiency policies Understand each stakeholder’s role and find the mutual interest

Industry sector

GIZ-TCC

Government sector

Academic sector

Picture credit: revistagenteqroo.com

Fuel Efficiency Targets


# FE Improvement policies and targets

27/02/2018

Fuel efficiency targets


There are 2 measurements in transport sector;

1) Increase energy efficiency in transport (with

expected reduction potential 31 Mt CO2e) and

• fuel efficiency in gasoline and diesel

engine (23 Mt- CO2e) and • Modal shift measurement (PT promotion,

intercity high speed rail) (8 Mt- CO2e)

2) Bio-fuel (with expected reduction potential 10 Mt-

CO2e)

NDC = Naturally Determined Contributions Source: NDC roadmap, ONEP


27/02/2018

Policy/Measure Organization Annual %FE

improvement Description

NDC roadmap 2564-2573 (NDC 2021-2030)

ONEP 1.56% Calculated from CO2 reduction target in transport sector by 2030

Energy Efficiency Plan (EEP 2015-2036)

EPPO 2.08% Calculated from Energy Intensity target in transport sector by 2036

Tracking project by OTP-DLT-EPPO

OTP 2.00% Assumption used in the project analysis

Fuel Economy State of the World 2016

Global fuel economy initiative (GFEI)

3.10% International target

BAU (estimated from industry)

1.00% Interview with private sector

Representative for Thailand plan ~2% Survey of FE target from various plans

27/02/2018



Dec 2012

for implementation

on 1 Jan 2016

Thailand Vehicle excise tax structure Tax Structure Before Jan’2016 Current Tax Structure

HEV-PPV ≤175 g/km= 23%

HEV-DC ≤175 g/km= 10%

EV tax=2%

Hybrid tax ÷ 2

Source: http://www.ratchakitcha.soc.go.th/DATA/PDF/2560/E/166/2.PDF

Updated on 20 June

Updated on 20 June

# Current FE policies in Thailand


Annual FE improvement =1 % (estimated from industry)

Estimated CO2 emission from registered car 2030 =89.7 MtCO2e

Estimated CO2 reduction 2030 =13.3 MtCO2e


Gap= 9.7 MtCO2e

NDC FE target 2030=

23 MtCO2e

Picture credit: spisales.com


By showing the fuel economy of the car

under consideration in relation with the

average fuel economy of all passenger

cars of that year

To allow the consumer to understand

whether the car under consideration

achieves a good, average, or poor fuel

economy.

Improve the eco sticker.

# Possible paths toward FE improvement

Pic © modified from

https://dir.indiamart.com/impcat/f

abric-label.html


• Data is a prerequisite for emission/fuel economy based policy measures

• Information should be shown to consumers to guide their purchase decision

• FE labelling is compulsory in many countries/regions: Brazil, Canada, Chile, China, EU, Japan,

Korea, New Zealand, Singapore, Thailand, United States, Vietnam

Singapore

Thailand

Vietnam

Currently included:

•Retailed price

•Excise tax rate (%)


27/02/2018

Best practices: Fuel economy labeling in US



27/02/2018

Introduce a continuous linear function to relate

vehicle specific carbon emissions (in gCO2 per km) to

the level of excise tax (instead of using the current

step function).

Raise the incentive to buy more efficient vehicles by

making the price increase for inefficient vehicles

more progressive (i.e. increase the slope of the linear

function), or even provide rebates for very efficient

cars.

Foster the uptake of plug-in hybrids and battery

electric vehicles by excluding them from the excise

tax.


Pic © http://www.kiplinger.com

Options for revision of the excise tax scheme for new vehicles.


Introduce a continuous linear function to relate vehicle specific carbon emissions (in gCO2 per km)

to the level of excise tax (instead of using the current step function)


• Market-based policy that shifts consumer purchases (and potentially manufacturer production) to lower

emission vehicles by placing a fee on higher-emitting vehicles and providing a rebate to lower-emitting vehicles

• Based on fuel economy or CO2 differential between vehicles

• Could also take into account vehicle attributes like size or weight

$

g/km CO2 0 FEE

REBATE

slope determines marginal costs and benefits

pivot point can be designed to meet revenue

goals


27/02/2018


Consider the introduction of additional fiscal measures to stimulate the use of fuel efficient vehicles.


To further incentivise the uptake of efficient

vehicles in the short term, focus on the use of

additional fuel economy-based (Lge per 100km) or

carbon emission-based (gCO2 per km) fiscal

measures instead of the complex task of

introducing fuel economy standards, e.g. an annual

carbon emission based vehicle registration tax or

an increase of the fuel tax.

Picture credit: changesfoundations.net


For more information, please visit

www.TransportandClimateChange.org

[email protected]

For more information, please visit

www.TransportandClimateChange.org

for your kind attention!

Pic © ecofiscal.ca

All information on FE study can be found at

http://www.transportandclimatechange.org/

http://www.transportandclimatechange.org/

27/02/2018

As a federal enterprise, GIZ supports the German Government in achieving its objectives in the field of international cooperation for sustainable development.

Published by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

Registered offices, Bonn and Eschborn, Germany

Energy Efficiency and Climate Change Mitigation in the Land Transport Sector in the ASEAN Region

c/o Office of Transport and Traffic Policy and Planning 35 Petchaburi Road, Thung Phaya Thai, Ratchathewi, Bangkok 10400 T +49 61 96 79-0 F +49 61 96 79-1115

E [email protected] I www.giz.de

Responsible

Friedel Sehlleier

Author(s)

Friedel Sehlleier

Nuwong Chollacoop

Gessarin Gunthawong

Photo credits

© GIZ/TCC

Layout

Gessarin Gunthawong

In cooperation with

Implemented by


mailto:[email protected]

http://www.giz.de/



GFEI (Global fuel economy initiative), 2016, http://www.globalfueleconomy.org/media/203446/gfei-state-of-the-world-report-2016.pdf














moving fuel economy policy forward in thailand · page 2 definitions: fuel efficiency – fuel...

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