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Workshop Report: Philippine National Workshop on Clean Fuels
and Vehicles
Clean Air Initiative for Asian Cities (CAI-Asia) Center
March 2010
Philippine National Workshop on Clean Fuels and Vehicles
CONTENTS
1. INTRODUCTION ..................................................................................................................................... 1
1.1 Objectives...................................................................................................................................... 1
1.2 Design ............................................................................................................................................ 1
2. PROCEEDINGS ....................................................................................................................................... 3
2.1 Opening ......................................................................................................................................... 3
2.2 Presentations ................................................................................................................................ 3
2.3 Open forum ................................................................................................................................... 4
2.4 Action planning ............................................................................................................................. 4
2.5 Closing ........................................................................................................................................... 5
3. UPDATES AND NEXT STEPS ................................................................................................................... 6
ANNEXES ....................................................................................................................................................... 7
Annex A ..................................................................................................................................................... 7
Annex B ..................................................................................................................................................... 8
Annex C ................................................................................................................................................... 10
Annex D ................................................................................................................................................... 12
Annex E1 and E2 ..................................................................................................................................... 15
Annex F ................................................................................................................................................... 15
Annex G ................................................................................................................................................... 16
About CAI-Asia
The Clean Air Initiative for Asian Cities (CAI-Asia) promotes better air quality and livable cities by translating
knowledge to policies and actions that reduce air pollution and greenhouse gas emissions from transport,
energy and other sectors. CAI-Asia was established in 2001 by the Asian Development Bank, the World Bank
and USAID, and is part of a global initiative that includes CAI-LAC (Latin American Cities) and CAI-SSA (Sub-
Saharan Africa).
Since 2007, this multi-stakeholder initiative is a registered UN Type II Partnership with over 170
organizational members, eight Country Networks (China, India, Indonesia, Nepal, Pakistan, Philippines, Sri
Lanka, and Vietnam) and the CAI-Asia Center as its secretariat. Individuals can join CAI-Asia by registering at
the Clean Air Portal: www.cleanairinitiative.org. Its flagship event, the Better Air Quality conference, brings
together over 700 air quality stakeholders.
1. INTRODUCTION
Motorization in Asia is on an increasing trend. By 2050, it is predicted that there will be 300-350 vehicles per
1,000 people in Asian cities. As the number of vehicles increase, problems of traffic congestion and air
pollution also worsen. Air pollution affects morbidity and mortality. It is estimated that there are 162,933
deaths per year in the Philippines due to air pollution. Air pollution also impacts on climate change as there
are certain air pollutants that worsen it. Black carbon or soot and ozone absorb sunlight and make the
climate hotter. They are also deposited in the Himalayan snow making the snow melt rapidly and accelerate
climate change. The problem of air pollution should therefore be addressed and an integrated framework
like environmentally sustainable transport (EST) is needed to do this. One of the components of EST is cleaner
fuels and vehicles.
A publication entitled “Road Map for Cleaner Fuels and Vehicles in Asia,” published in November 2008 with
support from the Asian Development Bank (ADB), provides a detailed assessment of vehicle technology, fuel
quality and the technical requirements for producing cleaner fuels. It provides decision makers with up-to-
date information on how to clean up fuels in Asia by developing their own road maps. The Philippines is on
its way to developing such road map and the National Workshop on Clean Fuels and Vehicles held on 16
November 2009 in Manila is a step towards that direction.
The National Workshop was organized by the Department of Energy (DOE), with support from the United
Nations Environment Programme (UNEP)-Partnership for Clean Fuels and Vehicles (PCFV) and Clean Air
Initiative for Asian Cities (CAI-Asia) Center. About eighty (80) stakeholders from the government, oil and
automotive manufacturing industries, non-government organizations (NGOs), and the academe participated
in the workshop. A list of participants is provided in Annex B.
1.1 Objectives
The National Workshop aimed to bring together stakeholders so that they could develop an action plan for
cleaner fuels and vehicles in the Philippines. The action plan includes the identification of the steps needed to
achieve Euro 4 standards or specific parameters thereof and the different ways to finance and obtain public
support for such move to cleaner fuels and vehicles, the agencies responsible and the timelines for the steps
and actions to be undertaken.
1.2 Design
The National Workshop design consisted of presentations by resource persons in the morning of the one-day
Workshop and the preparation of an action plan by the participants in the afternoon. The open forum after
the presentations and the action plan formulation encouraged the active participation of the stakeholder
representatives.
The presentations focused on some of the issues raised during the consultative meetings held on October 23,
2009 to prepare for the National Workshop. These issues included the necessity of moving to cleaner fuels
and vehicles, the doability of the move to Euro 4 standard fuels or parameters thereof, the refinery capacity
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and supply in Asia for Euro 4 or low-sulfur fuels, the impact of cleaner fuels and its properties to vehicle
emissions and air quality, and the cost to refiners of the move to cleaner fuels. For the action plan
preparation, participants were divided into two groups - one worked on Technical and Policy Concerns, the
other discussed the Financing of Cleaner Fuels and Vehicles. The Technical and Policy Concerns group
discussed such issues as the parameters of Euro 4 which will be adopted in the move to cleaner fuels and the
phases of implementation. The Financing of Cleaner Fuels and Vehicles group discussed the different ways to
finance cleaner fuels and vehicles (like differential taxation, tax incentives) and how to convince the public to
agree to the policy of shifting to cleaner fuels and vehicles.
The agenda is provided in Annex A.
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2. PROCEEDINGS
Presentations were made by several resource speakers followed by facilitated discussions on technical,
policy, and financing issues in the move to cleaner fuels and vehicles.
2.1 Opening
The Workshop was opened by Sophie Punte, Executive Director of CAI-Asia who discussed, among others, the
impacts of air pollution, including its deleterious effects on health and how it worsens climate change. In
connection with this, she expressed support for the development of a road map towards cleaner fuels and
vehicles to help address the problem of air pollution. Department of Energy (DOE) Assistant Secretary
Matanog Mapandi in his opening message likewise expressed support for the development of an action plan
to achieving Euro 4 fuel standards.
2.2 Presentations
DOE Director Zenaida Monsada gave an overview of the fuel quality standards and thrusts in the Philippines.
She said that the Philippine policy is consistent with the global thrust of considering the impact of energy on
the economy, environment and society. She emphasized that while fuel quality is just one of many factors
affecting air pollution, fuels and vehicles remain critical for clean air. There are laws that establish fuel
standards supplemented by Philippine National Standards. There are fuel standards for Gasoline and Diesel,
Biodiesel and Blends and Bioethanol and Blends and standards for petroleum facilities and practices.
CAI-Asia Center’s Transport Program Manager, Bert Fabian, discussed the rationale for holding the National
Workshop and for working towards cleaner fuels and vehicles. He presented data on ambient air quality in
Asia and noted the explosive growth of motorization in the region. He said that as a result of this, there was a
concomitant increase in carbon dioxide levels in the air, especially in Asian cities. He noted that although
particulate matter levels are at a decreasing trend because of the implementation of stringent fuel and
emission standards, these are expected to increase in the future because of the sheer number of vehicles and
the uncertainty of the imposition of more stringent standards in the years to come. He also discussed the
impact to health of exposure to air pollutants and noted that air pollution causes morbidity and mortality. In
light of this, Bert Fabian stated that an integrated framework like the environmentally sustainable transport
(EST) is key to solving the problem of air pollution. Apart from urban/transport planning and demand
management, public transport and non-motorized transport, improved freight and logistics, cleaner fuels and
vehicles form part of EST. He stressed the importance of having a timeline in implementing stricter vehicle
emission standards and cleaner fuels.
Manwipa Kuson from Thailand’s Pollution Control Department shared Thailand’s experience in moving
towards cleaner fuels and vehicles. She traced the history of emission standards in Thailand. She stated that
low sulfur fuels is key to tighter new vehicle standards and that the 2012 fuel specifications for Thailand sets
sulfur levels at 50ppm both for diesel and gasoline. Manwipa Kuson also shared Thailand’s use of taxation
and incentives to encourage the use of vehicles that use alternative energy. Alternative and cleaner fuels are
also subsidized by the government to keep prices low.
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Lucky Nurafiatin, Asia and Middle East Research Manager of Hart Energy, gave an overview of fuel quality and
supply in Asia. She predicted that there will be an increase in vehicle population in the years to come, but
while she acknowledged this to be a strong indicator of economic development, it will also exacerbate a
deteriorating air quality situation. She presented data on current gasoline and diesel specifications in Asia
Pacific as well as the expected Asian fuel quality by 2012 in Euro equivalent standards (Euro 1 to Euro 5). She
noted that a sufficient supply of gasoline of any quality, including cleaner fuels or fuels with lower sulfur
levels, is expected to be available in Asia until 2015. However, specifically for distillates (on road and non-
road diesel), it is expected to be short on 10-50 ppm sulfur fuels based on known refinery projects and
expansions by 2015.
Eric Holthusen, Fuel Quality Manager for Asia/Pacific & Middle East of Shell Global Solutions, discussed fuel
properties and their impact on emissions and air quality. He stated that major environmental priorities and
their associated emissions focus have changed as Euro 1 to 5 process developed. He said that cleaner vehicle
technology and cleaner fuels need to be implemented simultaneously for maximum impact on air quality and
that legislation for cleaner fuels should concentrate on fuel parameters that have an impact on air quality like
sulfur.
Benito Aganda from Pilipinas Shell talked about the impact on refineries of tighter fuel standards. He made a
comparison of the current fuel specifications with Euro 4 standards and discussed what the shift would entail,
including the estimated cost of the same. He noted in particular the investment cost in lowering the sulfur
level of gasoline and diesel from the current 500ppm level to the Euro 4 sulfur level of 50ppm. Because of
the high investment cost in the shift to cleaner fuels, he emphasized the need for clarity on the product
specifications and ample lead time, normally 5 years from legislation mandating implementation of Euro 4 or
the specific parameters thereof that will be adopted.
2.3 Open forum
During the open forum, the participants raised several questions including: whether there was really a
market for Euro 4 standard fuels and vehicles, what was the effect to fuel economy of the shift to cleaner
fuels, what actions needed to be taken to eliminate tampering of vehicles and the unregulated importation of
used vehicles that do not meet standards and cause air pollution.
2.4 Action planning
A draft action plan (see Annex C), based on the consultative meetings held on 23 October 2009, with
members of the oil industry, national government agencies and auto manufacturing sector was presented to
the participants for their consideration. Engr. Jean Rosete of the Environment Management Bureau of the
Department of Environment and Natural Resources explained the draft action plan. She said that:
• An integrated approach, like the government’s Environmentally Sustainable Transport (EST) strategy,
is needed to improve the air quality in the Philippines.
• This integrated approach includes improving fuel quality and the vehicle fleet.
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• One of the proposed plans on improving fuel quality is for the DOE to issue by 2010, a regulation
mandating the phased implementation of new fuel specifications, including sulfur limits. This
regulation shall also provide that by 2012, diesel and gasoline with maximum sulfur level of 50ppm
will be introduced to the country and by 2015 only diesel and gasoline with maximum sulfur level of
50ppm will be allowed to be sold in the Philippines.
• On the proposed plan to improve the vehicle fleet in the country, by 2010 the DENR will issue Euro 4
(equivalent) vehicle emission standards for new light motor vehicles and that these standards shall
take effect in 2012 (that is, only Euro 4 vehicles will be given incentives beginning 2012) and that by
2014, only Euro 4 vehicles can enter the country and will be allowed to register with the LTO.
• The other components to an integrated approach towards improving air quality would include
improving public transport planning and traffic demand management, improving public transport
and non-motorized transport, improving vehicle inspection and maintenance and improving fuel
quality inspection.
Participants were divided into 2 groups: (a) Technical and Policy Concerns Group which discussed issues such
as the fuel specifications of Euro 4 that will be adopted in the Philippines, the policy to be adopted on in-use
vehicles, the importance of fuel monitoring, the timeline for the implementation of Euro 4 standard fuels and
vehicles, the question on what form the mandate shall be in the move to Euro 4 standards, among others,
and (b) Financing of Cleaner Fuels and Vehicles Group which discussed the different ways to finance cleaner
fuels and vehicles (e.g., taxation and other financing options) and to convince the public to support measures
for cleaner fuels and vehicles (e.g., awareness-raising campaign and giving of incentives to users of clean
fuels and vehicles). Each group made a list of the actions to be taken, the agency responsible, the timeline
for the accomplishment of actions and the remarks of the participants to the listed actions. A summary of
discussions for each working group is provided in Annex D.
2.5 Closing
Director Zenaida Monsada thanked those who participated in the preparation of the action plan which she
said shall be considered by the Technical Committee on Petroleum Products and Additives in their
deliberations and decision-making with respect to the move to cleaner fuels and vehicles.
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3. UPDATES AND NEXT STEPS
After the National Workshop held in November 2009, the Department of Environment and Natural Resources
(DENR) and the Technical Committee on Petroleum Products and Additives (TCPPA) held several stakeholder
meetings to follow-up on the recommendations during the workshop in December 2009.
CAI-Asia Center came to know that the during the December 2009 meeting of the DENR with the auto
industry, it was discussed that Euro 4 vehicle emission standards be left out of the draft DENR Department
Administrative Order (DAO) and not be made mandatory in 2014 for the following reasons: (a)
recommendation of the ASEAN Automotive Association (AAF) that Euro 4 vehicle emission standards be
imposed only if Euro 4 fuels is available nationwide, (b) the oil companies will only have the Euro 4 fuel
available in 2016 (considering lead time of five years from date of signing of the government regulation in
2010). See Annex E1 and E2 for copies of the letters from the auto industry to the DENR and DOE.
After learning of this, CAI-Asia Center suggested to the DENR that the Euro 4 vehicle emission standards be
included in the draft DENR DAO and that the year of mandatory implementation be discussed at a meeting of
the stakeholders (government, oil industry, auto industry, and civil society). DENR called a meeting of
stakeholders on 4 February 2010 on this issue. CAI-Asia Center participated in the meeting and supported the
DENR’s move to include Euro 4 vehicle emission regulation in the DENR DAO. Annex F is a copy of the 8
March 2010 draft version of the DAO being circulated by DENR for comments. The relevant part of the DENR
DAO is Section 4.2 which states “By 1 January 2016, all new passenger and light duty motor vehicle types to
be introduced in the market shall comply with EURO 4 emission limits subject to EURO 4 fuel availability.”
The DENR is aiming to have the DAO on vehicle emission standards signed in 2010. In parallel, the TCPPA
aims to have the Philippine National Standards for Euro 4 fuels issued in 2010.
The Philippine government agencies, particularly the DENR and DOE, need support from international and
regional organizations to implement its plans to move to Euro 4 vehicle and fuel standards. Support in the
form of information on the availability of Euro 4 fuels in Asia and in the formulation of policies and
instruments to ensure implementation of Euro 4 vehicle emission and fuel quality standards (e.g., tax and
other incentives) is needed.
[Note: Workshop photos are found in Annex G]
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ANNEXES
Annex A
Program
9.00 - 9.45 Welcome remarks
Sophie Punte
Executive Director, Clean Air Initiative for Asian Cities (CAI-Asia) Center
Matanog M. Mapandi
Assistant Secretary, Department of Energy (DOE)
9.45 - 10.00 Overview of Philippine Fuels Quality Standards and Thrusts
Zenaida Y. Monsada
Director, Oil Industry Management Bureau, DOE; Chairperson, Technical Committee on
Petroleum Products and Additives; Member of the Committee on Harmonization of Vehicle
Standards and Regulations; and Member of the East Asia Working Group on Benchmarking
of Biodiesel
10.00 - 10.20 Rationale for cleaner fuels and vehicles for the Philippines and objectives of the national
workshop
Bert Fabian
Transport Program Manager, CAI-Asia Center
10.20 - 10.50 Experience of Thailand in moving towards cleaner fuels and vehicles
Manwipa Kuson
Environmentalist, Professional Level, Automotive Air Pollution Section, Air Quality and
Noise Management Bureau, Pollution Control Department of Thailand
10.50 - 11.10 Refinery capacity and supply in Asia of Euro IV or low-sulfur fuels
Lucky Nurafiatin
Research Manager, Asia and Middle East, HART ENERGY
11.10 - 11.15 COFFEE/Question and Answer with Speakers
11.15 - 11.45 Relationship between fuel quality and vehicle emissions
Eric Holthusen
Fuel Quality Manager, Asia/Pacific & Middle East, Shell Global Solutions
11.30 – 12.00 Moving to cleaner fuels: Impacts on refineries
Benito Aganda
Pilipinas Shell
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12.00 - 13.00 Open forum: questions & answers between participants and experts
13.00 - 14.00 LUNCH
14.00 - 14.30
Presentation of draft Action Plan
Jean Rosete, Environment Management Bureau, DENR
14.30 - 16.00 Working groups
Group 1: Technical and Policy Concerns (Facilitator: Alvin David T. Lim, DOE)
• Which parameters of Euro 4 will be affected in the move to cleaner fuels?
• Implementation in phases (i.e., introduction phase, full implementation phase)?
• From among the steps or actions identified in the draft action plan, are there any
missing steps or actions?
• Is the sequence of the steps or actions acceptable?
Group 2: Financing Cleaner Fuels and Vehicles (Facilitator: Sophie Punte, CAI-Asia Center)
• How can the Philippines finance cleaner fuels and vehicles (e.g., differential
taxation in favor of cleaner fuels, tax incentives)
• How can we convince the public to agree to the new policy measure to improve
fuels and vehicles?
16.00 - 16.15 COFFEE
16.15 - 17.15 Presentation of Working Groups and Discussion
17.15 Summing up and Closing
Zenaida Monsada, DOE
Annex B
Participants List
Aileen Valera
Chevron
Aldrin Magpantay
Chemrez Technologies
Alex Loinaz
FILCAR
Alvin David Lim
Department of Energy
Arjay Carandang
Ford Philippines
Armando Mallilin
ITDI, Department of Science and Technology
Arnel Antonio
Department of Energy
Aulynn Cristobal
Total
Benito Aganda
Pilipinas Shell
Benjie Dionela
TMPC/CAMPU/TMA
Bert Fabian
CAI-Asia
Cecil Santiago
CAMPI
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Christine Danao
National Economic Development Authority
Cleotilde Bulan
ITDI, Department of Science and Technology
Clinton Martinez
Committee on Ways and Means, Senate of the
Philippines
Corazon Japson
Department of Science and Technology
Corie Panuncio
Ford Philippines
Danilo Encela
Land Transportation Office
David Garcia
AtinTo Foundation
Dennis A. Lim
National Economic Development Authority
Diane Marie Bernardo
Miraj
Don Mario Dia
Ethanol Producers Association of the Philippines
Eleanor Tantoco
PEI
Eleuterio Galvante
Department of Transportation and Communication
Eric Holthusen
Shell Global Solutions
Eva Aragones
Department of Energy
Fernando Bontia
PROTON
Florello Galindo
Asian Institute of Petroleum Studies, Inc.
Florida Jurado
National Tax Research Center
Gianina Panopio
CAI-Asia
Grace Panares
Chevron
Henry Balaoro
Philippine Export Processing Authority
Hermelina Bion
ITDI, Department of Science and Technology
Homer Maranan
CAMPI
Horace Cruda
Committee on Energy, Senate of the Philippines
Imelda Alaba
OIMB, Department of Energy
J. Tuazon
CAMPI
Jaime Diago
Pilipinas Shell
Jean Rosete
Environmental Management Bureau
Department of Environment and Natural Resources
Jennylyn Forbes
Seaoil
Jerry Horn
Chevron
Jing Raymundo
Joanne Sophia Chong
Asian Clean Fuels Association
Jose Dulce
USAID
Jose Maria Zabaleta
EPAP
Josefina Manuela Albano
National Tax Research Center
Karen Baydo
CAI-Asia
Lamberto de la Cruz
Marikina Pateros Jeepney Operators and Drivers
Association
Lara Orioque
Filpride
Lilian Cotaz
Board of Investments
Lucky Nurafiatin
HART Energy Consulting
Manwipa Kuson
Pollution Control Department of Thailand
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Maricris Pordan
Seaoil
Mario Bunag
PROTON
Mary Anne Rodriguez
Filpride
Matanog Mapandi
Department of Energy
Melchor Palaganas, Jr.
Bataan Petroleum
Mich Cruz
Pilipinas Shell
Michael Francis Mendoza
IEPI
Mike Alunan
AtinTo Foundation
Mylene Santos
Pilipinas Shell
Ning Ignacio
Chevron
Nona Pilariza
ITDI, Department of Science and Technology
Odon Galido
Petron
Patrick Montero
PCIERD
Preeti Jain
Indian Oil/AIM
Rafael Diaz
Asian Institute of Petroleum Studies, Inc.
Renee Miciano
Office of Senator Miguel Zubiri
Ricardo Infante
OIMB, Department of Energy
Robles Ables
Partnership for Clean Air
Sahid Kamid
UP-NCTS
Sally Monteiro
Philippine Institute of Petroleum
Sheila Flor Javier
UP-NCTS
Shiva Mehrabi
Ethanol Products Association of the Philippines
Sophie Punte
CAI-Asia
Tanya Santillan
Flying V
Teddy Reyes
Philippine Institute of Petroleum
Teresa Fung
CAI-Asia
Tess del Rosario
BPS
Vicky Segovia
Partnership for Clean Air
Vivian Cerrer
PEZA
Vu Tat Dat
CAI-Asia
Willy Toledo
Petron
Zenaida Monsada
Department of Energy
Annex C
Draft Action Plan
This Draft Action Plan was presented by Engr. Jean Rosete at the workshop and was the basis for discussion
in the working groups.
Key considerations
• Every person has the right to breathe clean air.
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• An integrated approach to improving air quality is needed.
• Improving fuel quality and improving the vehicle fleet are important components of the integrated
strategy.
• All sectors (government, non-government organizations, academe, and private sector) play an
important role in improving air quality
Proposed actions related to improving vehicles
• Tightening vehicle emission standards
o By 2010, DENR to issue Euro 4 (equivalent) vehicle emission standards for new light-duty
motor vehicles
o These standards to take effect in 2012 (meaning that starting 2012, only Euro 4 vehicles with
incentives)
o Starting 2014, only Euro 4 vehicles can enter the country and only Euro 4 vehicles can be
registered with the LTO
Proposed actions related to improving transport fuels
• Improving fuel quality
o By 2010, DOE to issue regulation mandating the phased implementation of new
specifications including sulfur limits:
� Starting 2012, diesel and gasoline with a maximum of 50ppm sulfur will be
introduced into the country
� Starting 2015, only diesel and gasoline with a maximum of 50ppm sulfur will be
allowed to be sold in the country
Other components of the integrated strategy
• Improving Vehicle Inspection and Maintenance
o Review of in-use emissions standards
o Strengthen roadside apprehension of polluting vehicles*
o Expansion of MVIS (at present 4 MVIS established)
• Improving fuel quality inspection
o Curb smuggling of fuels that do not meet specifications
o Improve inspection of fuel quality
o Develop policies and guidelines for pedestrian- and cycling-inclusive land use planning*
o Provide NMT facilities*
• Public Transport Planning and Travel Demand Management
o Reduce travel time for public and private transport users*
• Improving Public Transport & Non Motorized Transport (NMT)
o Develop mass transit systems especially Bus Rapid Transit (BRT)*
*Refer to Environmentally Sustainable Transport (EST) Strategy for the Philippines
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Annex D
Working Group Discussion
This Annex contains a summary of the issues discussed during the preparation of the action plan for the
Technical and Policy Concerns Group.
Summary of the Issues Discussed
During the Preparation of the Action Plan
Technical and Policy Concerns Group
Facilitator: Alvin David Lim, DOE
The first issue discussed was the fuel specifications that should be considered by the Technical Committee on
Petroleum Products and Additives (TCPPA) for Euro 4 standard fuels in the Philippines. There was a
suggestion by Alex Loinaz to use the Worldwide Fuel Charter (WWFC) as a starting point for this purpose. He
said that the WWFC already had a list of the properties, with minimum and maximum values and could serve
as guide for the group. An alternative proposal was suggested by Eric Holthusen of Shell Global Solutions
who said that the WWFC was like the “wish list” of the automobile manufacturers and that experience from
other countries shows that the specifications in this charter was not fully adopted in several countries that
moved towards Euro 4 equivalent fuels. He suggested that they use instead the European specifications
which were not as restrictive. Benny Aganda of Shell Pilipinas suggested that they just initially keep the
properties presented and just consider other properties later on. Alvin Lim noted that since the Philippines
wanted to harmonize standards in the region, it would be good if Manwipa Kuson can share what
specifications they have in Thailand. Manwipa Kuson replied that they chose parameters which had an
impact on emissions and acceptable to both the oil industry and auto manufacturing sectors. She identified
the parameters as sulfur, benzene, aromatics, olefins and PAH (for diesel). Bert Fabian suggested to adopt
Benny Aganda’s suggestion—to have as initial basis the Sulfur improvement, and for the other stakeholders
to submit a “one to four pager” to Director Monsada for other properties that they want to include and their
reasons for suggesting the same. At this point, Director Monsada said that the TCPPA will still deliberate on
the parameters and values and so whatever the group will produce is not the final thing. The initial
parameters identified were sulfur (50ppm), benzene, aromatics, olefins, and T95.
Director Monsada of DOE stressed that what is important is to have an action plan and to have a reference
Euro 4 that they can compare with other countries. She said that what they want is a Euro 4 fuel standard
that is doable, with ample supply and enforceable. There must also be a timetable for this.
The second issue was the concern on “old” or in-use vehicles, particularly those without catalytic converters.
One of the attendees stated that if a vehicle does not have a catalytic converter, the benzene and aromatics
in the fuel would cause the vehicle to pollute. The facilitator, Alvin Lim, said that he is set to inherit a 1991
model truck which does not have a catalytic converter. The question was therefore what to do with “old”
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vehicles, like the 1991 model truck of Alvin Lim, which does not have catalytic converter and could pollute
because of the benzene and aromatics in the fuel used. Alex Loinaz answered that regular maintenance with
regular monitoring of the level of emissions of the vehicle would help. Also, he said that it was important to
take note of the “useful life” of the vehicle. He said that if a second-hand vehicle is imported to the country
there is usually a certificate indicating the “useful life” of the vehicle. The group agreed that there was a need
to develop in-use vehicle registration requirements and strict emission standards. A representative from the
USAID suggested that they help in revising the Motor Vehicle Inspection System (MVIS) to strengthen the
efforts in lessening the air pollution caused by in-use vehicles. Later on during the discussion, Director
Monsada said that the Department of Trade and Industry (DTI) and the Department of Transportation and
Communication and the DOE were considering having a national maintenance program for vehicles, and that
Director Victorio Mario A. Dimagiba of the DTI has accepted the responsibility of taking care of this concern.
The third issue is the time line for the implementation of Euro 4 standard fuels and vehicles in the
Philippines. The group agreed that the implementation shall be in phases (i.e., introduction, transition, full
implementation). It was suggested that since they wanted regional integration and harmonization of
standards, then they must look at other countries in the ASEAN region as far as adoption of Euro 4 fuels and
vehicles is concerned. The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI)
representative, Homer Maranan, said that among the members of ASEAN only Thailand and Singapore are
certain to adopt Euro 4 standards. Director Monsada commented that, that is the reason she invited Japan
Automobile Manufacturers Association (JAMA) to the Workshop, so that they could have a bigger picture,
and not just ASEAN situation. She asked CAMPI when they expect to adopt Euro 4 standards. Homer
Maranan said that there will be a meeting of the ASEAN Automotive Federation (AAF) in the ASEAN region in
Hanoi later this month and he could update the group on the results of this meeting. Director Monsada said
that she was in Japan two weeks earlier and learned that because of the economic slowdown in Japan, it was
hard for them to decide. CAMPI requested that they be given the output of the Workshop before the
meeting in Hanoi so they could show it to the other members of the AAF.
Director Monsada then said that the “trigger” or first step to Euro 4 standards in the Philippines is the
issuance of the Department Administrative Order (DAO) from the DENR that “We are moving to Euro 4
effective two years after this announcement.” At this point, the issue of “2+2” was mentioned since
apparently this was what the auto industry wanted in the implementation of any regulation on cleaner fuels
and vehicles. Another representative from CAMPI rose up to explain the “2+2” principle. She said that what
this meant was that, for example DENR issues an announcement that there will be a move to Euro 4
standards on January 1, 2010, by January 1, 2012 Euro 4 will be adopted on a voluntary basis and by January
1, 2014, on a mandatory basis. It was noted that the DENR must not only make an announcement that the
country will adopt Euro 4 but it must issue the standards also. The desire of the group was that the present
Secretary of the DENR signs the issuance declaring a move to Euro standards before he leaves office to run
for an elective post. Homer Maranan summarized the steps in the implementation of Euro 4 fuel and vehicle
standards: (a) official announcement of the move to Euro 4 for example in 2010; (b) two years later, or in
2012, publication of the administrative order in the Official Gazette stating the voluntary adoption of Euro 4
standards for two years from said publication, or from 2012-2014 and mandatory adoption of Euro 4
standards thereafter, or from 2014-onwards. Incentives should be given to those who will opt to adopt Euro
4.
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The fourth issue is the question on whether the official announcement by the DENR that the country will
move to Euro 4 fuel and vehicle standards, should be in the form of a law or administrative order. There was
a suggestion by Alex Loinaz that a Department Administrative Order (DAO) is not enough. He noted that a
DAO could be easily changed since only the DENR Secretary needs to sign it. The announcement or issuance
must be more stable he said. He suggested that a DAO endorsed to the Oversight Committee of Congress and
approved by the latter is a better option. The suggestion was seconded by Benny Aganda who noted that
since the move involves a big investment on the part of the refiners and oil industry, they need an assurance
that there will not be any change of policy once the announcement has been made to move to cleaner fuels
and vehicles. Bert Fabian pointed out however that in case of the move to Euro 2, only a DAO was issued to
effect the shift to Euro 2.
Another issue raised during the discussion was on logistics. Jimmy Diago of Shell asked who will handle the
logistics if all fuels should be Euro 4 by 2014. Another issue also is fuel efficiency. Director Monsada said that
government can play a role in fuel efficiency for public transportation but for private vehicles, “labeling”
could help. There should be a link between fuel efficiency and type approval standards.
Below is a summary of the actions identified:
Technical and Policy Options
Actions Organization Timeline Remarks
1 Official announcement by Gov’t
through a DAO (endorsed by Joint
Oversight Committee)
DENR 2010 Shell comments-X (legislation)
+ 5 years
Finalize fuel quality specifications DOE in cooperation
with TCPPA, DTI
In determining specs,
consider
- Significance to country
- Doability – supply, cost,
monitoring/enforcement
2 2 years later-publish the regulation DENR, DOTC 2012 Voluntary
3 Full implementation DENR, DOTC 2014 Mandatory for new vehicles
4 Develop National Maintenance
Program
DTI, DOTC 2012?
5 Develop/strengthen in-use emission
standards/registration requirements
DENR
DOTC
2010 Ongoing, check with current
plans in DOTC
6 Check with ASEAN Harmonization
Efforts
CAMPI, CAI-Asia
Center
Nov/Dec
2009
7 Identify incentives (and other
instruments) to promote Euro 4
compliant vehicles
?
8 Study/develop logistics distribution
of Euro 2 & 4, considering parallel
supply
Shell?
Philippine National Workshop on Clean Fuels and Vehicles
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9 Link fuel efficiency/fuel consumption
regulations simultaneous with
implementation of new type
approval requirements for Euro 4
DOTC, DOE 2012
Financing
Actions Organization Timeline Remarks
1 Analysis of financing options? (tax
incentives, fines, registration/road
tax, toll) + framework to
implement the fund
DTI, DOE, DOTC,
DOF, DENR
Jan-Jul 2010
2 Analysis of incentives for
consumer, refineries, OEMs
DOF, DOE, DTI,
DOTC, DENR
Jan-Jul 2010
3 Consultation with stakeholders NGOs, OEMS,
refinery, oil
companies,
consumers
July-Dec 2010
4 Develop Bills (upper house and
lower house)
Energy-DOE Env’l-
DENR
Transport-DOTC
July-Dec 2010
draft
2011-2012
5 Develop IRR Energy-DOE
Env’l-DENR
Transport-DOTC
2012
6 Information and awareness
campaign
Energy-DOE
Env’l-DENR
Transport-DOTC
NGOs OEMs fuel
companies,
academe,
consumer groups,
others
Design 1st
Jul-Dec 2010
Design details
2011
Implementation
2012
Annex E1 and E2
Letters of the Auto Industry to DENR and DOE
Annex F
Draft DENR Department Administrative Order on Revised Vehicle Emission
Standards
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Annex G
Workshop Photos
Figure 1. CAI-Asia’s Sophie Punte opening the Workshop
Figure 2. DOE Assistant Secretary Matanog Mapandi
giving welcome remarks
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Figure 3. CAI-Asia’s Bert Fabian
Figure 4. Mawipa Kuson of Thailand
Figure 5. Open Forum