CCAC Heavy-Duty Vehicles and Engines Hub - Insight Meeting | Global Sulfur Strategy

On 8 February 2023, the CCAC welcomed Rob de Jong and June Yeonju Jeong from UNEP and Francisco Posada from ICCT to present progress made in the implementation of the Global Sulphur Strategy. Jim Blubaugh and Samantha Pryor from the US EPA moderated the session. A brief summary of some of the key points raised in the presentations and in the Q & A session and information about the presenters are as follows: 

Summary of the Presentations

Rob de Jong - UNEP 

• The relative share of heavy-duty vehicles is increasing, and by 2030 an estimated 40% of emissions will be coming from heavy duty vehicles. 
• There has been a dual focus on introducing clean fuel and vehicle standards. Since the introduction of the 2016 Global Sulfur Strategy there has been great progress with regards to fuel standards with 43 countries having committed to moving towards low sulfur fuels. There has also been a realization that vehicle standards cannot only focus on new vehicles but must also regulate used vehicles that are being imported. 
• Progress in Africa: 
  • The 5 East African countries had already adopted 50 ppm diesel standards in 2015, the sub-region adopted EURO IV vehicle emission standards in 2022  
  • The 15 ECOWAS countries adopted regionally harmonised fuel and vehicle emission standards  
  • SADC Ministers made a decision to shift to low sulfur diesel by 2022 and 11 of the 16 countries have fully implemented 50 ppm diesel standards 
• Progress in Latin America and the Caribbean: 
  • 5 countries adopted 50 and below ppm diesel standards  
  • Colombia and Peru have adopted concurrent vehicle emissions standards to Euro VI 
  • Barbados, Costa Rica, Paraguay, Panama do not have concurrent HDV emissions standards  
  • The 8 Central American countries (SICA) have developed an action plan and roadmap for fuels and vehicles 
• Progress in Asia 
  • 7 countries already adopted 50 ppm diesel standards  
  • 9 countries have already adopted Euro-4 equivalent or lower vehicle emissions standards  
  • 10 countries in the ASEAN sub-region adopted Fuel Economy Roadmap  
  • Average fuel consumption per 100 km of new light-duty vehicles sold in ASEAN is reduced by 26 percent between 2015 and 2025.  
  • UNEP-ICCT working on Euro-6/IV roadmap for HDV with ASEAN 
• The initial 2016 Global Sulfur Strategy had a national focus, however the prevalence of trans-national trade has allowed the strategy to evolved to focus on regulation and standards across regions. 

Francisco Posada – ICCT 

• ICCT worked in the Republic of South Africa to develop a cost and benefit analysis which provided arguments in favour of transitioning to soot-free vehicles in South Africa. South Africa is a strategically important player in the region as they export across the continent so change in South Africa reduces the barriers for technological transition across Africa. 
• ICCT calculated that delaying the introduction of 10ppm sulfur diesel and Euro VI standards for 5 years would result in a net welfare loss of approximately 3 billion USD, and an additional 5,097 premature deaths. 
• ICCT and UNEP have been working together on a workshop series on ASEAN Soot-free Heavy-Duty Vehicles and Fuels. Representatives from across the region have attended and the focus has included the transition to Soot-free Heavy-Duty Vehicles and Fuels, accelerating the adoption of Euro VI and E-HDVs, and technical workshops on Clean Fuels and Emissions Standards and electrification. 

Q&A Session Highlights: 

• The meaning of leapfrogging was discussed. One conception was the absence of a need to move linearly through the Euro standards, instead these countries may benefit from jumping straight to Euro 6. This concept was then developed by discussing whether to leapfrog diesel technology entirely, and move straight to electrification, as the fleet that is purchased today will likely say on the road for the next two decades.  
• Although there has been great progress across Africa there remains a lot to be done in terms of implementing standards, particularly upscaling from national to regional regulation. Beyond this, there is a difference between adopting a standard and implementing a standard, including how we monitor the import of used vehicles and ensure that their filters are still working. 
• The point was raised that there is a need to think strategically about making a coherent argument to support investments in moving to low sulfur fuel that need a long timeframe to be financially recovered, whilst also pushing the electrification mandate that is necessary to achieve our climate goals. There is a need to think more from a financial perspective to bring these two together.