G20 Leaders move to improve energy efficiency in heavy-duty vehicles

G20 countries have recognized the importance of moving towards world-class clean fuel and vehicle standards through example policies outlined in the “G20 Energy Efficiency Leading Programme,” referenced in their communiqué following the G20 Hangzhou Summit, which took place in China from 4-5 September 2016.

G20 countries, through the Energy Efficiency Leading Programme, are encouraged to develop their own policy goals and milestones towards world-class clean fuel and vehicle standards. The examples of existing policies and programmes align well with the CCAC’s work to reduce emissions of short-lived climate pollutants (SLCPs) from heavy-duty vehicles and engines:

"1. Introduction of mandates for clean fuels with a maximum sulfur content of 10-15 parts per million (ppm) to reduce emissions and enable advanced emission control technologies;

2. Introduction of stringent tailpipe emissions standards to minimise harmful pollutant emissions. For light-duty vehicles (LDVs), world-class standards are Euro 6, U.S. Tier 2/3, or equivalent standards. For HDVs, these are the Euro VI, U.S. HD2010, or equivalent standards;

3. Development of standards and programmes to improve fuel efficiency and reduce GHG emissions from LDVs and HDVs, to the greatest extent possible. Some countries aim to reduce the fuel consumption of new LDVs by 50% from a 2005 baseline by 2030, and to reduce the fuel consumption of new HDVs by 30% from a 2010 baseline by 2030;

4. Support to Green Freight programmes to help freight companies achieve cost-effective energy efficiency improvements in their vehicle fleets.

Other actions and options, such as promoting the use of low GHG complementary fuel, including sustainable biofuels, onboard capture and storage, or electric vehicles / new energy vehicles -have been successful in several G20 countries, and are useful to showcase world-class policies and programmes to reduce the energy and environmental impacts of motor vehicles. Examples include policies and programmes to support low-carbon biofuels as well as electric and hybrid electric vehicles.

Robust national compliance programmes, including in-use compliance programmes, an important part of all policies and programmes, help ensure standards are effectively implemented and enforced, and expected results are achieved."

The G20 communiqué stated:

"24. We reaffirm the importance of energy collaboration towards a cleaner energy future and sustainable energy security with a view to fostering economic growth. We welcome the progress on the voluntary international collaboration on energy efficiency in six key areas, taking into consideration the policies outlined in the Energy Efficiency Leading Programme and in line with national circumstances, including in heavy duty vehicles, and improving the efficiency of these vehicles. We also reaffirm our commitment to rationalize and phase-out inefficient fossil fuel subsidies that encourage wasteful consumption over the medium term, recognizing the need to support the poor. We welcome G20 countries' progress on their commitments and look forward to further progress in the future. Further, we encourage G20 countries to consider participating in the voluntary peer review process. Given that natural gas is a less emission-intensive fossil fuel, we will enhance collaboration on solutions that promote natural gas extraction, transportation, and processing in a manner that minimizes environmental impacts. We stress the importance of diversification of energy sources and routes."

The G20 Energy Efficiency Leading Programme framework says collaboration on energy efficiency needs to be:

• Long-term: Energy efficiency needs time. Based on best practices and knowledge sharing, investments, awareness and skills mature over several years. A long-term forward looking strategy will help avoid locking-in inefficient assets, boost profitability, increase investors‟ confidence, and go beyond short-term measures that aim for the low-hanging fruit only,andmaximise the full potential of energy efficiency gains available.
• Comprehensive: Energy efficiency is rarely the result of one single decision or programme. Energy gains are achieved by combining and utilising experiences of different policy tools in the short-term and long-term objectives, across different sectors of the economy.
• Flexible: Energy efficiency national policies need to be dynamic and updated over time to benefit from lessons learned from national and international developments and constant technological innovation, among other things.
• Adequately Resourced: Like all programmes, energy efficiency needs to be adequately resourced by dedicated human, institutional and financial resources, to allow its deployment at all levels of national and local economies. Support is needed to: i) create an enabling national policy environment; and ii) generate direct investments by public and/or private stakeholders into energy efficiency solutions, systems and technologies.