Two new reports released on Wednesday by the Paris-Based International Energy Agency (IEA) outlines how policy initiatives and specific technologies could cut automobile fuel consumption in half by 2030. The first report indicates that many of the technologies that would be required to make a noteworthy impact on automobile fuel efficiency are already commercially available. Unfortunately, while they are present in the market they are not widely used due to low market penetration. In order for these technologies to have global market penetration, the report suggests that governments must take action by having higher fuel economy standards and by providing citizens with greater financial incentives.
Two new reports released on Wednesday by the Paris based International Energy Agency (IEA) outlines how policy initiatives and specific technologies could cut automobile fuel consumption in half by 2030.
The report indicates that many of the technologies that would be required for making noteworthy impacts on automobile fuel efficiency are already commercially available. Unfortunately, while they are present in the market they are not widely used due to low market penetration.
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In order for these technologies to have global market penetration, the report suggests that governments must take action by having higher fuel economy standards and by providing citizens with greater financial incentives. Moreover, other more advanced fuel economy technologies will need additional R&D investments.
With advanced technologies for improved fuel consumption being already available, innovative government policies need to be quickly introduced. The second report outlines the specific governmental policy packages that can help remove the remaining barriers for fuel economy technologies, and that can help mobilize consumers to invest in these new automobiles.
The policy package described comprises of fiscal policies, fuel economy labeling, and financial incentives. Together these can help deliver a substantial reduction in fuel consumption for new road vehicles.
These reports also demonstrate that demand for oil can remain stable even if the number of road vehicles were to double by 2050. This could mean saving as much as 80% of the current annual oil consumption world-wide, significantly reducing CO2 emissions.
In order for these initiatives to become realized, governments must act quickly and technologies must seek to overcome barriers to global market entry. The International Energy Agency notes, "the new IEA 'fuel-economy readiness' index measures the extent to which countries have implemented steps that will fully exploit the potential of existing fuel economy technologies and maximize their use in vehicles. It reveals that very few have all the pieces in place to capitalize on the full potential of fuel economy improvements that could be achieved in the coming two decades."
For further information see the IEA reports; Technology Roadmap: Fuel Economy for Road Vehicles, Pathway: Improving the Fuel Economy of Road Vehicles
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