Half of global petroleum goes to transportation. According to a memo released by the Global Fuel Economy Initiative, within the transportation sector, light and heavy-duty vehicles account for more than 80% of the sector’s energy use and greenhouse gas emissions in 2010. Heavy-duty vehicles include a diverse mix of vehicles that account for 45 % of fuel consumption in the transport sector in China, 52% in India, and 35% in Brazil.

1. FUEL EFFICIENCY REGULATIONS & STANDARDS
Half of global petroleum goes to transportation. According to a memo released by the Global Fuel
Economy Initiative, within the transportation sector, light and heavy-duty vehicles account for more
than 80% of the sector’s energy use and greenhouse gas emissions in 2010. Heavy-duty vehicles
include a diverse mix of vehicles that account for 45 % of fuel consumption in the transport sector in
China, 52% in India, and 35% in Brazil.
All of the major vehicle markets - the US, Canada, Mexico, Europe, Korea, China and Japan - have
developed some form of greenhouse gas emission standards or regulations. EU, China, Japan set or
proposed greenhouse gas targets to 2020, while the US and Canada have established standards to
2025.
The picture is, however, very different from one country to another. There has been tremendous
policy progress in most major markets:
USA
In 2011, the Environmental Protection Agency (EPA) and the National Highway Traffic Safety
Administration (NHTSA) finalized the first phase of fuel-efficiency standards for medium and heavy-
duty trucks, saying that big rigs and semi trucks were required to achieve a 20 % reduction; heavy-
duty pickup trucks and vans were required to achieve a 15% reduction; and delivery trucks, buses
and garbage trucks were required to achieve a 10% reduction. EPA's regulations give instructions on
how to test vehicles, measure, calculate and report fuel economy information and affect the period
of 2014 to 2018.
Canada
In 2010, Canada finalized its regulations to limit greenhouse gas (GHG ) emissions, anticipating that
the average GHG emissions performance of the 2016 Canadian fleet of new cars and light trucks
would match an average level of 153 g CO2/km. The final rules for the Motor Vehicle Fuel
Consumption Standards Act were published as Passenger Automobile and Light Truck Greenhouse
Gas Emission Regulations in 2010.
China
China first adopted fuel consumption standards in 2004. The standard established “Phase I” and
“Phase II” fuel consumption standards, which were phased-in from 2005-2006 and 2008-2009. In
2009, China announced the development of Phase III of its fuel consumption regulation program, to
be phased-in from 2012 to 2015. In addition to specific fuel consumption limits by weight class, the
Phase III standards established a corporate - average fuel consumption (CAFC) target which
manufacturers are required to comply with.

2. European Union
Europe first introduced vehicle emission standards in 1988. The "Euro" track was first established in
1992 with increasingly stringent standards implemented every few years. Euro I standards were
introduced in 1992, followed by the introduction of Euro II regulations in 1996. These standards
applied to both truck engines and urban buses. The EU introduced the Euro III standards in 2000,
and the Euro IV/V standards in 2005 and 2008. The Euro III and Euro IV standards were preceded by
the introduction of more stringent fuel regulations , initiatives that have resulted in region-wide
supply of both gasoline and diesel fuel with near-zero sulfur content.
Fuel economy regulations and standards are currently in effect around the world, driving
development and introduction of new energy-efficient technologies.
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