Introducing Measures, Pathways and Roadmaps for Optimizing Vehicle Efficiency and Electrification (IMPROVE) Project

CONTEXT

Global Context
The transport sector is currently responsible for around a quarter of global energy-related greenhouse gas emissions. Emissions are rising sharply, especially in road transport in non-OECD countries, due to a corresponding increase in the number of vehicles with internal combustion engines. Meanwhile, electric vehicles, although increasing rapidly, still only represent a marginal portion of global vehicle sales. At the same time, the growing share of larger cars (SUVs) in all markets has offset the efficiency gains in the internal combustion engine market.

Many countries lack the regulatory framework to steer their vehicle markets in a direction that allows them to meet their climate objectives and reduce their dependence on fossil fuels. The project IMPROVE addresses this gap in four countries, namely Colombia, Kenya, Morocco and Thailand, by supporting its partner ministries to develop proposals for policies and regulations that support the transition to cleaner and more energy-efficient vehicles.

Thailand’s Context
In its updated National Determined Contributions (NDC), Thailand committed to a 30% reduction in GHG emissions by 2030 compared to the Business as Usual (BAU) scenario of approximately 555 MtCO2eq. Mitigation measures in the transport sector could contribute to a reduction of 45.61 MtCO2eq. Transport currently accounts for roughly 20% of all Thailand’s emissions in 2019. According to the data from the Department of Land Transport, in 2022, there were 43.4 million vehicles in Thailand, with about 2.7 million new registrations per year, 0.8 million of which were passenger cars.

Ranking 10th in motor vehicle production globally, Thailand can drive fuel efficiency policies at the manufacturing stage. With the aptly named “30@30” policy, the country’s aim is for 30% of vehicles produced in Thailand, as well as 50% of new passenger car and pickup truck sales domestically, to be zero-emission vehicles (ZEV) by 2030. This means that the remaining 70% of new vehicles in 2023 will still rely on fossil fuel and emit considerable pollution unless their fuel consumption can be lowered. The IMPROVE project intends to tackle the issue by supporting the country in this endeavour by focusing on the enabling environment for vehicle efficiency and the balance between the environmental and economic impacts of such policies in Thailand.

OBJECTIVE

The IMPROVE project aims to assist partner countries in achieving their climate goals in the transport sector by focusing on improving vehicle fuel efficiency policies.

APPROACHES

The project follows a cross-regional and multi-actor approach and works hand in hand with its political partners and international experts.

1. Identification of policy options

In a first step, together with partners, the project will analyse the vehicle market and the regulatory status quo of Thailand, taking into account relevant climate, energy and industrial strategies of the country as well as questions of data availability, accessibility and quality. Based on the analysis, partners can identify the policy instruments that align best with the Thai national priorities and fit the local conditions.

2. Data collection and baseline development

New regulatory approaches require a solid and reliable empirical foundation. Hence, once the policy instrument is selected, the project will support partners to collect and analyse the necessary data on vehicle fleets, fuel consumption and emissions in order to build or update a fuel consumption and CO2 baseline for the relevant vehicle segment.

3. Stakeholder engagement and consensus building

The project will support its political partner to engage the most important stakeholders in the development process of a policy proposal by organising consultation meetings and workshops and coordinating an inter-institutional steering group.

4. Technical studies and policy proposal design

The development process for the policy proposal will be supported technically through the conducting of in-depth technical studies that are required for the design and implementation of a new policy. This includes scenarios on CO2 reductions, socio-economic impact assessments, as well as legal advice.

5. International learning

As the project is operating in four countries simultaneously, partner countries will be able to benefit from each other’s experience and lessons learnt. Cross-country exchange formats will be organised by the project, e.g. during the Transport and Climate Change Week in Berlin, where partner countries can interact with each other and with international experts.

RESULTS SO FAR

• A draft scoping study report
• The establishment of cooperation between the Office of Transport and Traffic Policy and Planning and the Office of Industrial Economics on fuel economy policy recommendations
• The establishment of the project’s working group hosted by the Office of Transport and Traffic Policy and Planning

FINANCED BY

German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV)

COUNTRY

Colombia, Kenya, Morocco, Thailand

PROJECT PARTNERS

• Office of Transport and Traffic Policy and Planning, Ministry of Transport, Thailand
• In cooperation with the Office of Industrial Economic, Ministry of Industry, Thailand

PROJECT DURATION

12/2022 – 05/2026