Fuel economy
Improvements in the average fuel consumption of light-duty vehicles have slowed in recent years, significantly below the rate of annual improvement needed to stay on track with global climate goals.
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The fuel economy of new light-duty vehicle sales will need to improve by about 3.7% per year on average to stay on track with global climate goals. The most effective policy proven to drive such improvements is vehicle efficiency (or fuel economy) standards. Standards in some countries already require improvements at or above this rate. While recent extensions in the standards in Japan and the European Union, and a draft proposal in China are promising signs, the ambition of standards in the United States remains uncertain . Meeting the target globally will mean extending the scope of standards between where they currently exist and ratcheting up their stringency where they do not. Tightening the rules governing vehicle compliance during tests, and setting up frameworks to ensure these reflect real-world driving, are essential to ensure that all stakeholders make meaningful progress.
Rapid adoption of electric vehicles will also help to achieve efficiency goals.
Rapid adoption of electric vehicles will also help to achieve efficiency goals.
Last updated Jan 7, 2022
Key findings
Global light-duty vehicle fuel economy improvements, Net Zero Scenario, 2005-2030
OpenFuel economy standards under real-world driving conditions must become significantly more stringent
Global average fuel consumption improved only 0.9% between 2017 and 2019, compared to a 2.6% annual average reduction between 2010 and 2015. To overcome sluggish progress, aggressive policies are needed to address the rise in average vehicle size, prompted by increasing market shares of SUVs. Under the Net Zero Emissions by 2050 Scenario, global average fuel consumption of new light-duty vehicles in 2030 is nearly half the 2019 level. Ambitious fuel economy and/or CO2 emissions standards should be a policy focus to support and accelerate widespread uptake of more fuel-efficient vehicles. Policies that counter ongoing growth in vehicle weight and power should also be implemented, and road fuels should be taxed at a rate that reflects their impact on people’s health and the climate.
Macroeconomic and energy indicators in the Net Zero Scenario, 2020-2030
OpenIncreasing fuel efficiency standards of all vehicle types is needed
For transport, increasing fuel efficiency standards of all vehicle types is important as even in the Net Zero Emissions by 2050 Scenario, 80% of passenger cars on the road in 2030 are still powered with internal combustion engines. Sales of heavier, less efficient SUVs reached more than 40% of global sales in 2020, while electric vehicles were just 5%. More than 20 countries have recently announced plans to phase out sales of internal combustion engine vehicles, with 2035 set as the milestone for this in the scenario.
Analysis
Reports
Our work
The Global Fuel Economy Initiative (GFEI) – a partnership of the International Energy Agency (IEA), the United Nations Environment Programme (UNEP), the International Transport Forum of the OECD (ITF), the International Council on Clean Transportation (ICCT), the Institute for Transportation Studies at the University of California-Davis, and the FIA Foundation – works to secure real improvements in fuel economy and the maximum deployment of existing fuel economy technologies in vehicles across the world.
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Created in 1990, the AFC TCP seeks to make a significant contribution to address the opportunities and barriers to fuel cell commercialisation by fostering the development of fuel cell technologies and their application on an international basis, and conveying key messages to policy makers and the wider community as appropriate.
Created in 1979, the AMT TCP focuses on materials critical to fuel efficiency improvement for current and future transportation technologies. The AMT TCP conducts co-operative research activities on friction reduction, waste heat recovery, and lightweighting of vehicles. The TCP work programme includes the development of standard test methods, testing, demonstration and design guidelines.
The mission of the AMF TCP is to advance the understanding and appreciation of the potential of advanced motor fuels towards transport sustainability. This is achieved by providing sound information and technology assessments designed to facilitate informed and science-based decisions regarding advanced motor fuels at all levels of decision-making.
The Combustion TCP provides a forum for interdisciplinary exchange and enables international collaborative research to advance the understanding of combustion processes to: accelerate the development of combustion technologies that demonstrate reduced fuel consumption and have lower pollutant emissions in transportation, power generation, industry and buildings, and; generate, compile and disseminate independent information, expertise and knowledge related to combustion for the research community, industry, policy makers and society.
