2017 Global update: Light-duty vehicle greenhouse gas and fuel economy standards
Global greenhouse gas (GHG) emission and fuel economy standards for light-duty vehicles (LDVs) have progressed significantly in a little more than a decade. Ten years ago, only four governments had introduced mandatory GHG emission/fuel economy standards: China, Japan, South Korea, and the United States. The European Union and Canada had announced their intention to introduce GHG emission standards, but neither government had a legislative framework in place. Today, 10 governments—Brazil, Canada, China, the European Union, India, Japan, Mexico, Saudi Arabia, South Korea, and the United States—have established fuel economy or GHG emission standards for LDVs. And all are among the top 15 vehicle markets worldwide: nearly 80% of new LDVs sold globally are currently subject to some kind of GHG emission or fuel economy standards. Other large markets, such as Australia, Thailand, and Vietnam, are in the process of developing standards as well. This report examines how the greenhouse gas and fuel economy standards have changed over time, how the auto industry in different regions has reacted, and discusses how the standards may evolve in the future.