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Developing Fuel Quality Road Maps in Asia. Kong Ha Chairperson CAI-Asia Workshop on Developing Fuel Quality Roadmaps for Conventional Fuels in Asia 22-23 May 2006 Manila, Philippines. Sustainable Urban Mobility in Asia A CAI-Asia Program. Fuel Quality Roadmaps for Asia.
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Developing Fuel Quality Road Maps in Asia Kong Ha Chairperson CAI-Asia Workshop on Developing Fuel Quality Roadmaps for Conventional Fuels in Asia 22-23 May 2006 Manila, Philippines Sustainable Urban Mobility in Asia A CAI-Asia Program
Fuel Quality Roadmaps for Asia Rationale: Support the development of roadmaps for Cleaner Fuels and Vehicles in Asia
Integrated Approach • Fuels and vehicles are part of an overall, wider, air quality context • AQM efforts will usually also include activities aimed at reducing emissions from stationary sources and area sources • Emission reduction from mobile sources will also have to include I/M and transport demand oriented measures • The absence of detailed emission inventories and source apportionment studies should not prevent Asian countries from developing cleaner fuel roadmaps • Fuels and Vehicles are an integrated system
Build on existing plans and strategies • Certain individual countries have already decided on their future fuel specifications: • Thailand, Euro 4 equivalent fuels by 2010 • Korea, Singapore, Taipei,China and Hong Kong already have Euro 4 Fuels or will have them shortly • ASEAN- Ministry of Economy, Trade and Industry (Japan) Economic and Industrial Cooperation Committee (AMEICC) Working Group on Cleaner Fuels has called for non binding commitment for Euro 2 in 2006 and Euro 4 in 2010-2012 • Partnership for Cleaner Fuels and Vehicles (PCFV) has adopted an objective of 50 ppm for sulfur levels in gasoline and diesel by 2010 for Asian countries • Individual refiners have started the production of cleaner fuels or are planning for it, such as Reliance in India and Petron in the Philippines
Fuel Specifications (1) • Fuel quality does not only influence emissions but also drivability, engine wear and fuel efficiency • Supportive research for fuel specifications has been well established and generally there is no need for Asian countries to replicate such research • Asian countries should implement all fuel parameters as defined in fuel specifications linked to European emission specifications • Asian countries with warm climate can apply variation in RVP • In some cases the adoption of a comprehensive set of fuel properties will delay the introduction of cleaner fuels substantially. In such cases the option to reduce sulfur first may be considered
Fuel specifications (2) • Leapfrog from Euro 2 to Euro 4 emission standards makes good technical and financial sense • Some Asian countries where air pollution from transport is severe should consider Euro 5 standards • Asian countries with large domestic refining capacity can consider applying US flexibility principle. Importing countries should not do so. • Fuel quality monitoring is essential, especially where different fuel standards exist in the same country
Timing of Introduction of Cleaner Fuels • Technology for fuel improvement is well established and can be applied in Asia on a no-risk basis • Euro 4 Vehicle technology well established in Asia • Maximum lead time to move to Euro 4 or stricter is 4-6 years but in many cases can be shorter • Import of Euro 4 fuels can be considered pending the construction or modification of refineries to shorten the lead time for introduction of cleaner standards • Refinery expansion in Asia should be based on Euro 4 or stricter standards
Cleaner Fuels and In-use vehicles • Main driver for cleaner fuels are new vehicles, there is an impact on in-use vehicles as well but more research required on the impact of cleaner fuels on in-use vehicles • Cleaner fuels, especially with less than 50 ppm sulfur allow for retrofit of gross polluting diesel vehicles: • Technology is established now and pilot projects have demonstrated impact • Current cost levels justify focus on retrofit of high use fleet vehicles • Alternative approach of dealing with gross polluting vehicles remains phase out.
Introduction Scenarios • Uniform introduction across country: • Advantages in terms of AQ impact provided specifications are strict enough • High short term costs to refining sector • Avoids misfueling • Flexibility provision for special markets (off-road and stationary) • Prioritized introduction in selected cities: • Can be considered for large countries, e.g. India and China • Requires availability segregated fuel marketing and distribution system • Price differential whereby cleaner fuel should be cheaper • Fuel quality monitoring important to ensure misfueling • Harmonized standards across Asia: • Security of availability of cleaner fuels • Reduction in complexity for the vehicle industry
Facilitation of Introduction of Cleaner Fuels • Fuel Quality regulations, combined with emission standards should be the backbone of any policy or strategy on cleaner fuels • Government policy to accelerate production or uptake of cleaner fuels: • Public outreach and consensus building • Combination of tax and pricing policies • Temporary incentives can be used to speed up acceleration of market uptake of cleaner fuels • Cost for producing cleaner fuels needs to be passed on to consumer: • Controlled pricing, still prevalent in some Asian markets precludes the opportunity to pass on costs • Increasing Asian markets are being deregulated opening up the possibility to pass on costs
Role of the International Development Community • Many countries in Asia have a limited administrative and monitoring capacity, this has hampered the introduction and implementation of cleaner fuel standards. • Development organizations can and should consider assistance for: • Further awareness raising on importance of cleaner fuels as part of an integrated AQM strategy • Capacity building for regulators to formulate, implement and monitor fuel quality improvement strategies and legislation • Financing of refinery upgrading or new construction through loans or partial guarantees
Next steps • Results of discussions in the workshop and the comments received will be integrated in the report • Final conclusions and recommendations will be presented to the First Governmental Meeting on Urban Air Quality, 13-14 September in Indonesia • Final consensus will form the basis for policy dialogue on cleaner fuels and vehicles by CAI-Asia and its local networks. See for full text of the report: http://www.cleanairnet.org/caiasia/1412/articles-70655_paper.pdf. Please submit your comments before 5 June