Minimum performance requirements Pros and cons of possible
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Minimum performance requirements Pros and cons of possible metrics UNRSF project: Safer and cleaner used vehicles for Africa 2 nd exporting countries stakeholders group meeting February 22, 2021 Pierpaolo Cazzola Advisor – Energy, technology and environmental sustainability - International Transport Forum
Minimum performance requirements Pros and cons of possible
Decarbonising Transport2nd exporting countries stakeholders group
meeting
February 22, 2021
Intergovernmental organisation
• OECD framework, 62 member countries
• More than 70% of road transport 80% of global air transport
and 90% of maritime
Think tank for transport policy
Data and statistics
Knowledge sharing
Annual Summit, largest gathering of transport ministers
Corporate Partnership Board
Current focal areas
The ITF
traffic safety data
2021)
ADB, SSATP ….
Used vehicle trade: overview
Despite relatively little attention, trade of used vehicles plays a
major role in total
passenger vehicle imports/exports is a significant part of global
vehicle trade
Trade in used vehicles tends to flow from high-income countries to
low-income countries
› Canada/United States, Europe and
main importers
disposal)
countries
5
Seen from importing countries
Effects of used vehicle trade differ and depend on the specific
circumstances
› Vehicle producing countries may see sales and prices of new
vehicles depressed,
with a negative impact on the auto manufacturing industry
› Countries that do not produce cars may have net benefits thanks
to increased
variety of offer and lower prices
Negative impacts are due to detrimental effect often coupled with
personal vehicle travel
(accidents, noise, emissions, congestion) and depend on the policy
context
› Impacts on use of better vehicle safety features and
noise/emission mitigation
depend on the way vehicles (including used imports) are
regulated
› Enforcement of vehicle maintenance requirements also
matters
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Seen from exporting countries
Possibility to still recover value from vehicles that would
otherwise be worth very little
Some effects on increase of domestic used vehicle prices and used
vehicle exports
› Bot easy to see what this means for new vehicle sales (higher
value for used
vehicle trade may increase new vehicle sales, but it also lowers
value of new
vehicles being sold)
› Net impacts vary also based on market size (higher impacts for
small domestic
markets – e.g. Japan – with large export demand)
Risk to bypass costs and enforcement of national requirements
› End-of-life recycling (more lucrative and cost-effective to
export used vehicles than
to formally scrap them)
› Required maintenance (export of broken/not roadworthy
vehicles)
› Also potential opportunity for more advanced technology (e.g.
hybrids) to reach
developing countries earlier 7
› Economic measures: higher tariffs for used vehicles, fiscal
instruments like
differentiated taxation on the first registration of second hand
vehicle imports (e.g.
based on safety equipment or environmental characteristics)
› Regulatory instruments: license requirements to legally import a
used vehicle, bans
on vehicles not meeting specific requirements (e.g. on safety
and/or environmental
characteristics), complete ban
› Communication instruments: labelling
› Regulatory instruments: license requirements to legally export a
used vehicle, bans
on vehicles not meeting specific requirements (e.g. on safety
and/or environmental
characteristics)
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Importer perspective
Currently, complete bans mostly to protect domestic production and
sales of new
vehicles
› Protection of local industry: in many developing countries, the
least expensive new
vehicles are often locally produced
› Protection of new vehicle dealers, in countries that do not
produce vehicles
› Bans could have a detrimental effect due to delayed access to
better connectivity
(higher barriers to access to vehicles, which can enable better
connectivity)
Need to consider balance between vehicles, modal allocation and
infrastructure when
looking at connectivity, though…
Policies (not only bans) can also help address negative impacts
(accidents, noise,
emissions, congestion)
Complete ban
Powertrain technology
(e.g. diesels)
Often still based on rather crude criteria, there
is room for improvement
Lack of a valid roadworthiness certificate
Problems with the emissions control system
Tampering: from odometers up to removal of catalytic
converters
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Age limit
Exporter perspective
Effective enforcement of end-of-life requirement
› Will gain importance with circular economy and greater relevance
of materials
embedded in EV batteries
› Greater capacity available to assess roadworthiness and respect
of environmental
performance (but higher cost)
Opportunity to maximize positive impacts of second hand vehicle
exports on
development (connectivity, air quality, energy efficiency), if
trade is well regulated, while
also limiting negative impacts (depreciation)
Differentiated treatment favouring vehicles with bets environmental
performances can
help supporting the efforts made in exporting countries to meet
environmental goals and
stimulate innovative technologies (through effects on
depreciation)
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Used vehicle trade: are there better criteria?
Examples of possible improvements enabled by selected limitations
to exports and the use
of better criteria:
Making a difference between waste and acceptable vehicle conditions
(roadworthy,
respecting requirements imposed by periodical technical
inspections)
› Road safety improvements
› Environmental/health related improvements (air quality,
climate)
Better match between vehicle and fuel standards in receiving
countries (air quality)
Greater sophistication on the assessment of performance
› Better quality checks than those enabled by existing import
regulations
Complement policies aiming to steer used vehicle trade in importing
countries
› Especially relevant in cases where these are not really in place,
or poorly
implemented
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Can WP.29 help set better criteria?
Advantage of broad and internationally agreed set of regulatory
texts (readily available)
on safety (roadworthiness) and environmental performance
› Enabler of cost reductions, important for trade
facilitation
› Definitely allowing to set more sophisticated criteria on used
vehicle trade, to
maximise opportunities best practices and/or avoid poor
practices
Barrier: need to be a contracting party (or become one) to the
WP.29 agreements
› 1958: UN Regulations on type approval and the mutual recognition
of the type
approvals and conformity of production of vehicle equipment and
parts
› 1998: UN GTRs with globally harmonized performance-related
requirements and
test procedures (also used in UN Regulations)
› 1997: UN Rules on periodical technical inspections of vehicles in
use and their
reciprocally recognition of international inspection
certificates
Accession to the agreements likely to come with other advantages to
set policies on
vehicle performances (e.g. fuel economy, pollutant emissions…) and
much less costly:
better to piggyback than to re-establish a complex regulatory
framework 13
Thank you