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Regional Consultation on Vehicle Import Policy
Roadmap for Clean Air: Sharing Bhutan’s Experience on Regulations of Vehicle Import, Banning of used vehicles:
Impact, Lessons and Next Steps
May 31, 2018, Zanzibar
Outline
Country Background
- Socio-Economic Indicators for Bhutan (March 2018)
- Brief History of Road Transport in Bhutan
- Types of Roads in Bhutan
- Factors and Economic Trends
Motorization Trends and growth forecast
Share of vehicle by Type
Forecast of Vehicle Stock/Fleet growth
Vehicle Import Regulation
Policy on Phase out of old vehicles
Importing Countries
Balance of Trade (Export –Import)
Vehicle Emission Regulations
Impact of Ban of secondhand and reconditioned vehicles
Next Steps
Country Background
Socio-Economic Indicators for Bhutan (March 2018)
Indicators 1985 2018
Population 678342
Population density (per sq.km) - 16
Population growth rate (%) 2.0 1.3
GDP Per capita in US$ (1 US$=Nu 67.19)
- 2879.07
GDP growth Rate (%) 6.8 7.99
Brief History of Road Transport in Bhutan
• Over the past 57 years (1961-2018) Bhutan has been transformed from a closed pastoral society with no electricity and no roads into a rapidly emerging economy with aspirations for further substantial development.
• Travel in Bhutan was by foot or on mule- or horseback until 1961
• Road construction began in earnest during the First Development Plan (1961–66). The first 171-kilometer long paved road was completed in 1962.
• Today the road length has reached over 12,348 KMs. • Vehicle numbers have reached 94956 as of April 2018.
Types of roads and length
Sl# Road Type Length (Km)
1 Expressway 6.20
2 Primary National Highway 1974.64
3 Secondary National Highway 584.47
4 Dzongkhag Roads 1504.47
5 Urban Road 396.76
6 Farm Road 5240.32
7 Forest Road 1097.11
8 Approach Road 262.06
9 Power tiller track 111.1
10 GC roads (constructed)
GC roads blacktopped
60.30
147.87
As of June 2016
Total 11,322*
Road Network in Bhutan (December 2015).Source: Department of Roads, MoWHS
* As of March 2018..12,348 KMs of Roads of all types 6
Motorization trend
13
58
4
15
62
9
18
28
8
19
46
3
22
49
4
24
43
0
25
00
3
26
74
0
29
91
4
33
24
1
35
70
3
40
65
9
45
81
9
53
28
2
62
69
7
67
,44
9
67
92
6
69
60
2
75
19
0
84
29
7
92
00
8
94
95
6
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000 1
99
7
19
98
19
99
20
00
20
01
20
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20
03
20
04
20
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20
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20
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10
20
11
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12
20
13
20
14
20
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20
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20
17
20
18
(A
pri
l)
No. of motor vehicles
Share of Vehicle by Type 2018
Forecast of Vehicle Fleet in Bhutan
9 Bhutan Transport 2040: Integrated Strategic Vision (2011)
Vehicle Projections (Vehicle Stocks) Bhutan 2015-2030
Source: Grütter Consulting, 2017
Factors and economic trends affecting vehicle
growth
Fundamental factors and economic trends that will determine the future of the country. New factors may emerge in the future, but the following seven trends will likely dominate and drive change over the next 30 years:
(1) Electricity production, hydropower projects and exports to India (2) Industrial development and new population centres in the south (3) Rural-to-urban migration: bigger cities and declining rural population (4) Tourism: carefully managed growth (5) Gross National Happiness including poverty reduction (6) Regional connectivity and increased levels of trade (7) Brand Bhutan: development of the country’s comparative advantages
All the above trends will have an impact on the future of the transport sector and help defining the Transport Vision and the associated Transport Strategies.
Electricity and GDP per Capita
Source: Bhutan Transport 2040: Integrated Strategic Vision (2011)
Industrial Areas
Samtse Phuentsholing Gelephu Samdrupjongkhar
Nganglam
Thimphu Annual Average PM10 Levels
Data from other stations (Rinchending, Bajothang, Kanglung) also show that PM10 levels are increasingly critical. Data from other stations (Rinchending, Bajothang, Kanglung) also show that PM10 levels are increasingly critical.
Vehicle Import Regulations Bhutan is an import dependent country Prior to 1999, secondhand vehicles could be bought from India and other
countries. Reconditioned vehicles started coming in from 1994 (Mostly from Japan)
Since 1999, import of Second hand/reconditioned vehicle is not allowed for
into the country, regardless of the country of origin except: (a) a second hand electric vehicle which has not run for more than 30,000
Kilometres, may be registered. (b) an expatriate may bring a used vehicle on posting in Bhutan but must be
re-exported upon completion of term of employment in the country. (c) A Bhutanese expatriate may bring the used while stationed temporarily
abroad but under the following conditions: (i) A Bhutanese national has worked continuously abroad for a period of at least two years; (ii) The vehicle must be procured and registered in his/her name in the country of residence at least one year prior to its importation into Bhutan; (iii) The vehicle procured abroad, is new and not second hand; and (iv) Duty and sales tax applicable shall be payable.
Vehicle Import Regulations
Vehicle Standards are set by the RSTA ( Three wheelers
like Auto, Tempo etc. not allowed)
Only four stroke two wheelers allowed
Age limit exists for Commercial Vehicles (14 years for
high end buses, 9 years for others and 9 years for taxis)
Fuel Import
Estimated comparison between the revenue from hydropower and expenditure on fossil fuel imports for Bhutan in 2015. (Source: Data from Bhutan Broadcasting Service)
Importing Countries
(1) India (Maruti, Tata, Mahindra, Ford, Nissan etc)
(2) Japan (Toyota, Hybrids, Power Tillers, Earth Moving Machines)-
(3) South Korea (Hyundai, Kia, Sorento)
(4) China ( Pick ups and Buses)
(5) Vietnam (Power Tillers)
(6) Thailand ( Pick ups and vehicle parts)
Balance of Trade
Source: Bhutan Trade Statistics 2016
Balance of Trade Excluding Electricity
Source: Bhutan Trade Statistics 2016
Top Imports
Source: Bhutan Trade Statistics 2016
Source: Bhutan Trade Statistics 2016
Overall Trade
Source: Bhutan Trade Statistics 2016
Imports
Source: Bhutan Trade Statistics 2016
Source: Bhutan Trade Statistics 2016
Proposed Policy on Phase out of old vehicles
(1) National Transport Policy (Final revised)
Policy Objective 4.1.6: Systematically reduce pollution from
transport sector to contribute to maintain pristine environment for
safeguarding human health and reduce Environmental footprint
4.1.6.3 RGOB will frame appropriate regulations related to end of life of vehicles. This would also cover the process of disposal of vehicles once they reach their end of life.
4.1.6.4 Differential taxes, tax exemptions on electric & hybrid vehicles will be provided to promote use of vehicles designated as fuel-efficient. Measures such as high ‘feebates’ or fuel surcharge will be explored to dis-incentivize private users from buying personal-use diesel vehicles.
Proposed Policy on Phase out of old vehicles
(2) Vehicle Emission Road map 2017
(3)Strategy for Carbon Commercial Vehicles in Bhutan
2017.
Vehicle Emission Standards
The Constitution mandates that Bhutan should maintain 60% forest cover for all times.
At the 15th Conference of Parties to the United
Nations Framework Convention on Climate Change in Copenhagen 2009, Bhutan declared itself to remain carbon neutral. Made commitment to maintain Bhutan’s status as a net sink of Greenhouse Gases by ensuring that greenhouse gas emission levels do not exceed the sequestration capacity of the country’s forests.
Current Emissions Scenario in Transport Sector
Contribution of transport sector to CO2 emissions in Bhutan
The 2000 National GHG
inventory identifies the energy
sector as the second highest
contributor of GHG emissions
after agriculture, of which the
transport sector was
responsible for 118.11 Gg of
CO2 equivalent, or about 45
percent of all energy-related
emissions and about 7.6
percent of the total GHG
emissions.
The graph depicts the
emissions from the energy
sector vis-à-vis the emissions
from transport sector.
177
228
376 361
348
0
50
100
150
200
250
300
350
400
2005 2010 2020 2030 2040
Emissions from road transport (ktCO2e), 2005-2040
Baseline Projections for Transport Sector In 2040, the total emissions from Bhutan’s economy are projected to be 4.7
million t CO2e or more than double the level in 2010, but still below the
expected sequestration of 6.3 million t CO2e.
• In the course of the 35 year period 2005-2040, the emissions from
the road transport sector are projected to increase from 177 kt
CO2e to 348 kt CO2e, showing a 96% increase in emissions
from the sector in the 35-year time period.
• The energy consumption of the road transport sector is projected
to increase from 55.09 toe in 2005 to 108.6 toe, showing a 97%
increase in the energy consumption from the sector.
• In the course of the 35 year period 2005-2040, the share of
emissions from the road transport sector to total emissions is
projected to go down from 49.6% in 2005 to 39.3% in 2040.
• This implies that the emissions from the transport sector
would grow at a smaller pace as compared to the overall
emissions from Bhutan.
357
468
905 906 885
177 228
376 361 348
0
200
400
600
800
1000
2005 2010 2020 2030 2040
Energy sector emissions (ktCO2) Road transport emissions (ktCO2)
Vehicle Pollutant Emissions Bhutan 2015 (in tons
and as share)
Vehicle category PM NO2 SO2
tons Share tons Share Tons share
Passenger cars 9.5 24% 174 10% 12
28%
Taxis 0.9 2% 29 2% 2
5%
Motorcycles 0.1 0% 13 1% 0
1%
Heavy Duty Vehicles
(HDVs) 28.3 73% 1,509 88%
30
67%
Total 38.9 1,724
45
Source: Grütter Consulting, 2017
Emission Standard for Motor Vehicle
• Permissible level of emission for every motor vehicle shall be:
•
• Diesel: 75% Hartridge Smoke Unit (HSU) for vehicles registered before 1/1/2005 and 70% HSU for vehicles registered after 1/1/2005
•
• Petrol: 4.5%Carbon Monoxide(CO) for vehicles registered before 1/1/2005 and 4%CO for vehicles registered after 1/1/2005
•
• The permissible smoke density level and emission level for all other pollutants present in vehicular exhaust (like hydro carbons, oxides of nitrogen, etc.) shall be as laid down by the National Environment Commission from time to time.
Vehicle Emission Targets Bhutan (Vehicle Emission Road Map)
1. Average annual air quality levels of all air pollutants are by 2025 below WHO guideline standards.
2. Vehicle emissions of SO2, NO2 and PM are by 2030 65 to 95% lower than in 2015.
3. CO2 emissions of the transport sector are by 2030 25% lower than under a Business as Usual scenario.
Future Policies Proposed
1. In line with the Indian fuel standard Bhutan will only import diesel and gasoline with less than 50ppm sulphur as of 01.2018 and diesel and gasoline with less than 10ppm sulphur as of 01.2021.
2. Bhutan will implement in line with India new vehicle emission standards for gasoline and diesel vehicles requiring as of 01.2018 BS-IV (equivalent to Euro 4) and as of 01.2021 BS-VI (Euro 6).
3. Bhutan will upgrade the current Inspection/Maintenance system improving
impact and controls. 4. Bhutan will restrict the import of diesel powered cars and light vehicles of
less than 3.5t as of 01.2018. 5. Bhutan will design a low-carbon vehicle strategy and tap international
climate finance to assist in the implementation of latter.
Impact of Ban of secondhand and
reconditioned vehicles
(1) Save the country from being a scrap dump yard
(2) Reduction in GHG emissions
(3) Cleaner, safer and more efficient vehicles
(4) Promotion of eco-friendly and mass transport
system.
(5) Help in de-congestion.
Next Steps
1. Implementation of the National Transport Policy
2. Promotion of Eco-friendly vehicles (start with replacement of 300 Taxis with EV Taxis)
3. Implement Low Carbon Vehicle Strategy.
4. Implementation of the revised Surface Transport Act.
5. Continue with the Ban on Import and work on tightening of standards.
6. Implementation of 12th Five Year Plan (100 buses, 300 electric taxis, etc.)
Glimpses of Transport in Bhutan
City Bus Parking in Thimphu Main Street in Thimphu
Karma Pemba
Chief Transport Officer
Road Safety and Transport Authority
Bhutan
Email: [email protected]
Mobile: 97517744402
THANK YOU
