Negotiations in the US between its government and the auto industry are centered on mileage standards of future vehicles from the current level of an equivalent of about 11 kilometers per liter to 24 kilometers per liter by 2025. It may seem a big jump, but compared to European standards, America still lags behind.
If these new standards, which translate to a five percent increase in mileage a year, are passed into law, there will be marked improvements in emission levels as well as significant reductions in the consumption of oil-based petroleum for vehicles in the US.
The American auto industry, as expected, is warning that these new mileage standards would increase the cost of vehicles. The upside, on the other hand, points to considerable savings for motorists in fuel costs, an amount that more than offsets the higher vehicle tag price.
Concerns by workers in the auto industry of a slowdown in sales because of higher unit prices could also be debunked as in the recent high sales of Ford and Chevrolet with its fuel-economy models Fiesta and Cruze, respectively, which are both priced higher.
Effect on local market
Definitely, an improvement in the fuel efficiency of American-branded cars will have its trickle-down effect on Filipino consumers since there has been a recent upsurge in preferences for such brands. With the high price of gasoline and other petroleum-based automotive fuels, people are always on the lookout for more fuel-efficient engines.
This bold move by the US’s Obama administration will bring its fuel mileage standards closer to that of Europe, Japan and even China. Together, these four countries account for the largest automobile markets in the world.
Concern on emissions
The other thorny side of the auto industry, and this applies not only to the US but to all countries including the Philippines, has to do with emission standards, or in more layman terms, clean air.
On the side of regulation, the Philippines recently mandated emission limits for new passenger and light duty motor vehicle types to be introduced in the country starting 2016 to comply with Euro 4 emission limits but subject to Euro IV fuel availability.
Euro 4 standard is the second strictest emission measurement of the European Emission Standards. To reach this level, vehicle emission of carbon monoxide (CO), hydrocarbon (HC), nitrogen oxide (NOx) should be 1 g/km or below.
Compared to other Asian countries, the Philippines will be on the laggard side. Looking at the good news, at least the jump from Euro 2 (which was approved for 2008) to the Euro 4 level has already been cast in stone, although we will be seeing the positive benefits after 2016 only.
Push by environmental advocates
Environmental advocates have been pushing for an earlier compliance date given the fact that it takes about 15 years for Filipinos to replace their vehicles. But the bureaucratic machinery is slow and susceptible to compromises especially with strong industry lobby groups.
In fact, one big hurdle will be for the government to propose the adoption of Euro 4 fuel specifications. Otherwise, having Euro 4 vehicles without cleaner fuels will water down any benefits to be derived.
The sooner the government works on passing a law bringing fuel standards to higher levels, the better. This will help the oil and vehicle industries to sufficiently plan for the investments needed to comply with any new standards.
Improving, but not yet up to standard
Recent reports on the air quality in Metro Manila have shown improving trends. Total Suspended Particulates (TSP), for example, have been reduced by 15 percent from 2004 to 2008. This is echoed by the downward trend from 2003 through 2007 of bronchitis morbidity and air pollution.
Based on World Health Organization standards, however, pollution in Philippine cities in still high if we measure TSP levels. The Clean Air Initiative for Asian Cities (CAI-Asia) Center, for example, estimates that the cost of air pollution to Manila residents alone is about half a billion dollars a year.
Controlling vehicle emission
Vehicle emission continues to be the single biggest polluter of air in the country, and there are so many doable measures by government that have to be put in place.
Among the issues that need priority attention from our bureaucrats are emissions coming from two-stroke tricycles that are still allowed to run on our streets, second-hand engines used by public utility vehicles, and unchecked or seasonally policed smoke belching from motor vehicles.
Other ticket items that can contribute a bigger impact on cleaning our air include strengthening sustainable urban transport policies to reduce traffic congestion, improve mobility and road safety, and mitigate transport’s contribution to air pollution.
Clean air statutes and initiatives
Looking back to the last 10 years after the country passed its landmark Clean Air Act, there is so much to celebrate. Two supplementary laws had been passed: the Bio-fuels Act and the Renewable Energy Act.
Since a decade ago, Filipinos enjoy cleaner gasoline through lowering of the sulfur content of diesel and the benzene and aromatics of gasoline. A growing number of local governments have been encouraging “green” policies in their respective areas.
Marikina has its bikeways. Fort Bonifacio in Taguig has its electric tricycles. Cubao has its electric cars. Electric jeepneys are now a common sight in Makati’s streets. We have smoke-free ordinances in many cities now.
There is growing patronage of LPG fuel for vehicles, particularly taxis. The energy department continues to promote and encourage use of CNG. We have a more efficient mass transport system that is continuously expanding to the suburbs and adjacent provinces.
Yet, so much more still needs to be done. This will definitely need a stronger resolve from the whole nation.
Olympic-style UAAP opening
Universities Athletic Association of the Philippines (UAAP), the other major “mother league” in Metro Manila, opens this weekend its new season hosted by Ateneo de Manila University with an Olympic-style parade of all athletes. Congratulations to the UAAP Management Committee headed by Ricky Palou for adopting this idea of giving recognition to all UAAP players to start this year’s competitions.
Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at reydgamboa@yahoo.com. For a compilation of previous articles, visit www.BizlinksPhilippines.net.