Fuel EfficiencyNews & Events

Vehicle fuel economy labelling in the Philippines becomes mandatory

Gas Station

President Rodrigo Duterte approved the “Energy Efficiency and Conservation Act” of the Philippines last April 12, 2019. The law, also known as Republic Act (RA) 11285, is an “act institutionalizing energy efficiency and conservation (EE&C), enhancing the efficient use of energy, and granting incentives to energy efficiency and conservation projects.” It seeks to promote the development and utilisation of efficient renewable energy technologies, reinforce related laws, and ensure a market-driven and comprehensive approach to the nation’s energy efficiency, conservation, sufficiency and sustainability. The Department of Energy (DOE) is the lead agency for this law and is mandated to lead the planning, formulation, development, implementation, enforcement, and monitoring of energy management policies and other plans and programs relevant to energy efficiency and conservation.

The guidelines on vehicle fuel economy labelling (VFEL) drafted by DOE along with the labelling guidelines for other energy-consuming products (e.g., air-conditioners, refrigerators, and lights) as part of the Philippine Energy Standards and Labelling Program (PESLP) will now form part of the implementing rules and regulations (IRR) for the EE&C Act. The VFEL guidelines for light duty vehicles (LDVs) were finalised early 2019 and were a product of series of consultations with the private sector representatives composed of vehicle manufacturers, importers and dealers, together with relevant government agencies such as the Department of Transportation, Department of Trade and Industry, and the Department of Environment and Natural Resources, and non-government and academic organisations.

With the enactment of the EE&C law, vehicle FE labelling for new LDVs that will be sold in the market will now become mandatory for the Philippines. As a result of the previous consultations, DOE has provided time for the private sector to transition – the vehicle labelling policy will be implemented first on a voluntary basis from 2019 to 2020 and will then be mandatory afterwards. The draft IRR mandates that at the point-of-sale (e.g., showrooms) of new passenger cars and light commercial vehicles, the vehicles should have clear energy labels showing fuel economy ratings (in km/L) and a star rating scale, which will inform consumers of the fuel efficiency of the vehicles and allow them to consider potential fuel savings they can get when deciding which vehicle to buy.

The Philippine government hopes that by implementing the vehicle FE labelling policy as well as the entire EE&C law, all individuals, government offices, business entities and various units of the society, will adopt “a national way of life geared towards the efficient and judicious utilization of energy”.

This initiative is being supported by the German Federal Ministry of Economic Cooperation and Development (BMZ) through the GIZ Project “Energy Efficiency and Climate Change Mitigation in the Land Transport Sector in the ASEAN Region” or Transport and Climate Change (TCC) Project, and in collaboration with UN Environment and Clean Air Asia.

Photo credit: Kai Huang (taken from: https://www.entrepreneur.com.ph/startup-tips/working-model)