The ASEAN region has become one of the world’s largest car and motorcycle markets as vehicle ownership grows with economic development and rising incomes. Conversely, the automotive industry has also become an important pillar for economic development in several AMS. In terms of the region’s energy demand, transport needs a major 27% of which more than 80% stems from cars, trucks and motorcycles. Transport consumes more oil than any other sector in ASEAN. In addition, transport is a fast-growing energy sector, forecasted by the 4th ASEAN Energy Outlook to grow more than 5% each year along with increasing motorisation, ranking second after the industrial sector.
Following global policy trends and based on national energy and environmental concerns, AMS have started to introduce domestic policies to promote improvements in the energy efficiency of vehicles. While AMS appear determined to address transport fuel consumption, the level of ambition, policy approaches and level of progress are varied and diverse across ASEAN, partially due to the different stages of economic development among countries. Learning from the policy efforts in other major automotive markets of the world, there is great opportunity for ASEAN countries to decouple motorisation trends from energy demand and thus grow more sustainably.
Against this background, the Kuala Lumpur Transport Strategic Plan (KLTSP) 2016-2025 set a specific goal on the formulation of a fuel economy roadmap for the transport sector in ASEAN including policy guidelines (ST-1.3.2). Which will be supported through the establishment of a fuel economy platform (ST-1.3.1), also facilitated by TCC. The plan also aims to spur ‘support to the development and adoption of nationally appropriate policies for cleaner fuels and vehicles’ (ST-1.3.3).
In support of the KLSTP, the TCC project helps selected ASEAN governments in developing and strengthening their fuel economy policies and the underlying data systems through trainings, workshops and expert advice. At the regional level, the project’s assistance focuses on realising the development of an ASEAN fuel economy roadmap.
In order to build momentum for change towards higher fuel economy at regional and national level, the project facilitates and engages in interministerial coordination, multistakeholder dialogues and expert networks. We mobilise local and international knowhow and support regional exchange. One exemplary initiative here is the ASEAN fuel economy platform, which is a regional forum of experts from the public sector, the academe, international organisations and NGOs. This platform connects policy and research, allows for peer-learning and drives forward the development of the regional fuel economy roadmap.