1. Fuel Economy/Consumption Tunisian Case study Center for Environment and Development For The Arab region and Europe.

2. Fuel Economy/Consumption Fuel economy (Miles per Gallon) A measure of maximum distance covered by a vehicle per unit of fuel Fuel consumption (Liter per/ 100 km) Amount of fuel saved in lower ranges of MPG higher than those in higher ranges Consumer convenience

3. Vehicle Energy Efficiency Engine Losses (friction &pump) Aerodynamics & Tires Transmission Terrain Balancing shafts Bore-to-stroke ratio Weight& Fuel

4. Standards European Union Entire fleet based on mass of a vehicle Sliding scale application of standards Tightening regulations Overlooking technology USA First standards: determined solely by production level Modified Standards: Size based accounting for sales levels. Sole reliance on vehicle size

5. Driving cycle Enforcement agency Test figures presented by manufacturers Cycle based on local conditions: driving patterns and behavior, road types and elevations levels, etc. CAFÉ, NEDC, Japanese and South Korean.

6. Approach and limitations GFEi definition of LDVs Sales of new LDVs in the study years. Data obtained from manufacturers through an automotive markets consultant Official figures for co2 emissions and fuel economy/consumption are used based on NEDC Data was not obtained for 1% of new LDVs. Parallel market sales were not obtained

7. Total Number of Vehicles on the Road

8. LDVs sales

9. LDVs Sales

10. Tunisian Macro Indicators Motorization rates (Vehicles per 1000 inhabitants): 121- 124 much higher than Egypt and Moroccan (OICA, 2012) Urbanization rate: 60-odd %, considerably higher than both Egypt and Morocco GDP per capita at PPP : more than $9,500 for 2011- 2013 (CIA, 2014) Average GDP growth from 2001 till 2014 is 3.71

11. Tunisian Trends Explanation Motorization rate High urbanization rate + ? Slight variation in total number of LDVs sales Total number of vehicles does not show correlation with GDP growth Higher GDP per capita

12. Policy Environment Tariff barriers are among the highest in the world reaching up to 200% + 12% VAT + 3% custom normality fee. Quotas for Shaabiya cars (Trade deficit, arrangements with local manufacturers of components) Luxury cars subject to high consumption tax rates Parallel market Popular dissatisfaction

13. Fuel economy/Consumption data

14. Fuel economy/consumption data

15. CO2 Emissions Data

16. CO2 Emissions data

17. Trends Fuel consumption/economy lower than both OECD and non-OECD averages of 7-8 Liter/100km levels for 2005, 2008 and 2011 levels. LDVs and CO2 emissions data display similar patterns Fuel economy/consumption of diesel and petrol LDVs are close despite the use of larger diesel LDVs

18. Trends Diesel LDVs comprise luxury cars and 4x4s in addition to pickups. For petrol LDVs unweight average curve is consistently higher than weight one. For diesel LDVS weight average is higher than unweight one.

19. Explanation Quota system is heavily regulating LDVs sold Preference for European cars thus capitalizing on growingly stringent European standards Small engine popular cars Less sophisticated variants, missing out on opportunities for fuel economy/consumption improvement.

20. Needs

21. Opportunities Environment is set for the implementation of import restrictions Traditions of heavy regulation pave the way for the introduction of fuel economy/consumption standards Increasing democratization, providing venues for a transparent, across-the-board societal dialogue.

22. Way Forward Development of a local driving cycle Development of fuel economy/consumption standards tailored for the local conditions. Capitalizing on existing enabling conditions for LDVs markets regulation: public & private bus networks; a quota system in place Creating a win-win situation for consumers by opting for more efficient technologically advanced vehicles

23. Way Forward Linking policies to attainable fuel consumption savings in absolute terms

24. Recommendations Establishment of a multi-stakeholder resident committee to prepare a roadmap for the introduction of fuel economy standards Drawing on international expertise in advising the committee on preparation and implementation of standards and import restrictions linked to accruing fuel savings.