ICCT Annual Report, 2022

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ANNUAL REPORT 2022

A ANNUAL REPORT 2022


TABLE OF CONTENTS
About us.......................................................................................................................................1

ICCT highlights........................................................................................................................... 2

ICCT highlights by region........................................................................................................4

Asia......................................................................................................................................... 5

China....................................................................................................................................... 8

Europe................................................................................................................................... 11

India...................................................................................................................................... 14

Latin America.......................................................................................................................17

North America.................................................................................................................... 20

Global...................................................................................................................................24

International partnerships................................................................................................ 27

Transatlantic Transportation Decarbonization Summit............................................. 30

Supporters.................................................................................................................................31

Financials..................................................................................................................................32

International Council on Clean Transportation


1500 K Street NW, Suite 650
Washington, DC 20005

communications@theicct.org | www.theicct.org | @TheICCT

© 2023 International Council on Clean Transportation


ABOUT US
Global demand for transportation is surging, and with it, inexorably,
carbon emissions—not to mention other forms of air pollution.
Transforming the technologies and systems that move people and
goods around the world is an urgent imperative.

The International Council on Clean Transportation (ICCT) is an


independent nonprofit organization founded in 2001 to provide
first-rate, unbiased research and technical and scientific analysis to
environmental regulators.

Together, these efforts are projected to result in billions of tons of


carbon dioxide reductions and prevent thousands of premature deaths
over the next decade and beyond. More information can be found on
our website at www.theicct.org.

MISSION
The International Council on Clean Transportation is an independent
nonprofit organization founded to provide first-rate, unbiased research
and technical and scientific analysis to environmental regulators. Our
mission is to improve the environmental performance and energy
efficiency of road, marine, and air transportation, in order to benefit
public health and mitigate climate change.

1 ANNUAL REPORT 2022


ICCT HIGHLIGHTS
Figures: Governments with targets for phasing out sales of internal combustion vehicles:
(https://theicct.org/phase-out-map-hdv/; https://theicct.org/phase-out-map-ldv/)

Governments with official targets to 100% phase out sales or registrations of new internal combustion engine light-duty vehicles
(passenger cars and vans/light trucks) by a certain date* (Status: Through September 2022)

2030 Iceland (cars)


2035 United Kingdom (cars and vans)
2025 Norway (cars and vans)
2030 Denmark (cars)
2035 Canada 2030 Netherlands (cars)
(light-duty vehicles)** 2030 Austria (cars and vans)
2035 New York,
2030 Slovenia (cars and vans)
2030 Washington, United States
United States (cars and light trucks) 2030 Greece (cars and vans)
(light-duty vehicles) 2040 France (cars and vans)
2035 Massachusetts,
2040 Spain (cars and vans)
2035 California, United States
(cars and light-
United States duty trucks)
(cars and light trucks)
2050 Costa Rica
(light-duty vehicles)
2035 Cape Verde
(cars and vans)
2030 Singapore
(cars)
2035 Chile
(light-duty vehicles)

Target to allow the sale or registration Target to allow the sale or registration
of new BEVs and FCEVs only of new BEVs, FCEVs, and PHEVs only
2025 2030
2030 2035
2035
2040
2050
* Includes countries, states, and provinces that have set targets to only allow the sale or registration of new battery electric vehicles (BEVs), fuel cell electric vehicles (FCEVs), and plug-in hybrid electric
vehicles (PHEVs). Countries such as Japan with pledges that include hybrid electric vehicles (HEVs) and mild hybrid electric vehicles (MHEVs) are excluded as these vehicles are non plug-in hybrids.
** The Canadian province of British Columbia has set its 2040 target into binding regulation; the Canadian province of Québec has also set a target for 2035.

Governments with targets toward phasing out sales of internal combustion engine trucks by a certain date
(Status: Through September 2022)

Norway
United Kingdom 2030 New trucks
2035 New 50% zero-emission
heavy-duty trucks
(≤ 26 tonnes) 100%
zero-emission
2040 New
heavy-duty trucks
(> 26 tonnes) 100%
zero-emission

Austria
2030 New heavy-duty
trucks (< 18 tonnes)
100% zero-emission
2035 New heavy-duty
trucks (> 18 tonnes)
California (United States)
100% zero-emission Hainan (China)
2035 New rigid trucks 75%
zero-emission or near zero-emission 2019 New sanitation
2035 New tractor trucks 40% vehicles 50% electric
zero-emission or near zero-emission
2045 Medium- and heavy-duty
vehicle fleet 100% zero-emission Cape Verde Pakistan
2035 New medium- 2040 New heavy-duty
New York (United States) and heavy-duty trucks 90% electric
2045 New medium- and heavy-duty trucks 100% electric
trucks 100% zero-emission 2050 Medium- and
heavy-duty truck fleet
100% electric
Chile
2035 New mobile machinery used
in mining, forestry, agricultural, and
construction (> 560 kW) 100%
zero-emission
2040 New mobile machinery used
in mining, forestry, agricultural, and
construction (> 19 kW) 100%
zero-emission
2045 New medium- and heavy-duty Governments with official targets
trucks 100% zero-emission
U.S. states Memorandum of Understanding*
Global Memorandum of Understanding (MoU)*

U.S. states Memorandum of Understanding (MoU) Global Memorandum of Understanding (MoU)


California, Colorado, Connecticut, Hawaii, Maine, Maryland, Massachusetts, Austria, Canada, Chile, Denmark, Finland, Luxembourg, Netherlands,
New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, New Zealand, Norway, Portugal, Scotland, Switzerland, Turkey,
Vermont and Washington and the District of Columbia United Kingdom, Uruguay, Wales
2030 New medium- and heavy-duty vehicles 30% zero-emission 2030 New medium- and heavy-duty vehicles 30% zero-emission
2050 New medium- and heavy-duty vehicles 100% zero-emission 2040 New medium- and heavy-duty vehicles 100% zero-emission

Note: Governments with an at least 40% new truck sales target.


* Not necessarily yet reflected in an official national/state policy document such as a climate or transport strategy/plan, in a law, or in a similar framework.

2 ANNUAL REPORT 2022


Figure: Passenger car emissions and fuel consumption (https://theicct.org/pv-fuel-economy/)

Passenger car CO2 emissions and fuel consumption, normalized to NEDC


180

Fuel consumption (l/100 km gasline equivalent)


160 7
CO2 emissions (g/km), normalized to NEDC

140 6
Brazil
2022: 122

120 India
2022: 113
China 2025: 93 5
Mexico 2027: 87

100
4
Chile 2030: 81
80
Japan 2030: 74
Canada 2026: 76 3
S Korea 2030: 65
60
New Zealand 2027: 57

2
40 US 2032: 38
Historical performance
20 Enacted targets 1

Proposed targets UK 2035: 0


EU 2035: 0
0 0
2010 2015 2020 2025 2030 2035
Note: U.S. 2026 target is adjusted in proposed standards for 2027 and later vehicles to reflect differences in various credits between
the current rule and the proposal; UK fleet-average targets estimated based on non-ZEV CO2 emissions and ZEV mandate.

3 ANNUAL REPORT 2022


ICCT HIGHLIGHTS BY REGION

4 ANNUAL REPORT 2022


ASIA
Due to its status as one of the largest combined emerging economies
in the world, fuel consumption in Southeast Asia has more than
doubled in the past decade. ICCT projections show that without a
strong shift towards transport decarbonization in Southeast Asia, the
region would reach the level of India’s annual GHG emissions from
transport by 2050. ICCT provides technical assistance in accelerating
the deployment of electric buses in cities as well as supporting a
transition to soot-free heavy-duty emission standards. ICCT currently
plays a role in advancing light-duty and 2- and 3-wheelers fuel
efficiency regulations in Indonesia, Vietnam, and Thailand, among
others. ICCT’s fuels team is particularly active in Indonesia, where a
strong focus has been placed on sustainably sourced biofuel sources
such as cellulosic ethanol.

In 2022, ICCT researchers studied electric vehicle deployment in the


region, including the development of electric two- and three-wheeler
transport, fuel efficiency standards, and the potential volumes of
sustainable fuels that could be produced from waste oils.

5 ANNUAL REPORT 2022


THE POTENTIAL OF TAXATION POLICIES
TO DRIVE LOW-EMISSION VEHICLE
PURCHASES
ICCT researchers assessed national-level taxation and subsidy policies for passenger
vehicles across 18 Asian and Asia-Pacific countries and compared the consumer
ownership costs of a gasoline, a hybrid electric, and a battery electric vehicle. The
countries analyzed account for 99% of all passenger vehicle sales in Asia and the
Asia-Pacific. The authors found that reductions in one-time taxes carry the greatest
potential for creating benefits for efficient vehicles and electric vehicles through tax
policy. Additionally, the results showed that most countries, especially those with high
taxation levels, would benefit from changing the current displacement- or weight-
based taxes to a continuous fuel efficiency or CO2-based tax based on linear metrics,
as this can successfully reduce the consumer ownership cost of more-efficient vehicles.

Figure: Six-year consumer ownership costs in 18 select markets.

Base price Import duty VAT One-time tax Annual tax Fuel/electricity
China Amount of subsidies
Nissan Leaf
Japan Amount of subsidies
India
South Korea Amount of subsidies
Australia
Iran
Malaysia
Indonesia
Saudi Arabia
Thailand
Vietnam
Israel
Philippines
UAE
Pakistan
New Zealand
Kuwait
Amount of rebates
Singapore
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
Consumer ownership cost (in USD)

(Source: Overview of Asian and Asia-Pacific passenger vehicle taxation policies and their potential to drive
low-emission vehicle purchases, https://theicct.org/publication/asia-vehicle-taxation-jan22/)

PUBLICATIONS OF NOTE:
Fuel efficiency standards to decarbonize Australia’s light-duty vehicles (working paper)
https://theicct.org/publication/pv-australia-co2-standards-dec22/

Zero-emission vehicle deployment: ASEAN markets (briefing)


https://theicct.org/publication/hvs-zev-deploy-asean-apr22/

Using policy and regulation to pave the way for two-wheeler electrification in Vietnam (briefing)
https://theicct.org/publication/vietnam-asia-e2ws-lvs-mar22/

An estimate of current collection and potential collection of used cooking oil from major Asian
exporting countries (working paper)
6 ANNUAL REPORT 2022
https://theicct.org/publication/asia-fuels-waste-oil-estimates-feb22/
Figure: Share and mass of shipping PM2.5 emitted by ships burning residual fuel sold in Singapore

Share of PM2.5 PM2.5 emissions


Emissions within ports
(countour range) ≤5 mt
≤5%
≤10% ≤18 mt
≤15% ≤45 mt
≤20% ≤656 mt
≤25%
≤30%
≤35%
≤42%
Singapore

(Source: Exporting emissions: Marine fuel sales at the Port of Singapore, https://theicct.org/publication/marine-singapore-fuel-emissions-jul22/)

Figure: Change in electric two-wheeler market share in key ASEAN countries in 2019 and 2020

10%
2019 2020
8.54%
8%
E2W market share

6%
5.14%

4%

2% 1.34%
0.90% 1.10%
0.52%
0.05% 0.10%
0%
Vietnam Philippines Indonesia Thailand

(Source: Promoting the development of electric vehicles in Vietnam,


https://theicct.org/publication/asia-pacific-evs-promoting-development-evs-vietnam-dec22/)

7 ANNUAL REPORT 2022


CHINA
China is the largest market for new light- and heavy-duty vehicles. In
addition, seven of the world’s ten largest container ports are in China.
The nation’s industrial dynamism has also created some of the world’s
worst air-quality issues and made China the world’s biggest carbon
emitter. Policymakers have responded with stringent, innovative
regulations, and China is moving into a leadership role in transport
climate policy. The ICCT’s China staff supports effective regulation of
emissions in the transport sector and works to provide officials with
sound, reliable technical and scientific data.

Research in China in 2022 included an analysis of policies in regions


with high uptake of new energy vehicles, the use of low-carbon fuels
in coastal shipping, and the potential of establishing low- and zero-
emission constructions zones in the country.

8 ANNUAL REPORT 2022


THE EVOLUTION OF HEAVY-DUTY
VEHICLES IN CHINA
Researchers at the ICCT evaluated the effectiveness of policies in curtailing emissions
from heavy-duty vehicles over the 2012–2021 period to inform future regulations. The
assessment found that integrated emissions control regulation for both pollutant and
GHG emissions could be enacted to help guide development of heavy-duty vehicles.
In addition, switching from the current fuel consumption standard to regulation of
greenhouse gas emissions will cover more greenhouse gases such as N2O and CH4
and allow the HDV industry to balance control of pollutants and GHG emissions under
various technology combinations. The research also found that electrification is key
to decarbonizing road transport in China, although clean diesel engine technologies,
including improved fuel efficiency and performance, could still be encouraged.

Figure: Percent change in key measures of diesel HDVs, 2012–2021.

55%
Percent change in key measures of diesel HDVs 2012-2021

50%

45%
Total weight
40%

35%
Power
30%

25%

20%
Engine displacement
15%

10%
CO2 emissions
5%

0%

-5%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

(Source: The evolution of heavy-duty vehicles in China: A retrospective evaluation of CO2 and pollutant emissions from
2012 to 2021, https://theicct.org/publication/china-hvs-ndc-tia-evolution-hdv-emissions-oct22/)

Figure: Geographical distribution of the 30 leading cities and their new energy passenger car
technology choices, 2021

PUBLICATIONS OF NOTE:
Recommendations for the next generation of China’s heavy-duty vehicle emission standard based on testing
of China VI vehicles (working paper)
https://theicct.org/publication/china-hdv-emissions-testing-oct22/

Life-cycle analysis of greenhouse gas emissions of hydrogen, and recommendations for China (white paper)
https://theicct.org/publication/china-fuels-lca-ghgs-hydrogen-oct22/

Assessment of leading new energy vehicle city markets in China and policy lessons (report)
https://theicct.org/publication/china-city-markets-new-energy-sep22/

Decarbonizing China’s coastal shipping: The role of fuel efficiency and low-carbon fuels (working paper)
9 ANNUAL REPORT 2022
https://theicct.org/publication/china-marine-decarbonizing-chinas-coastal-shipping-jun22/
Beijing

Shijiazhuang Tianjin
Taiyuan

Jinan
Qingdao
Luoyang
Zhengzhou
Xi’an

Nanjing Suzhou
Hefei

Wuxi
Chengdu Wuhan Shanghai
Hangzhou
NEPC share Ningbo
Chongqing Jinhua
10%
Taizhou (Zhejiang)
20% Changsha
Wenzhou
30%
40%
Liuzhou
Guangzhou
Powertrain Dongguan
BEV Nanning
PHEV
Shenzhen
Haikou Foshan

(Source: Leading new energy vehicle city markets in China: A 2021 update,
https://theicct.org/publication/ev-china-city-markets-2021-update-nov22/)

Figure: Registration of new energy commercial vehicles in top cities, 2012–2020

200 Other
Foshan
Qingdao
Annual registrations (thousands)

Xiangyang
Wuhu
150 Wuhan
Hefei
Chongqing
Dongguan
Hangzhou
100 Suzhou
Changsha
Nanjing
Zhengzhou
Xi’an
50 Tianjin
Shanghai
54% Guangzhou
Chengdu
Beijing
0 Shenzhen
2012 2013 2014 2015 2016 2017 2018 2019 2020
(Source: Assessment of leading new energy vehicle city markets in China and policy lessons,
https://theicct.org/publication/china-city-markets-new-energy-sep22/)

10 ANNUAL REPORT 2022


EUROPE
Europe, the third-largest vehicle market in the world, is the home of
giant automotive, aircraft, and shipbuilding industries. The European
Union has been a leader in environmental policy, and it plays an
indispensable and growing part in global climate change efforts.
ICCT Europe played the central role in bringing to light the “emissions
gap”— the discrepancy between official, type-approval values and
real performance in everyday operation. ICCT research contributes to
the technical foundations underlying the EU’s plans to regulate CO2
emissions and reform legislation supporting low-carbon fuels in Europe.

In 2022, ICCT researchers provided analysis to inform the next phase


of emission standards for light- and heavy-duty vehicles, in addition
to information on how regulatory definitions could better reflect the
real-world emissions of alternative fuels. Researchers also assessed
the adoption of electric vehicles and corresponding policy support
across regions.

11 ANNUAL REPORT 2022


CO2 STANDARDS FOR TRUCKS AND BUSES
IN EUROPE
ICCT researchers in Europe assessed the stringency of heavy-duty CO2 standards
required to contribute towards Europe’s goal of climate neutrality by 2050. The analysis
found that manufacturer commitments to increase the number of zero-emission
heavy-duty vehicles would correspond to an emission reduction of 96% by 2050
relative to 2019—closely in line with the goal of the European Climate Law. To enshrining
these manufacturer commitments in regulation, the study found that the European
Commission should increase the heavy-duty CO2 standard to a reduction of at least 60%
in 2030, introduce a target of at least 90% for 2035, and introduce a phase-out date for
new combustion-powered trucks and buses of no later than 2040.

Figure: New vehicle fleet averaged annual emissions reduction relative to 2020 and corresponding 5-year targets. The
bars on the right denote the annual emissions reduction in heavy-duty vehicles in 2019 and by 2050.

+8%
0% 250
European Climate Law rel.
2019
-15%
Manufacturer Aligned Zero Emission Targets
Sustainable and Smart Mobility Strategy
Adopted Policies
New vehicle fleet averaged gCO2/tkm

-20% 200

Total HDV fleet emissions (MtCO2e)


-30%
reductions relative to baseline

-40%
-40% 150
-51%

-60%
-60%
100

-77%

-80%
-90% 50 -78%
-82%
-96%
-95%
-100% -96%
-98%
-100%
0
2020 2025 2030 2035 2040 2045 2050 2019 2050

(Source: The CO2 standards required for trucks and buses for Europe to meet its climate targets,
https://theicct.org/publication/hdv-co2standards-recs-mar22/)

PUBLICATIONS OF NOTE
Gas definitions for the European Union: Setting thresholds to reduce life cycle greenhouse gas
emissions (working paper)
https://theicct.org/publication/gas-definitions-thresholds-oct22/

Real-world usage of plug-in hybrid vehicles in Europe: A 2022 update on fuel consumption,
electric driving, and CO2 emissions (white paper)
https://theicct.org/publication/real-world-phev-use-jun22/

A review of the AFIR proposal: Public infrastructure needs to support the transition to a
zero-emission truck fleet in the European Union (white paper)
https://theicct.org/publication/afir-eu-hdv-infrastructure-mar22/

Battery electric vehicle access in Europe: A comparison of rural, intermediate, and urban
12 ANNUAL REPORT 2022
regions (working paper) https://theicct.org/publication/bev-access-europe-jun22/
Figure: Targets for the public procurement of clean vehicles under the Clean Vehicles Directive
by EU Member State

2021–2025 2026–2030

24%

45%

65%

(Source: The rapid deployment of zero-emission buses in Europe,


https://theicct.org/publication/the-rapid-deployment-of-zero-emission-buses-in-europe/)

Figure: Hydrogen fuel subsidy needed to achieve total cost of ownership parity between fuel
cell electric trucks and diesel trucks by 2030, assuming onsite hydrogen production through
renewable electrolysis

10
Break-even H2 price Expected H2 price
9 4.40 €/kg
4.16 €/kg
Hydrogen price (€/kg)

8
2.19 €/kg
7 2.64 €/kg 2.77 €/kg
1.18 €/kg 2.48 €/kg
6
5
4
3
2
1
0
France Germany Italy Netherlands Poland Spain United
Kingdom

(Source: Fuel-cell hydrogen long-haul trucks in Europe: A total cost of ownership analysis,
https://theicct.org/publication/eu-hvs-fuels-evs-fuel-cell-hdvs-europe-sep22/)

13 ANNUAL REPORT 2022


INDIA
Air pollution, especially particulate matter, is a serious challenge
in India, and transportation is a significant factor in the nation’s
air-quality problems. The country’s vehicle fleet is expanding rapidly
with sales reaching 21 million in 2016, and the number of vehicles on
the road is expected to double to 200 million by 2030. In 2016, India
adopted Euro 6/VI-equivalent standards to go into effect in 2020. The
ICCT’s India staff works with policymakers to further mitigate vehicular
air pollution.

In 2022, ICCT researchers in India undertook studies on electrification


of on-road and non-road vehicles, alternative fuels, and policies to
decarbonize the transport sector.

14 ANNUAL REPORT 2022


DECARBONIZING INDIA’S ROAD
TRANSPORT
ICCT researchers performed a meta-analysis of eight of India’s key road transport
energy and emissions models, comparing assumptions, energy use, and CO2
emissions and considering the emission reductions that could be achieved by 2050
through policy efforts. The report found that, in a business-as-usual scenario without
additional policy interventions, the models generally expect a 3–4 times rise in energy
consumption and CO2 emissions between 2020 and 2050. However, interventions like
fuel efficiency improvements in combustion engine vehicles, vehicle electrification,
and increased use of alternative fuels could help abate 45%–50% of cumulative CO2
emissions between 2021 and 2050.

Figure: CO2 emissions trajectory under alternate scenarios. (HAS: High Ambition Scenario; AP:
Aggressive Policy scenario)

300K
Scenario
280K
HAS LowSales
260K HAS HighSales
AP HighSales
240K
AP LowSales
220K

200K
CO2 emissions (kilotons)

180K

160K

140K

120K

100K

80K

60K

40K

20K

0K
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
(Source: Decarbonizing India’s road transport: A meta-analysis of road transport emissions models,
https://theicct.org/publication/decarbonizing-india-road-transport-may22/)

PUBLICATIONS OF NOTE:
Incentives for electrifying agricultural tractors in India (working paper)
https://theicct.org/publication/india-hvs-evs-incentives-elec-tractors-india-oct22/

The potential of 48V hybrids in India’s light-duty vehicle market (white paper)
https://theicct.org/publication/india-ldv-48v-hybrids-jul22/

Battery swapping for electric two-wheelers in India: Strategy hinterlands (report)


https://theicct.org/publication/india-ev-battery-swapping-may22/

Hydrogen fuel for transport in India (working paper)


https://theicct.org/publication/india-fuel-hydrogen-cost-jan22/
15 ANNUAL REPORT 2022
Figure: Comparison of per-hour total ownership costs of agricultural tractors by different charging patterns and power price

600
Maintenance cost
Opportunity cost
500 Fueling cost
Insurance cost
Per-hour operational costs (INR)

Taxes and fees


400

300

200

100

0
Electric tractor 100% 4-hour 100% 4-hour 100% 10-hour 100% 4-hour Diesel tractor
Baseline charging charging + charge charging + free
low price agri power
(Source: Incentives for electrifying agricultural tractors in India, https://theicct.org/publication/india-hvs-evs-incentives-elec-tractors-india-oct22/)

Figure: Comparison of the mid-level and optimistic costs of green hydrogen production

Mid-level cost scenario Optimistic cost scenario


9 700

8
600

7
2019 US$ per kg hydrogen

500

2019 INR per kg hydrogen


6

400
5

4 300

3
200
2

100
1

0 0
2020 2030 2050 2020 2030 2050 2020 2030 2050
Ahmedabad Mumbai New Delhi
(Source: Hydrogen fuel for transport in India, https://theicct.org/publication/india-fuel-hydrogen-cost-jan22/)

16 ANNUAL REPORT 2022


LATIN AMERICA
Brazil is the fourth-largest vehicle market in the world and an
important factor in the global biofuels industry. ICCT supports
Brazilian governmental agencies, filling technical gaps for more
advanced vehicle emissions, fuel quality, and sustainable freight and
mobility policies. Other countries in Latin America offer valuable
insights into effective policymaking for smaller economies. In
Argentina, Chile, and Colombia, ICCT research provides essential
technical foundations for development of emissions and efficiency
standards, incentives for ultra-clean buses, market-based approaches
such as green freight programs, and innovative fiscal policies.

Research in 2022 which focused on Latin America involved a host of


issues in various transport sectors, including shipping emissions, fuel
and emission standards, and the transition to zero-emission light- and
heavy-duty vehicles.

17 ANNUAL REPORT 2022


ZERO-EMISSION VEHICLE DEPLOYMENT IN
LATIN AMERICA
ICCT Researchers surveyed the status of zero-emission vehicle (ZEV) development
in Latin American economies, focusing on the passenger car, truck, and bus sectors.
The study found that EV adoption is underway in some Latin American markets for
the passenger vehicle segment, but at an early stage, with Costa Rica, Colombia, and
Chile reaching new electric vehicle sales shares of about 0.5%. However, buses and
government fleets have made strides in electrification, with Chile and Colombia being
home to the largest fleets of electric buses after China. The research suggests that
Latin American markets would benefit from greater collaboration across many areas,
including improving ZEV cost-competitiveness, developing a dense nationwide network
of charging infrastructure, and replicating successful financing and business models for
scaling ZEVs in fleets.

Figure: EV sales share for passenger cars in 2020

4.0%
500 EVs

3.0% Israel
2020 electric passenger vehicle sales share (%)

Singapore
2.0%
Mauritius UAE
Ukraine
Jordan
1.0%

0.7%
Costa Rica
0.6%
Colombia Thailand
0.5%
Chile
0.4%
Uruguay
0.3% Lebanon Nepal
Turkey
0.2% Philippines
Serbia Malaysia
Brazil
0.1% Belarus
South Arica Kazakhstan
Morocco
0.0%
Africa Latin Eastern Middle Central/ ASEAN
America Europe East SouthAsia
Note: Israel, UAE, and Singapore are high-income countries

(Source: Zero-emission vehicle deployment: Latin America, https://theicct.org/publication/hvs-zev-deploy-latam-apr22/)

PUBLICATIONS OF NOTE:
Proyecto de modificación de la norma mexicana de rendimiento de combustible para vehículos
ligeros - NOM-163-SEMARNAT-ENER-SCFI-2013 (policy update)
https://theicct.org/publication/mexico-lvs-nom163-update-nov22/

Fuel economy standards and zero-emission vehicle targets in Chile (policy update)
https://theicct.org/publication/lat-am-lvs-hvs-chile-en-aug22/

Brazilian coastal shipping: New prospects for growth with decarbonization (working paper)
https://theicct.org/publication/brazil-marine-brazil-coastal-shipping-new-prospects-growth-
decarbonization-jul22/

18 ANNUAL REPORT 2022


Figure: Sales targets for zero-emission vehicles in Chile, through its National Electromobility Strategy

On-road vehicles
Off-road vehicles

Urban public transport 100% new incorporations

Light- and medium-duty vehicles 100% sales

Road freight transport


100% sales
and interurban buses

Mining, forestry, construction, and


100% sales
agricultural machinery (>560 kW)

Mining, forestry, construction, and


100% sales
agricultural machinery (>19 kW)

2030 2035 2040 2045


(Source: Fuel economy standards and zero-emission vehicle targets In Chile,
https://theicct.org/publication/lat-am-lvs-hvs-chile-en-aug22/)

Figure: Projected GHG emissions from cabotage in Brazil through 2031

Diesel (MGO) Fuel oil (HFO) 50% 2008


5
GHG emissions (million tonnes CO2e)

4.5

3.5

2.5

1.5

0.5

0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031

(Source: Brazilian coastal shipping: New prospects for growth with decarbonization,
https://theicct.org/publication/brazil-marine-brazil-coastal-shipping-new-prospects-growth-decarbonization-jul22/)

19 ANNUAL REPORT 2022


NORTH AMERICA
The United States pioneered the regulation of vehicle air pollutant
emissions and fuel economy in the 1960s and 1970s, and Canada has
largely followed suit. Auto and parts makers have a long history of
tightly integrated operations across the border. Regulators over the
past half century have pushed manufacturers to design and build
more-efficient cars and trucks and promote renewable and low-
carbon fuels. ICCT staff engage with federal, state, provincial, and
local governments to shape practical and cost-effective policies for
clean vehicles and fuels and to defend and extend the public policy
achievements of past decades.

In 2022, ICCT research focusing on North America included studies


on electric vehicle costs and benefits, charging infrastructure, and
policies to support the transition to zero-emission cars and trucks.

20 ANNUAL REPORT 2022


BENEFITS OF THE 2020 MULTI-STATE
MEDIUM- AND HEAVY-DUTY ZERO-EMISSION
VEHICLE MEMORANDUM OF UNDERSTANDING
A coalition of states and the District of Columbia signed a Memorandum of
Understanding (MOU), sharing a goal of achieving at least 30% medium- and heavy-
duty (M/HD) zero-emission vehicle sales by 2030 and 100% sales no later than 2050.
ICCT researchers undertook a study to estimate the benefits of achieving the MOU
sales targets in select states by following regulatory precedents set in California. They
found that adoption of California’s Advanced Clean Trucks rule in these states would
lead to a decline of well-to-wheel CO2 emissions 12% below 2020 levels. Achieving
the 100% zero-emission medium- and heavy-duty sales goal by 2050 would deliver
well-to-wheel CO2 emissions that are 38% below 2020 levels by 2040. Emissions would
further decline to 66% below 2020 levels by 2050, avoiding a cumulative 646 million
metric tons of CO2 emissions from 2020 to 2050.

Figure: Comparison of medium- and heavy-duty vehicle fuel lifecycle CO2 emissions across
scenarios. Data labels show the percent change compared to 2020.

140
-8%
Million metric tons CO2 per year

-17%
120
12%
-23%
100
-38%
-43%
80
-44%
-50%
60
Scenario -66%
40 Reference -72%
ZEV 2050 - EIA reference -77%
ZEV 2050 - Net zero -85%
20 ZEV 2040 - EIA reference
ZEV 2040 - Net zero
0
2020 2025 2030 2035 2040 2045 2050
Does not include California

(Source: Benefits of the 2020 Multi-State Medium- and Heavy-Duty Zero-Emission Vehicle Memorandum of
Understanding, https://theicct.org/publication/md-hd-mou-benefits-apr22/)

PUBLICATIONS OF NOTE
Assessment of light-duty electric vehicle costs and consumer benefits in the United States in the
2022–2035 time frame (white paper)
https://theicct.org/publication/ev-cost-benefits-2035-oct22/

Canada’s path to 100% zero-emission light-duty vehicle sales: Regulatory options and
greenhouse gas impacts (working paper)
https://theicct.org/publication/can-zev-reg-options-jun22/

Opportunities and risks for a national low-carbon fuel standard (white paper)
https://theicct.org/publication/low-carbon-fuels-us-mar22/

Adapting U.S. heavy-duty vehicle emission standards to support a zero-emission commercial


truck and bus fleet (briefing)
https://theicct.org/publication/us-hvs-standards-ze-fleet-feb22/

21 ANNUAL REPORT 2022


Figure: States with zero-emission vehicle and clean car standards, February 2022.

U.S. states with ZEV and clean car standards

Maine
Washington Minnesota
Vermont
Massachusetts
New York Rhode Island
Oregon
Connecticut
Pennsylvania
New Jersey
Delaware
Nevada District of Columbia
Maryland
California Colorado Virginia

Clean car states


States adopting California’s clean car standards

ZEV and clean car states


States with zero-emission vehicle standards

To meet clean air and pollution mitigation obligations, states are forging ahead on zero-emission
vehicle (ZEV) standards and clean car standards. Seventeen states and the District of Columbia
have adopted the California Low-Emission Vehicle regulations, fifteen of which have also adopted
the California Zero-Emission Vehicle regulation. These standards go beyond those at the federal
level and are the most stringent emissions standards and zero-emission vehicle sales requirements
for light-duty vehicles in the United States.

(Source: https://theicct.org/infographic-us-zev-and-clean-car-states-feb22/)

22 ANNUAL REPORT 2022


Figure: U.S. electric vehicle market metric volumes and trade revenue, three scenarios, 2030

-$30 billion +$67 billion

EV Sales: 8,700,000
2030
Accelerated sales EV imports: 870,000 EV exports: 1,900,000
with low imports
EV Production: 9,700,000

-$38 billion +$38 billion

2030 EV Sales: 5,500,000


Moderate sales EV imports: 1,100,000 EV exports: 1,100,000
with moderate imports

EV Production: 5,500,000

-$33 billion +$19 billion


EV Sales: 3,200,000
2030
Incremental sales EV imports: 970,000 EV exports: 570,000
with high imports
EV Production: 2,800,000

(Source: Power play: Unlocking the potential for U.S. automotive trade with electric vehicles, https://theicct.org/publication/us-can-evs-power-play-unlock-
potential-of-auto-trade-with-elec-vehicles-jun22/)

23 ANNUAL REPORT 2022


GLOBAL
While much of ICCT’s work is focused on a regional level, some
sectors—specifically aviation and marine—work across borders and
require international collaboration to address greenhouse gas and
pollutant emissions. ICCT researchers analyze the current state
of emissions from aviation and marine and investigate the impact
that new technologies or strategies could have on these sectors. In
addition, researchers work with country and international governing
regulatory bodies to help set policies and international standards the
aviation and marine sectors.

In 2022, ICCT researchers undertook studies on supersonic aircraft,


the potential of replacing fossil fuels with hydrogen to power
bulk carriers, and the impact of updating International Maritime
Organization regulations to include all climate pollutants.

24 ANNUAL REPORT 2022


ALIGNING AVIATION WITH THE PARIS
AGREEMENT
Airlines and governments have committed to achieving net-zero emissions from
aviation by mid-century. An ICCT report assessed the extent to which measures can
reduce cumulative CO2 emissions from global aviation to be in line with targets outlined
in the Paris Climate Agreement to keep global warming under 1.5°C, 1.75°C, and 2°C.
The study found that widespread investments in zero-carbon aircraft and fuels would
cut aviation CO2 emissions by more than 90% below 2019 levels in 2050, which is
consistent with 1.75ºC pathway under which aviation doesn’t increase its share of a
global carbon budget. Sustainable aviation fuels accounted for the largest share of
CO2 reduction potential, varying between 59% and 64% across the scenarios studied.
Improvements in aircraft technical and operational efficiency could contribute an
additional one-third of CO2 mitigation. Zero-emission planes powered by hydrogen
could account for up to 5% of emission reductions in 2050.

Figure: Global aviation CO2 emissions by scenario and traffic forecast, 2020–2050

(a) Annual

Baseline
Action
2500
Transformation
Breakthrough
Annual CO2 emissions (Mt)

2000

1500

1000

500

0
2020 2025 2030 2035 2040 2045 2050

(Source: Vision 2050: Aligning aviation with the Paris Agreement,


(b) Cumulative
https://theicct.org/publication/global-aviation-vision-2050-align-aviation-paris-jun22/)

Baseline
Action
50 Transformation
Cumulative CO2 emissions 2020–2050 (Gt)

Breakthrough
PUBLICATIONS OF NOTE:
How updating
40 IMO regulations can promote lower greenhouse gas emissions from ships (working paper)
https://theicct.org/publication/marine-imo-eedi-oct22/

Performance analysis of regional electric aircraft (white paper) 2.0


Temperature rise (˚C)

https://theicct.org/publication/global-aviation-performance-analysis-regional-electric-aircraft-jul22/
30 1.9
Environmental limits on supersonic aircraft in 2035 (working paper)
1.8
https://theicct.org/publication/aviation-global-supersonic-safs-feb22/
20 1.7
Decarbonizing bulk carriers with hydrogen fuel cells and wind-assisted propulsion:
A modeled case study analysis (white paper) 1.6
https://theicct.org/publication/hydrogen-and-propulsion-ships-jan22/
25 ANNUAL REPORT 2022 1.5
10
Figure: Summary of attainable routes for a 7,570 dwt bulk carrier using LH2 fuel cells and rotor sails

5A 5B 5C
5B 5C
Attainable by Attainable by LH2 + rotors
LH2 alone + cargo replacement Kjopsvik

Akureyri 6A (northbound) &


Iceland 6B (southbound)
2.4% 2.4%
Akranes
Attainable by LH2 + rotors Sweden
Trondheim Cargo Cargo
replacement replacement

5A
Attainable by LH2 + Norway
rotors + cargo
replacement Brevik
6A 6B

0 200 400 600


Nautical miles

(Source: Decarbonizing bulk carriers with hydrogen fuel cells and wind-assisted propulsion: A modeled case study analysis,
https://theicct.org/publication/hydrogen-and-propulsion-ships-jan22/)

Figure: Well-to-wake GHG emissions of electric and fossil-fueled aircraft operations including battery replacement, 2030 and 2050

Jet A production EU electricity generation Regular battery replacement


Jet A usage Renewable electricity Current policies vs
generation Paris Agreement-compatible
US electricity
electricity mix
generation
200
Median stage length = 76 km Median stage length = 210 km
175
Carbon intensity (g CO2e/RPK)

150

125

100

75

50

25

0
2030 2050
(Source: Performance analysis of regional electric aircraft,
https://theicct.org/publication/global-aviation-performance-analysis-regional-electric-aircraft-jul22/)

26 ANNUAL REPORT 2022


INTERNATIONAL
PARTNERSHIPS
The scale of the challenge we face inspires our collaboration with
like-minded organizations. The ICCT acts as an organizer of multiple
organizations, including The Real Urban Emissions (TRUE) Initiative, the
Zero Emission Bus Rapid-deployment Accelerator (ZEBRA), and the
ZEV Transition Council (ZEVTC). In addition, ICCT participates in a host
of other partnerships, including the Global Fuel Economy Initiative, the
G20 Transport Task Group, and the Accelerating to Zero Coalition.

Research undertaken by ICCT on behalf of our international


partnerships include studies of real-world emissions from transport in
Warsaw to assist with the design of the city’s planned low-emission
zone, assessments of the performance and benefits of zero-emission
buses in Santiago, Mexico City, and São Paulo, and a wholistic
assessment of the global ZEV market, including the benefits of recent
policy developments and opportunities and in emerging markets.

27 ANNUAL REPORT 2022


AIR QUALITY AND HEALTH IMPACTS OF
DIESEL TRUCK EMISSIONS IN NEW YORK
CITY AND POLICY IMPLICATIONS
As part of the TRUE Initiative, ICCT researchers examined spatial patterns of air
pollution from diesel trucks in New York City. The analysis found that pre-2007 engine
model year trucks make up 6%–10% of the fleet but contribute 64%–83% of diesel
truck tailpipe PM2.5 emissions. Additionally, the research found that replacing an older,
pre-2010 engine model year truck with a new diesel truck can reduce health impacts
by 81% to 96%. The study also found that people of color living in the city are exposed
to 5% more PM2.5 from diesel trucks than average. Policies such as emissions-based
access restrictions with targets for fully zero-emission operation can be focused on the
environmental justice areas currently experiencing the largest health burdens to reduce
this racial disparity.

Figure: Ambient PM2.5 concentrations attributable to diesel truck tailpipe emissions within New
York City.
µg PM2.5 /m3
0.005 - 0.020
0.021 - 0.035
0.036 - 0.050
0.051 - 0.065
0.066 - 0.080
0.081 - 0.095
0.096 - 0.110
0.111 - 0.125
0.126 - 0.140
0.141 - 0.155
0.156 - 0.179

(Source: Air quality and health impacts of diesel truck emissions in New York City and policy implications,
https://theicct.org/publication/true-diesel-trucks-nyc-apr22/)

PUBLICATIONS OF NOTE:
Decarbonizing road transport by 2050: Zero-emission pathways for passenger vehicles
(ZEVTC publication)
https://theicct.org/publication/decarbonizing-road-transport-by-2050-zero-emission-pathways-
for-passenger-vehicles/

Evaluation of real-world vehicle emissions in Warsaw (TRUE publication)


https://theicct.org/publication/true-warsaw-emissions-apr22/

Costo total de propiedad: Buses eléctricos en el nuevo modelo de negocios del transporte
público de Santiago de Chile (ZEBRA publication)
https://theicct.org/publication/costo-total-de-propiedad-buses-electricos-en-el-nuevo-modelo-
de-negocios-del-transporte-publico-de-santiago-de-chile/

Measurement of real-world motor vehicle emissions in Jakarta (TRUE publication)


https://theicct.org/publication/true-jakarta-remote-sensing-nov22/
28 ANNUAL REPORT 2022
Figure: Median NOX, CO, and HC emissions of gasoline passenger vehicles and taxis produced after 2013 in Jakarta.

Vehicle type PV Taxi


0.6
0.20 3
NOX emissions (g/km)

CO emissions (g/km)

HC emissions (g/km)
0.15 0.4
2

0.10

1 0.2
0.05

0.00 0 0.0
34,064 240 8,981 257 34,064 240 8,981 257 34,064 240 8,981 257
Euro 2 Euro 4 Euro 2 Euro 4 Euro 2 Euro 4

(Source: Measurement of real-world motor vehicle emissions in Jakarta, https://theicct.org/publication/true-jakarta-remote-sensing-nov22/)

Figure: Projected number of public charge points needed for light-duty electric vehicles in 2030 for each ZEV Transition Council member

2,000
Projected number of public charge points

600
Fast chargers
Normal chargers
required in 2030 (thousands)

1,500
400

1,000

200
500

0 0
United European Germany France Italy Canada Japan Netherlands Sweden Denmark
States Union
California India United Spain South Mexico Norway
Kingdom Korea

(Source: Deploying charging infrastructure to support an accelerated transition to zero-emission vehicles,


https://theicct.org/publication/deploying-charging-infrastructure-zevtc-sep22/)

29 ANNUAL REPORT 2022


TRANSATLANTIC
TRANSPORTATION
DECARBONIZATION SUMMIT
A transition to clean transportation for all markets is required to keep
warming below 2 degrees. In major markets such as North America
and Europe, the transition to clean transportation must be the fastest.
In August of 2022, the ICCT and Agora Verkehrswende hosted the first
Transatlantic Transportation Decarbonization Summit with the goal
of bring together transportation leaders from these two continents in
support of an accelerated transition.

The event combined a workshop’s tools with a summit’s influence. By


facilitating deep conversations and relationship building, the Summit
created an environment for sharing best practices and lessons learned.
The invite-only, two-and-a-half-day event included 122 leaders and
key decision makers from supranational, national, and subnational
governments, along with their counterparts from across industry and
non-governmental organizations. By design, the regional focus was
Europe and North America, but invitees came from as far away as
South Africa and Panamá.

30 ANNUAL REPORT 2022


SUPPORTERS
The ICCT produces rigorous, fair, independent research and analysis to inform public
policy and advance progress toward a cleaner global transportation system. We work
under grants and contracts from numerous organizations in the private, public, and
nonprofit sectors. But our work would not be possible without the vital contributions of
a growing core group of funders whose generous support provides the foundation for
all our efforts. Our recent funders include:

Aspen Global Change Institute


Children’s Investment Fund Foundation
ClimateWorks Foundation
European Climate Foundation
European Commission
FIA Foundation
Heising-Simons Foundation
Norwegian Agency for Development Cooperation (NORAD)
P4G
Packard Foundation
Pisces Foundation
Rockefeller Brothers Fund
Skoll Foundation
Umweltbundesamt (Federal Environmental Agency, Germany)
United Nations Environment Programme
The William and Flora Hewlett Foundation

31 ANNUAL REPORT 2022


AUDITED FINANCIALS
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31

CURRENT ASSETS 2022 2021


Cash and cash equivalents $ 9,693,447 $ 9,363,952
Promise to give, net 1,081,748 754,805
Accounts receivable, net 1,297,255 75,358
Unbilled receivables 451,810 672,497
Prepaid expenses 104,899 273,311
Right-of-use asset for finance leases, net 7,112 -
Deposit 37,217 40,436
Property and equipment, net 398,052 507,205
Right-of-use asset for operating leases, net 4,292,860
TOTAL ASSETS $ 17,364,400 $ 11,687,564

LIABILITIES AND NET ASSETS


LIABILITIES:
Accounts payable and accrued expenses $ 1,415,66 $ 1,244,032
Refundable advances 403,962 450,061
Deferred rent - 566,325
Lease liability for finance leases, net 7,112 -
Lease liability for operating leases, net 4,826,629 -
TOTAL LIABILITIES 6,653,369 2,260,418

NET ASSETS (deficit):


Without donor restrictions (555,439) (1,332,167)
With donor restrictions 11,266,470 10,759,313
Total net assets 10,711,031 9,427,146
TOTAL LIABILITIES AND NET ASSETS $ 17,364,400 $ 11, 687,564

CONSOLIDATED STATEMENTS OF ACTIVITIES


Year Ended December 31, 2022
Without Donor With Donor
Restrictions Restrictions Total
Revenue and support:
Grants and contributions $ 2,352,108 $ 17,341,065 $ 19,693,173
Contract income 1,050,293 - 1,050,293
Consulting income 413,289 - 413,289
Interest income, net 54,795 - 54,795
Other income 113,401 - 113,401
Net assets released from restrictions 16,833,908 (16,833,908) -
Total revenue and support 20,817,794 507,157 21,324,951

Expenses:
Program services 16,745,922 - 16,745,922
Supporting services:
Management and general 1,859,079 - 1,859,079
Communications 964,106 - 964,106
Development 471,959 - 471,959
Total expenses 20,041,066 - 20,041,066
Change in assets 776,728 507,157 1,283,885

Net assets (deficit)


Beginning (1,332,167) 10,759,313 9,427,146
Ending $ (555,439) $ 11,266,470 $ 10,711,031

32 ANNUAL REPORT 2022


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33 ANNUAL REPORT 2022

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