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Achieving a sustainable automotive sector in Asia and the Pacific: Challenges and opportunities for the reduction of vehicle CO2 emissions

To mitigate the level of vehicle carbon emissions in the next few decades, effective policy and technical options must be considered by the governments and automakers (and their suppliers) within Asia and the Pacific, where rapid development of the automotive sector is expected. Various factors and players, however, are also driving carbon emissions from vehicles in the region, leaving policymakers with complicated coordination tasks. At the same time, the implementation and development of most carbon emission reduction initiatives and technologies will not be cost-effective at economies-of-scale without some form of combination of support mechanisms for the sector’s investments. Such mechanisms should include economic incentives and regulatory regime improvements, possibly covering taxation, subsidies, industrial standards, vehicle regulations and transport infrastructure, while additional interventions may be necessary with regard to soft issues, such as behavioural changes and demand management, working primarily with consumers...

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