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03/29/2021

Fuels Institute Explores Impact of Bans on Gas-Powered Vehicles

Its new paper serves as a tool to prompt discussion and encourage policymakers to carefully consider potential implications.
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ALEXANDRIA, Va. — As calls for emissions reductions spread and the number of policies banning future sales of internal combustion engines (ICE) grow, there is the potential for broad implications for the transportation market.

The Fuels Institute has released a new paper, "Policy Considerations: Proposals to Ban the Sale of Combustion Engine Vehicles," as a tool to prompt discussion and encourage policymakers to carefully consider potential implications of such policies in order to mitigate negative and amplify positive outcomes.

"The best policies are those that have considered the possible challenges to success that might arise," said John Eichberger, executive director of the Fuels Institute. "This paper was borne out of our desire to better understand what elements of the market could be affected by these policies in order to help policymakers better prepare for their implementation."

More than a dozen countries have announced their intent to ban the sale of new ICE-equipped vehicles, as have the state of California and Canadian provinces British Columbia and Quebec. These countries represent nearly half of the global light duty vehicle market.

Additionally, in October 2020, two federal lawmakers introduced legislation to end U.S. sales of new gas-powered vehicles in 15 years, as Convenience Store News previously reported.

The Fuels Institute stated that it is clear momentum for these types of policies is growing, and it wants to ensure they are comprehensive and take into careful consideration various factors that will inevitably be affected with their implementation.

The Fuels Institute worked with a diverse set of interested stakeholders to identify several elements worthy of consideration. The paper presents them in three main categories: environmental impact, market readiness, and consumer and stakeholder impact. By carefully analyzing the issues and questions posed in the report, policymakers will be poised to better understand the challenges ICE bans pose to the industry and how to craft a policy that minimizes barriers to the policy's success, according to the organization.

"The Fuels Institute does not take a position on whether such policies should be implemented; we simply want to encourage policymakers to carefully think through the implications of such a significant change to the market," Eichberger said. "Only by considering what might transpire and where challenges may exist can leaders develop effective plans to achieve their overall objectives. We hope this paper serves as a resource that supports the development of thoughtful improvements to the transportation sector."

The free paper is available for download here.