In March 2009, the United Nations Environment Program (UNEP) in collaboration with the International Energy Agency (IEA), the International Transport Forum (ITF) and the Federation Internationale de Automobile (FIA) foundation launched the Global Fuel Economy Initiative (GFEI). The aim of the project was to reduce localized air pollution, greenhouse gas emissions and global national fuel bills through the promotion of cleaner fuel efficient vehicles.
Pilot projects were proposed to cover Chile, Ethiopia, Indonesia and Kenya. The task entailed updating the vehicle inventories of the respective countries, with the aim of establishing the country’s average fuel economy (baseline setting) and carrying out a cost benefit analysis of the different policy options that promote fuel efficient vehicles. Such analysis should inform the respective governments on the right combination of technologies and policy instruments needed to meet the National emission standards, energy security and fuel efficient goals.
In Kenya, UNEP collaborated with Energy Regulatory Commission (ERC) to undertake the pilot project. The ERC then commissioned the University of Nairobi Enterprises and Services Ltd (UNES) to carry out the study. During the study, the vehicle inventory data was analyzed to obtain the current fuel consumption and CO2 emission levels. Subsequently, the survey of existing regulations in the transport sector, determination of health implications and Cost Benefit Analysis (CBA) were carried out.