World Bank Report: Policies to Improve the Environmental Performance of Road Vehicles in the Western Balkans

The report “Policies to Improve the Environmental Performance of Road Vehicles in the Western Balkans. Managing road vehicle emissions and embracing e-mobility” which is a product of the staff of The World Bank with external contributions, discusses policies to improve the environmental performance of road vehicles in the Western Balkans region. It highlights the growing energy consumption and emissions from the transport sector, particularly road transport, which accounts for 99% of the sector’s domestic emissions in the region. Challenges also include the oil dependency as well as air pollution which contibutes to premature mortaility.

The report outlines policies that the economies can leverage: (i) instruments to improve the environmental performance of internal combustion engine vehicles (ICEVs), impacting both the legacy stock and new registrations, and (ii) instruments to prepare the region for a transition towards electric mobility (e-mobility). Key policy priorities include a combination of regulatory requirements, vehicle and fuel taxation reforms, and policies supporting e-mobility, such as regulations on energy efficiency/CO2 emissions per km and emissions of local pollutants, differentiated vehicle taxation based on environmental performance, and increased fossil fuel taxation.

The report emphasises the importance of aligning these policies with the region’s economic and social development goals, ensuring they are effective, economically viable, equitable, and able to mobilise private investment.

The note emphasises the following instruments:

• Introduce regulations on energy efficiency/carbon dioxide (CO2) emissions per kilometer (km) and stricter regulations on emissions of local pollutants for secondhand vehicle imports.
• Introduce fleet level electric vehicle (EV) requirements and other measures for the early transition for highly utilized vehicles
• Implement differentiated vehicle taxation based on environmental performance where this is not already the case
• Increase fossil fuel taxation, alongside redistribution measures to respond to equity-related challenges.
• Improve governance and enforcement of roadworthiness procedures and technical inspections
• Develop a clear policy framework for EV charging infrastructure
• Introduce regulations on energy efficiency/CO2 emissions per km and stricter regulations on emissions of local pollutants for new vehicles

The report also highlights the crucial role of the European Union in supporting the economies through policy alignment, access to information, and facilitating industrial development opportunities in sustainable raw materials and electric battery projects.

For more information about the report, please refer to the source page: https://documents1.worldbank.org/curated/en/099060624023516195/pdf/P50218114f0b1701d1b4ff14b11be33bf6c.pdf