Chile’s fuel economy policies accelerating efficiency, supported by GFEI

Chile’s first light-duty (LDV) fuel economy standards, supported by initial research by the Global Fuel Economy Initiative, had a significant impact on the country’s mobility mix and fuel use, according to recent research undertaken by the Centro de Movilidad Sostenible. 

The regulation set minimum vehicle efficiency requirements for importers in the country, with the dual purpose of improving fleet efficiency and accelerating the adoption of zero-emission vehicles, as part of a target to electrify Chile’s whole fleet by 2035. 

This follows a sustained 15-year collaboration between Chile and GFEI. Chile was one of four GFEI pilot countries, with a baseline analysis of the country’s vehicle fuel economy in 2010. As a result, it became the first country in Latin America to adopt fuel economy vehicle labelling in 2013. Subsequent actions have included: a green tax in 2014, targeting carbon emissions; the first Energy Efficiency Law in 2021; and, most recently, the first LDV fuel economy standards in 2023. 

Centro de Movilidad Sostenible’s research shows that in the first 18 months of the policy, the legal framework to regulate vehicle energy efficiency has had a significant positive impact. Key findings include:  

• 88% of importers have improved the efficiency of their fleets since the regulation came into force, with a 7.3% improvement in new vehicles between 2023 and 2025.  
• The market share of battery electric vehicles has quadrupled, rising from 0.59% in 2023 to 2.2% in 2025.  
• The offer of battery electric vehicle models has tripled, while the average price of electric and plug-in hybrid vehicles has fallen by 17%.  

Since the introduction of the new LDV standard, Chile has already saved the equivalent of nearly 3 million litres of petrol, and avoided almost 8,000 tonnes of CO2, with an average 14% reduction in emissions from type-approved vehicles. In comparative terms, this has surpassed the performance achieved by the European Union in its first year of emissions standards (12% in 2019 to 2020). 

Looking forward, standards for medium-duty vehicles are due to be introduced in February 2026 and for heavy-duty vehicles in 2028. 

Sheila Watson, Deputy Director of the FIA Foundation, said: "This research shows the great value of the long partnership which GFEI has had with Chile, building from a baseline to a successful policy framework. It is a fantastic example of how countries can build clean vehicle policy frameworks that support the transition to low-carbon transport, and how GFEI can offer support on this pathway. Most importantly, it shows countries around the world what is achievable."