Global transportation systems have improved mobility and spurred economic growth, but have also contributed about one-third of all airborne pollutants and greenhouse gases. Governments in the U.S. – at the State level – have strengthened regulations in certain areas (e.g. diesel) and have started to set standards for emissions in new areas (e.g. California’s new regulations on CO2). In Europe, vehicle manufacturers often face a tighter regulatory environment.

In response, vehicle makers are investing in advanced power systems seeking an ultra-low emissions product platform. This is likely to be a long term and significant investment area for the industry. As examples, the major original equipment manufacturers (OEM’s) are in the early stages of commercializing hybrid-electric (e.g., Toyota’s Prius), fuel cell, natural gas powered cars, and clean diesel vehicles, as well as electronics that replace mechanical systems. Emerging technologies and approaches include new lightweight materials and “smart designs” which can reduce vehicle mass and significantly improve fuel efficiency. 

Tightening emissions requirements and scarce resources (especially platinum) are also driving vehicle manufacturers to seek advanced catalytic technologies that can remove a greater share of pollutants from the exhaust of traditional internal combustion engines.

The fuel industry is under similar pressure to contribute to lower emissions. This is leading to significantly rejuvenated investment in clean and alternative fuel technologies, such as biodiesel, ethanol, cellulosic ethanol and bio-butanol – the latter two which have the greatest potential in coming decades.