SUVs drive up global oil demand and CO2 emissions: IEA report

The growing popularity of sports utility vehicles (SUVs) is significantly impacting global oil demand and CO2 emissions. According to a report by the International Energy Agency (IEA), the love for larger cars like SUVs accounted for more than a quarter of the annual global demand growth for oil and 20% of the added energy-related CO2 emissions. This trend underscores the pressing environmental concerns posed by these vehicles and the challenges they create for sustainable transportation.

SUV popularity continues to rise

SUVs, known for being heavier and less fuel-efficient than smaller cars, have seen a dramatic rise in popularity over the past decade. In 2023, SUVs accounted for a record 48% of global car sales, up from 41.4% in 2020 and a mere 20.58% in 2013. This increase highlights a significant shift in consumer preferences towards larger vehicles.

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"If SUVs were a country, they would be the world’s fifth-largest emitter of CO2," the IEA stated, emphasising the substantial environmental footprint of these vehicles. Over 2022 and 2023, global oil consumption directly related to SUVs rose by over 600,000 barrels per day, contributing more than a quarter of the overall annual growth in oil demand.

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Environmental impact of SUVs

The environmental impact of the growing number of SUVs on the roads is profound. With more than 360 million SUVs globally in 2023, combustion-related CO2 emissions from these vehicles reached 1 billion tons. This figure represents an increase of approximately 100 million tons from the previous year. The IEA report indicates that large, heavy passenger vehicles were responsible for over 20% of the growth in global energy-related CO2 emissions last year.

The preference for SUVs extends beyond traditional internal combustion engines to electric vehicles as well. While only about 5% of the SUVs on the road are electric, their share in the segment is increasing. Globally, around 45% of electric cars are SUVs, with this number rising to 55% in advanced economies. However, these larger electric vehicles pose their own set of challenges due to their increased use of critical minerals, as they require larger batteries.

Policy responses to curb SUV use

In response to the environmental impact of SUVs, several countries have implemented measures to discourage their use. One common approach is to increase parking fees for large, energy-intensive cars. For instance, Paris tripled the cost of parking fees for SUVs compared to smaller cars earlier this year. Other cities, such as Lyon in France and Tübingen in Germany, have also begun incorporating vehicle weight into parking fees as part of their strategies to reduce pollution, protect the climate, and free up pedestrian space.

These measures aim to make it less convenient and more expensive to own and operate large vehicles in urban areas, thereby encouraging the use of smaller, more fuel-efficient cars and alternative modes of transportation.

The road ahead

The IEA report highlights the need for more robust policies and consumer awareness to address the environmental impact of SUVs. As the world grapples with the effects of climate change, reducing the carbon footprint of the transportation sector is crucial. This includes not only promoting the adoption of electric vehicles but also encouraging a shift away from larger, less efficient vehicles.

While electric SUVs offer a cleaner alternative to their gasoline-powered counterparts, their production and operation still require significant resources. Therefore, a holistic approach is needed to address the challenges posed by SUVs, including improving fuel efficiency, advancing battery technology, and enhancing public transportation infrastructure.

The surge in SUV popularity is a significant driver of increased oil demand and CO2 emissions. Addressing this issue requires a combination of regulatory measures, technological advancements, and shifts in consumer behaviour. As cities and countries implement strategies to curb the use of large vehicles, the transportation sector can move towards a more sustainable and environmentally friendly future.