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 fine-tuning already functioning systems. But governments and aid agencies may find it less attractive to fund such measures than to invest in new, large-scale energy supply hardware that is perceived as a more tangible symbol of progress.

98. The manufacture, import, or sale of equipment conforming to mandatory minimal energy consumption or efficiency standard is one of the most powerful and effective tools in promoting energy efficiency and producing predictable savings. International cooperation may be required when such equipment is traded from nation to nation. Countries and appropriate regional organizations should introduce and extend increasingly strict efficiency standards for equipment and mandatory labelling of appliances.

99. Many energy efficiency measures cost nothing to implement. But where investments are needed, they are frequently a barrier to poor households and small-scale consumers, even when pay-back times are short. In these latter cases, special small loan or hire-purchase arrangements are helpful. Where investment costs are not insurmountable, there are any possible mechanisms for reducing or spreading the initial investment, such as loans with favourable repayment periods and 'invisible' measures such as loans repaid by topping up the new, reduced energy bills to the pre-conservation levels.

100. Transport has a particularly important place in national energy and development planning. It is a major consumer of oil, accounting for 50-60 per cent of total petroleum use in most developing countries. It is often a major source of local air pollution and regional acidification of the environment in industrial and developing countries. Vehicle markets will grow much more rapidly in developing countries, adding greatly to urban air pollution, which in many cities already exceeds international norms. Unless strong action is taken, air pollution could become a major factor limiting industrial development in many Third World cities.

101. In the absence of higher fuel prices, mandatory tandards providing for a steady increase in fuel economy may be necessary. Either way, the potential for substantial future gains in fuel economy is enormous. If momentum can be maintained, the current average fuel consumption of approximately 10 litres per 100 kilometres in the fleet of vehicles in use in industrial countries could be cut in half by the turn of the century.

102. A key issue is how developing countries can rapidly improve the fuel economy of their vehicles when these are, on average, used for twice as long as those in industrial countries, cutting rates of renewal and improvement in half. Licensing and import agreements should be reviewed to ensure access to the best available fuel efficient designs and production processes. Another important fuel-saving strategy especially in the growing cities of developing countries is the organizinq of carefully planned public transport systems. /…