As Climate Change Conference negotiations get underway in Paris, the impact on the lubricants industry in relation to emissions control and air quality improvement will only emerge long after the meetings are over.
The Kyoto agreement to control emissions, which came into force in 2005 but was never fully ratified by the US, triggered an acceleration of the lubricants specifications as OEMs sought to improve their performance on CO2 and other emissions. But there is still much to be done.
Shrinking polar ice-caps are incontrovertible evidence of change. While the cause may still be subject to debate, the state of air quality in recent weeks in both Beijing (PM2.5>300) and Delhi (>400) remains appalling - the official classification is anything from "very unhealthy" to "hazardous” - despite the efforts of national goverments to change the situation.
The pressure from indigenous populations to reduce health risks becomes ever more urgent. But so does the need to lift some of the most populous nations out of poverty. India is heavily coal dependent and for every European and Western reduction in coal power, India will be implementing more. CO2 emissions will not change, the source is merely relocated. Is it reasonable for developing economies to be constrained due to the developed world’s earlier follies?
Against this background the smog of the VW's reported cheating on both European and US controls continues to spread with to Bosch now under investigation in the US and VW sales down sharply in November.
The impact of health, economic growth and manufacturing are converging in the automotive sector and lubricants will continue to be a key factor in helping clean our air. This is certainly good news for the additive companies and those who are harnessing bio-technology to the energy and lubricants sectors. It is also focusing the attention of other automotive consumable manufacturers.
The challenge for the industry remains: how to do more with less and in a more environmentally-friendly manner. That means having the most efficient product range, the smallest number of SKUs and the best distribution for your chosen markets. All areas that OATS that can support with the new tools we are developing for lubricants producers and OEMs alike.
Whatever the future holds, another Festive Season and New Year is upon us. So, on behalf of all the OATS UK team and Diana Shen in China, may I take this opportunity to wish you health and happiness throughout the festivities and a prosperous, successful and pollution-free 2016.
As always, for global information, you can contact OATS by e-mail or follow our updates on social media via Twitter, Facebook, LinkedIn and Google+.
Sebastian Crawshaw
Chairman
with a New Year