IFCO Discussing Overhaul of Clunkers

IFCO Discussing Overhaul of ClunkersIFCO Discussing Overhaul of Clunkers

Two German and Spanish companies are interested in bankrolling a plan to renovate the aging fleet of heavy vehicles in Iran, managing director of the Iranian Fuel Conservation Company said on Tuesday.

Nassrollah Seifi added that IFCO is discussing terms with the unnamed European firms to phase out dilapidated trucks and buses that take a toll on air pollution and energy consumption, Shana reported.

"IFCO is seeking foreign investment … and profitability of our new plans are guaranteed," Seifi said.

The investment in these plans will be returned from the revenues generated through cutting down on energy consumption, "thus there is little risk for foreign investors", he said without elaboration.

According to a report by IFCO published in July 2015, at least 65,000 trucks with at least 35 years of age and 7,000 trucks above 40 years old should be taken off the roads.

The plan also calls for replacing or scrapping 17,000 diesel buses that are still working way past their expiry date.

Diesel is a heavy polluting fuel and the government has embarked on promoting compressed natural gas as a cleaner and more cost-effective alternative for gas guzzlers in recent years.

Producing 15% less carbon dioxide than gasoline, diesel emits four times more nitrogen dioxide pollution and 22 times more particulates—the tiny particles that penetrate the lungs, brain and heart.

The initiative to remove dilapidated vehicles comes as smog in the capital Tehran and some large cities reached choking levels in late 2015 and earlier this year, forcing the government to close down schools and sound the alarm for people with cardiovascular and respiratory conditions.

IFCO is also taking steps to roll out a far-reaching energy conservation and management program to rein in the alarming trend of energy consumption in the Persian Gulf country.

One of the top-priority missions of IFCO is putting a cap on unrestrained use of energy in residential and commercial buildings. Officials say buildings are the most energy-intensive sector in Iran, gobbling up 50% of electricity and 40% of gas consumption.

Iran is an energy superpower, holding roughly 10% of oil reserves and 17% of gas reserves in the world. But data show the country recycles only 28% of its used oil and gas whereas the figure for certain countries stands at 60%.