Part 1 of this article (February 1999 PEJ, p.25) outlined the importance of improving electric motor efficiency as a means of reducing environmental pollution and described how the production cost of higher efficiency motors could be reduced by an holistic approach to motor design. However, environmental pollution will only be reduced significantly if a majority of motor manufacturers take steps to improve the efficiencies of their products. Part 2 of this article describes the various regulatory measures which have been, are being, or may be taken to encourage a market transformation.