China Light-duty Vehicle Fuel Economy Label Standard Update（September 2017 Clean Transportation Program Brief）
China's new fuel consumption standard label (released last May) explained in a new iCET policy brief. In a nutshell: (i) the new label standard includes not only ICE fuel consumption information (namely, GB 22757.1-2017), but also NEVs electricity consumption (namely, GB 22757.2-2017); (ii) The new label is highlighting urban diving cycle; (iii) The new label illustrates model FC performance in relation to the annual average FC and the limit FC of the models' weight class.
Corporate Average Fuel Consumption and New Energy Vehicles Credits Joint Management Method Draft（August 2016 / Clean Transportation Program）
In August 21st, the Ministry of Industry and Information Technology (MIIT) released its plan for CAFC credits and NEV credits management, under the CAFC standard system. This draft was long awaited for, at least since China has announced its intention to consider the ZEV-‐‑credits regulation adaptation to China as part of the US-‐‑China Climate Change Dialogue in September 2015. The CAFC credits mechanism will enter into effect after the release of the final regulation; the NEV credits mechanism is planned to be implemented as of 2018. This short brief stresses the highlights of the draft.
ICE vehicle energy efficiency improvements should be highlighted along with NEV in pursuit of CAFC target
According to the MIIT, 2016 Corporate Average Fuel Consumption (CAFC) memo released on April 2017 , China’s market reached an average of 6.56L/100km, comprised of domestic manufacturers with 6.51L/100km and imported with an average CAFC of 7.89L/100km. In comparison to last year’s average of 7.04L/100km, this is a drop of 7% in corporate average fuel efficiency. Also against the 2016 target of 6.7L/100km, China’s corporate auto players performed well. However, a more thorough investigation reveals issues surrounding the actual energy efficient technology improvements of China’s huge ICE vehicle fleet. This brief introduces the highlights of our coming 2017 CAFC analysis.
Corporate Average Fuel Consumption and New Energy Vehicles Credits Joint Management Method Draft II (for public consultation)
This second draft regulation proposed by the Ministry of Industry and Information Technology (MIIT) and released by the Law Department of the State Council takes into account comments provided since its September 2016 release, including its WTO consultation. Additional comments will be submitted on June 27 and incorporated into a subsequent draft. We've prepared a quick review of the new draft, and gathered some comments we will submit to MIIT soon. Welcome your thoughts and suggestions!
Corporate Average Fuel Consumption and New Energy Vehicles Credits Joint Management Method Regulation（Sep 2017 / Clean Transportation Program）
On September, the Ministry of Industry and Information Technology (MIIT) released the official regulation of the CAFC and NEV credits joint management system, entering effect in April 2018. This draft was expected and debated for nearly two years, since China has announced its intention to consider the ZEV credits regulation adaptation to China as part of the US-China Climate Change Dialogue in September 2015. This short brief stresses the highlights of the regulation, major changes made to the policy draft, and suggestions for improvement going forward.
New Calculation Methods for 2016-‐‑2020 Electric Vehicles (EVs) Subsidies were Adjusted in December 2016
Pursuant to the national effort to accelerate adoption of New Energy Vehicles (NEV) and favorable tax and license plate exemption policies published periodically since 2014, the Ministry of Finance, National Reform and Development Commission, Ministry of Information Technology and Ministry of Science and Technology published the revised version of the National 2016-2020 Electric Vehicle Range Based Subsidy in December 2016 (previous draft version as released in April 2015). The new subsidy's major highlights and calculations are provided in this useful policy brief.
China Light-duty Vehicle Fuel Economy Label standard and management update（October 2016 / Clean Transportation Program）
China's "Fuel consumption label for light vehicle" (GB 22757), aimed at enhancing consumers' fuel efficiency and fuel cost saving awareness and enforced as of July 2009, underwent revisions led by the Auto Standard Research Institute, operating under China Automotive Technology and Research Center (CATRAC). The new draft standard has recently entered the Standards Administration Council (SAC) final approval process. The new label standard includes not only ICE fuel consumption information, but also NEVs electricity consumption, and emphasised the test-cycle urban FC, as introduced in this policy brief.
New Local Regulations Aimed at Guiding Car-sharing Development（October 2016 / Clean Transportation Program）
On July 28th, 2016, China's Ministry of Transportation (MOT) released the online car network service regulation, meant to enter into implementation on Nov. 1st, 2016. As the implementation date approaches, several cities released additional local online car network service regulations. On October 8th, Beijing, Shanghai, Guangzhou and Shenzhen spontaneously released their draft regulation, aimed at further directing the types of vehicles allowed to be part of the urban online car network service. The new eligibility requirements for both driver and vehicle are outlined in this brief, as well as some of their projected implications.
New Energy Vehicles: New Calculation Methods for Electric Vehicle Subsidies
2016-2020（May 2016 / Clean Transportation Program）
Pursuant to the national effort to accelerate adoption of New Energy Vehicles (NEV) and favorable tax and license plate exemption policies published since 2013, the Ministry of Finance, National Reform and Development Commission, Ministry of Information Technology and Ministry of Science and Technology published the revised version of the National 2016-2020 Electric Vehicle Range Based Subsidy in April 2015. At our readers' request, major modification from the previous subsidy calculation are highlighted in the attached brief.
China could benefit from the development of market-based policies for enhancing New Energy Vehicles commercialization: The California ZEV-Credits option (May 2015 / Clean Transportation Program)
Although China’s EV market started
later than that of California, it enjoys huge market potential:
national strategic plans and financial support, battery production capacity and
advancements, rich lithium-ion resources and rare earth materials, fast
development pace, and existing relations (JVs) with global EV manufacturers. At this stage, China's electric vehicle
policies are mainly demand-side driven (e.g.
purchase subsidies and tax reliefs); however with a lack
of an attractive supply side
“push” and effective infrastructure plans and management, the
EV market may remain a niche market. A long-term and
well enforced ZEV mandate is projected to promote the manufacturing of EVs by
all types of automakers, therefore providing consumers with more EV model
options to meet the varying expectations and needs. Coupled with demand-side
“pull” for the short term, the EV market can finally scale in volumes.