China encourages low-emission fuel cars amid push for carbon neutrality

China will boost the purchase of light, small-sized and low-emission conventional passenger vehicles along with promoting new-energy-powered automobiles as the country aims to reach carbon neutrality, said a top central government planning commission.

Based on guidelines for encouraging green consumption issued by the National Development and Reform Commission and other agencies, Beijing will ‘reasonably guide’ consumers to buy petrol vehicles with mentioned factors while also pushing new-energy vehicles. A statement informed that regulators will quicken the construction of chargers for electric vehicles and battery swap stations along with energy storage and hydrogen-refilling facilities. It also added that it will encourage automakers to develop new-energy vehicles (NEVs) that fit the needs of rural residents and people living outside of China’s big metropolises.

China, which is aiming to reach its carbon neutrality by 2060, is taking actions to speed up change started the promotion of alternative-energy-powered vehicles since 2008. These vehicles accounted for 2.6 per cent of all automobiles last year. China Association of Automobile Manufacturers stated that total deliveries of new-energy vehicles stood at 3.51 million units in 2021. The China Passenger Car Association conveyed that it is expecting NEV passenger car sales to increase in 2022 to over 5.5 million from a previous expectation of 4.8 million.

Last year, the world's biggest automobile market's vehicle sales saw an increment of 3.8 per cent to 26.3 million units in 2021, increasing for the first time since 2018. The country is also aiming to ensure that 80 per cent of the vehicles that are replaced or added by bus, taxi and logistic companies are new-energy ones by 2025. It will also promote the trial adoption of hydrogen-fuel-cell automobiles, according to the 14th five-year development plan made by the nation’s transport ministry.

(With inputs from Bloomberg)