In a pretty dramatic move to halt air pollution, The New York Times reports on China boldly ceasing the production of car models in China that do not meet fuel economy standards for the country. They stopped over 500 different car models effective January the 1st. This suspension impacted both domestic and foreign automobile ventures, including partnerships with Volkswagen and Benz.
China produced 28 million vehicles in 2016 and also has scores of smaller-scale car factories. While there is some credence that this new policy centralizes and consolidates the car industry, “the measure pointed to a mounting willingness by China to test forceful antipollution policies and assume a leading role in the fight against climate change. The country, which for years prioritized economic growth over environmental protection and now produces more than a quarter of the world’s human-caused greenhouse gases, has emerged as an unlikely bastion of climate action after President Trump’s rejection of the Paris climate agreement.”
China is also providing incentives for power companies to operate more cleanly by creating the largest carbon market. While the Chinese government currently has bonuses to produce “clean energy” vehicles, these will be replaced by quotas for clean energy vehicles in 2020. When you have the biggest consumer demand for cars in the world, global automobile manufacturers respond in a relatively positive way. As Michelle Krebs an AutoTrader Group analyst observed ” “The simple fact that China is the biggest market means automakers will be accommodating“. China is now leading the way in auto emission policy, unlike the United States which is looking at relaxing tailpipe emission standards.
This YouTube video from CGTN from January 2017 shows that at that time only one in fifty cars in China were electric, and unfortunately portrays electric vehicles as “cheaper than taking transit”. It does illustrate how remarkable China’s new policy is in demanding the adaptation from automakers to clean energy vehicles in a relatively short time frame.