China Energy Outlook 2020 - Flipbook - Page 96
In 2018, the total NEV stock in China totaled 2.3 million and accounted for half of the global
electric car stock (IEA, 2019d). In 2019, NEVs sales are projected to reach 1.8 million (CCID,
2019).
Figure 2-4. National New Energy Vehicle Related Policies from Late 2016 to Early 2019
Source: compiled by authors
Dual Credits Program
Passenger car companies that produce or import passenger vehicles must meet dual targets
for corporate average fuel economy and for NEV production or imports.
The “Dual Credits” system for reducing fuel consumption of conventional vehicles while
simultaneously increasing NEV sales was formally adopted in September 2017 and
implemented in 2018 to reduce transport fossil fuel consumption while increasing NEVs (MIIT,
2017d). The program requires passenger car companies that produce or import more than
30,000 vehicles to meet dual targets for corporate average fuel economy and for NEV
production or imports. Surplus NEV credits can be sold, while surplus corporate average fuel
economy credits can be banked for future use or transferred to affiliated companies. In July
2019, MIIT proposed amendments to the program that would increase the required ratio of
NEVs to 14%, 16%, and 18% for the years of 2021, 202,2 and 2023, respectively, up from 10% in
2019 and 12% in 2020 (MIIT, 2019b).
Accelerated Retirement and Phasing Out Internal Combustion Engine Vehicles
New policy efforts are addressing pollution impacts of older internal combustion engine
vehicles, with a national phase-out timetable under development.
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