China introduces New Energy Vehicle quota from 2019 onwards

After years of media muttering and delays of the plan, China finally introduced a quota for new energy vehicles (covering all zero- and low emission cars like electric vehicles and hydrogen cars, but also hybrids). From 2019 onwards the so-called cap-and-trade policy obliges  automakers to obtain a new-energy vehicle score - which is linked to the production of various types of zero- and low-emission vehicles - of at least 10 percent, rising to 12 percent in 2020, according to the Chinese Ministry of Industry and Information Technology. The initial plan of the Chinese government was to roll-out a quota system by 2018 already, but car manufacturers from around the globe succeeded in lobbying the government to delay the plan for one year.

China is going to become the first major country in the world with a nationwide quota for new energy vehicles from 2019 onwards. The Chinese Ministry of Industry and Information Technology recently unveiled plans on the design and final timetable for the quota.

Car manufacturers or importers that trade more than 30.000 vehicles annually in China must comply with the 10 per cent quota. However, instead of producing 10 per cent new energy vehicles, manufacturers and importers also have the alternative to buy credits from other manufacturers/importers to obtain the necessary new energy vehicle score.

Initially, the government planned to introduce an 8 per cent quota by 2018 already, but the industry said the quota was impossible to achieve and lobbied the Chinese government to postpone the introduction of the new regime. They also complained that  foreign carmakers are currently excluded from getting full subsidies for electric vehicles, leaving foreign manufacturers at a disadvantage, according to

In Europe the battle over a new energy vehicle quota is in full force. In August 2018 the German candidate for chancellor Martin Schulz, how is also the former chairman of the European parliament pleaded for such a quota. After his crushing defeat in Germany`s general elections, however, the voices calling for a binding EU quota are becoming less powerful. The Juncker administration is publicly opposes a binding new energy vehicles quota in Europe, but media outlets reported that the Commission secretly contemplates the introduction of such a quota by 2030.

More information can be obtained from Bloomberg News and  USA Today.


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