China Set to Unveil Cap-And-Trade Auto Emission, Mileage Rules

China will soon unveil a mandatory cap-and-trade credit program for electric cars, starting the countdown for carmakers to be in compliance with stricter rules on emissions and fuel economy, according to the country’s state-backed auto association.

The policy may be announced as early as this week, Shi Jianhua, deputy secretary general of the China Association of Automobile Manufacturers, said at a briefing in Beijing Monday. Shi didn’t provide a specific date.

Under draft rules released in September for public consultation, companies will be required to obtain a minimum new-energy vehicle credit score next year, derived from different weightings assigned to various types of zero- and low-emission vehicles. Companies that fail to meet the requirement face fines or have to buy credits from those that exceeded the minimum.

China is considering dialing back or delaying the proposed measures after industry feedback that the targets are overly ambitious. The government will implement the cap-and-trade policy in 2019 instead of next year, Caixin reported last month, citing people close to the Ministry of Industry and Information Technology.

Xin Guobin, a vice minister at the ministry, said Sept. 9 that China will set a deadline for automakers to end sales of fossil-fuel-powered vehicles, becoming the biggest market do so. The government is working with other regulators on a timetable to end production and sales.

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