China's aggressive advancement of regulations and sustainability
measures to reduce transportation emissions signifies a decisive
stride toward its environmental goals.
These measures are:
- Increasing stringency of corporate average fuel consumption
policy to decrease vehicle tailpipe emissions. - Introducing a dual-credit framework for new energy vehicles to
raise the adoption of electric vehicles. - Developing a China Circular Economy Plan focused on battery
recycling. - Enforcing interim regulations for carbon emission trading.
- Promoting the issuance of green bonds to support sustainable
finance endeavors.
Mainland China, as the largest global emitter of greenhouse
gases, pledges carbon neutrality by 2060, a commitment critical to
the global effort to limit global warming under the Paris Agreement
goals. This endeavor aims to keep the rise in global temperature
below 2 degrees Celsius, ideally 1.5 degrees. A pivotal aspect of
this effort involves transitioning the transportation sector to
low-carbon alternatives, given its significant contribution to
emissions within China.
China transport sector decarbonization
The transportation sector accounts for over 27% of China's total
greenhouse gas emissions, with projections estimating it will reach
its emission peak between 2025 and 2035 — potentially even
earlier if policies are implemented effectively, possibly before
2030. Through initiatives such as vehicle electrification and
enhancements in fuel efficiency, emissions could decline by 50%-95%
from 2020 levels by 2060. The transport sector also accounts for
20%-50% of PM2.5 emissions in cities and is a major emitter of
nitrogen oxides (NOx) and volatile organic compounds (VOCs)
nationwide.
Concurrently, China is also tightening controls on coal use,
enhancing non-fossil energy sources and halting new overseas coal
projects, reflecting its commitment to environmental
sustainability. Moreover, an investment of over $546 billion in
2022 was made for new energy technologies, indicating its push for
a sustainable shift in energy and industry.
Read S&P Global Mobility's whitepaper for an in-depth
analysis on mainland's China's 5 goals for sustainable
transport.
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