Climate and Decarbonization

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China’s path to carbon peaking and carbon neutrality goals under the new development philosophy becomes a major strategic decision taken by the Central Government at its core in light of both domestic and international imperatives. 

European Union Decarbonization Strategy: Starting from European Green Deal

With the European Green Deal, the EU aims to become the world's first climate-neutral continent, by ensuring:

  • No net emissions of greenhouse gases by 2050
  • Economic growth decoupled from resource use
  • No person and no place left behind

The transformation of the automotive industry is determined by a variety of measures. The EU decides on important framework conditions for the German automotive industry. Taking the “Fit for 55” package, the interim goal on the way to climate neutrality for example, the proposed revision of the CO₂ emission standards foresee a tightening of the CO₂ fleet targets. By 2030, CO₂ emissions from passenger cars are to be reduced by 55% instead of 37.5%, and the reduction target for light commercial vehicles is to be raised from 31% to 50%. In 2035, CO₂ emissions from passenger cars and light commercial vehicles are to be zero grams, which would effectively ban the internal combustion engine.

Chinese Decarbonization Strategy: 30/60 to Move Toward Carbon Peaking, Carbon Neutrality

At the 75th United Nations General Assembly on September 22, 2020, President Xi stated China's commitment to:

  • Peak carbon dioxide (CO₂) emissions by 2030
  • Reach carbon neutrality by 2060

Similar as “European Green Deal” and “Fit-for-55”, in China it's anticipated a whole package of policies and regulations as well, to address this climate issue from the top-level strategy down to industrial-level plans, named as “1+N” system.

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In the “Action Plan”, the refined targets include by 2025, it’s to reach a 20% share of non-fossil energy consumption, with CO₂ emissions per unit of GDP decreasing by 18% compared to 2020; and by 2030, non-fossil energy share will reach about 25% and CO₂ emissions per unit of GDP will drop by more than 65% compared to 2005, achieving carbon peak. For the transportation sector, it’s also specified that by 2030, the proportion of new energy and clean energy-powered vehicles will reach about 40% that year.

Automotive Sector Approaches: On the Path to Climate-Neutral Mobility

Following the “1”, the top framework, it's believed that the “N”, the action plans from different ministries and industries will be also proposed. There will be for sure deeply influence on the automobile industry and thus VDA China will closely monitor them.

VDA China has been committed to advocating on:

  • Promote international harmonization of climate policies and instruments.
  • Integrate the automotive sector into the China ETS.
  • Intensify Sino-German cooperation on decarbonization with a focus on the automotive industry.