China unveils landmark cap-and-trade system for electric car market

China will introduce a cap-and-trade system for vehicle emissions that will be applied to the country’s largest electric car manufacturers from 2019, forcing firms to chase more efficient models to avoid government fines, Bloomberg reports.

China, the world’s largest electric vehicle market with over 1 million units sold so far in 2018, will introduce a credit scale whereby car makers producing over 30,000 vehicles a year must achieve a 10% score, moving up to 12% in 2020.

Each car is given a credit score in line with its eco-friendliness. The greenest cars will receive six credit points, while the least efficient will receive two. A company with a 30,000 car output, therefore, will have to make up 3,000 credit points according to the system.

To receive a credit, a battery-electric vehicle must be able to travel at least 100 km (62 miles) on one full charge and manage top speeds of 100 km/hour.

According to the International Council on Clean Transportation, this is a milestone policy. “Since China is the world’s largest auto market, this NEV mandate policy will undoubtedly speed up the global transition to a zero-emission fleet, which will be vital for the climate and for urban air quality,” the group said.