China Phase 4 passenger car fuel consumption standard proposal

On January 21, 2014, the Chinese Ministry of Industry and Information Technology (MIIT) released a proposed fuel consumption standard for passenger cars. The so-called Phase 4 standard, which would regulate domestically manufactured and imported new passenger cars sold in China from 2016 to 2020, echoes China’s Energy-Saving and New Energy Vehicle Industry Development Strategic Plan of 2012–2020. It projects an overall fleet-average fuel consumption of 5L/100km for new passenger cars in 2020, as measured over the New European Driving Cycle (NEDC), if all manufacturers meet the weight-based corporate-average targets defined in the regulation. Based on ICCT’s internal estimates, the proposed standard would reduce oil consumption by approximately 348 million barrels and reduce tank-to-wheel carbon dioxide emissions by about 149 million metric tons in 2030.

This policy update summarizes the major aspects and provisions of the proposed regulation and compares it to the global context.