Policy update

Early adoption of China 5/V vehicle emission standards in Guangdong

On February 15, 2015, the Guangdong Environmental Protection Department (EPD) announced a province-wide plan for early adoption of China 5/V (Euro 5/V-equivalent) tailpipe emission standards. Guangdong province becomes the third region in China (after Beijing and Shanghai) to move from China 4/IV to China 5/V standards on an advanced schedule, though with a 9- to 12-month postponed timeline announced on March 27, 2015. The plan includes both light-duty vehicle (GB 18352.5—2013) and heavy-duty vehicle (GB 17691—2005) standards.

The China 5 LDV emission standards must be in place in the Pearl River Delta region no later than December 31, 2015, and in the rest of the province no later than June 30, 2016. China V HDV emission standards will phase in with the same schedule for public heavy-duty vehicle fleets (buses, sanitation and postal trucks, and other civil vehicle fleets). The timeline closely follows Beijing’s and Shanghai’s schedules. This is about 1.5 to 2 years earlier than the national timeline.

By taking full advantage of the previously announced timeline for ultra-low-sulfur fuel in Guangdong province, early adoption of China 5/V can yield significant emission reductions for all pollutants, including both NOX and PM2.5. A 2014 ICCT cost-benefit analysis found that the NOX reduction could total over 40 thousand metric tons after full implementation, and premature mortality caused by human exposure to ambient PM2.5 could decline by 20%. Because a significant proportion of the benefits would come from the HDV segment, it is important that the timeline for full HDV adoption be established as soon as possible.

The overall value of benefits, including improvements in public health from reduced air-pollution exposure and lower climate-pollutant emissions, will outweigh the total costs of the standards by 1.4 billion RMB in 2015 alone.