Shanghai’s local government, in an announcement on December 28th, joined Beijing in the mega-city’s push to cut down on transportation emissions. While China’s national government considers the extension of the country’s existing national electric vehicle subsidy policy for 2013, two of the country’s largest cities have taken steps towards playing a more active role in the future incentive and subsidy plans.

These recent developments signify a developing trend among city level governments in China towards sharing the task of increasing the number of EVs on China’s streets. Shanghai’s incentives are set to include a 30,000 yuan (€3,634) subsidy for every plug-in hybrid passenger vehicle and 40,000 yuan (€4,856) for each fully electric car. Furthermore, the city will allocate a total of 20,000 license plates for 2013 to be awarded to purchasers of new green vehicles, adding savings of a further 70,000 yuan (€8,484).

In addition to the new-energy vehicle subsidy plans announced earlier, the city government of Beijing is also seeking to reduce traffic emissions by encouraging the city’s motorists to exchange old, gas-fueled cars for more sustainable vehicles. The city aims to achieve this goal by increasing the amount of a rebate offered to owners for scrapping their older cars from €545 to nearly €800 and also increasing the age-range for eligible vehicles from 6-8 years to 6-10 years. This measure is a necessary and significanct addition to the incentive policy as vehicles older than 8 years account for over 50% of the city’s traffic emissions, although they make up a mere 22% of all vehicles in the city.

These policies are intended to serve as a continuation of the national policy, which expired on the 31st of December, while the national government considers the future of its new-energy policy. However, Shanghai officials have pledged to continue these policies in any event, aiming at a “national plus local” subsidy policy for the future.

Source: Global Times article

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