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China plans to phase out fossil fuel cars

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Earlier this year, we had reported that Britain, France and Germany had plans to ban fossil fuel-powered cars in the coming years. Now, media reports indicate that China is also working on a timeline to switch over to electric vehicles.

Currently, China is the largest market for automobiles in the world. The Chinese government is reported to be working with regulators over the timeline for discontinuing production and sales of vehicles running on fossil fuels. Many Chinese cities have been affected by increasing pollution levels and smog. A move to electric cars is expected to help curb the impact. The country has already committed to a 2030 deadline for capping carbon emissions and restricting air pollution.

Local companies that make electric vehicles enjoy subsidies from the government. The state also plans to introduce a credit system for automakers. They must either earn enough credits or buy them from other companies under a new cap-and-trade programme for fuel economy and emissions. While a slew of new electric car launches from companies like Honda and Nissan are expected, Tesla has been reported to be in talks with the Chinese government for local production of electric vehicles as well.

China is also planning to introduce a credit system for automakers. They must either earn enough credits or buy them from other companies under a new cap-and-trade programme for fuel economy and emissions. This system is being introduced with the aim to cut down oil imports.

Source - Bloomberg

 
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