Energy conservation and carbon reduction action plan "ignites" the increase in new energy vehicles

Many industries such as photovoltaics, energy storage, hydrogen energy, and new energy vehicles are welcoming benefits! Recently, the State Council issued the "2024-2025 Action Plan for Energy Conservation and Carbon Reduction"(hereinafter referred to as the "Action Plan"). The "Action Plan" proposes to actively develop pumped storage energy and new energy storage; accelerate the construction of large-scale wind power and photovoltaic bases focusing on deserts, Gobi and deserts; develop biomass energy according to local conditions and coordinate the development of hydrogen energy; and gradually cancel new energy vehicle purchase restrictions to promote the electrification of vehicles in the public sector.

The "Action Plan" proposes that in 2024, energy consumption and carbon dioxide emissions per unit of GDP will be reduced by about 2.5% and 3.9% respectively, energy consumption of added value of industrial units above designated size will be reduced by about 3.5%, and the proportion of non-fossil energy consumption will reach About 18.9%, energy conservation and carbon reduction transformation in key areas and industries will produce about 50 million tons of standard coal and about 130 million tons of carbon dioxide emission reduction.

In 2025, the proportion of non-fossil energy consumption will reach about 20%. Energy conservation and carbon reduction transformation in key areas and industries will produce energy conservation of about 50 million tons of standard coal and emission reduction of about 130 million tons of carbon dioxide. We will do our best to complete the "14th Five-Year Plan" Energy conservation and carbon reduction binding indicators.

In terms of key tasks, the "Action Plan" deploys alternative actions to reduce fossil energy consumption, actions to increase non-fossil energy consumption, and 27 tasks in 10 actions including product equipment energy conservation and carbon reduction actions; In terms of management mechanisms, it is proposed to strengthen the responsibilities and evaluation of energy conservation and carbon reduction targets, strictly enforce energy conservation review and environmental impact assessment approval of fixed asset investment projects, strengthen energy conservation and carbon reduction management of key energy-using units, increase energy conservation supervision, and strengthen energy consumption and carbon emissions. Five tasks including statistical accounting; in terms of support and guarantee, six measures including institutional standards, price policies, financial support, scientific and technological guidance, market-oriented mechanisms, and national action have been clarified.

Among them, in terms of energy conservation and carbon reduction in transportation, the "Action Plan" proposes to promote the construction of low-carbon transportation infrastructure. Improve the level of energy electrification at stations, railways, airports, etc., promote the new energy conversion of non-road mobile machinery, and accelerate the matching transformation of domestic transport ships and port power facilities. Encourage the construction of photovoltaic power generation facilities at transportation hub stations and road networks. Strengthen the construction of charging infrastructure. Develop urban rail transit and bus rapid transit systems according to local conditions, and accelerate the continuous network of bus lanes. Improve the urban slow-moving system.

Promote the low-carbon transformation of transportation equipment. Accelerate the elimination of old motor vehicles and improve the access standards for operating vehicle energy consumption limits. Gradually eliminate restrictions on the purchase of new energy vehicles in various places and implement support policies such as facilitating the passage of new energy vehicles. Promote the electrification of vehicles in the public sector, orderly promote new energy medium and heavy trucks, and develop zero-emission freight fleets. Promote the scrapping and renewal of old transport ships and promote the pilot project of electrification renovation of coastal inland ships. By the end of 2025, the carbon dioxide emission intensity in the transportation sector will be reduced by 5% compared with 2020.

Optimize the transportation structure. Promote the construction of port collection and distribution railways, logistics parks and special railway lines for large-scale industrial and mining enterprises, and promote the "rail to rail" and "water to water" transportation of bulk goods and containers over medium and long distances. Accelerate the development of multimodal transport and promote clean transportation in key industries. Implement the priority development strategy of urban public transportation. Accelerate the green, low-carbon, intensive and efficient development of urban freight distribution. By the end of 2025, railway and waterway freight volume will increase by 10% and 12% respectively compared with 2020, and the comprehensive energy consumption per unit of railway conversion turnover will be reduced by 4.5% compared with 2020.

According to forecasts from the International Energy Agency, based on existing policies and automotive industry goals, the global electric vehicle sales share outlook in 2030 has increased to 35%. In China, the European Union and the United States, the average share of electric vehicles in total vehicle sales is expected to rise to about 60% by 2030.

Fatih Birol, Director of the International Energy Agency, said,"Electric vehicles are one of the driving forces of the rapidly emerging global new energy economy and have brought historic changes to the global automobile manufacturing industry." The rapid growth of new energy vehicles is accelerating the low-carbon transformation of the global transportation sector. According to a report by the International Energy Agency, in 2022, electric vehicles will net reduce global greenhouse gas emissions by approximately 80 million tons. It is expected that by 2030, automobile electrification will cut global oil demand by at least 5 million barrels per day.

Comprehensive report by Beijing Business Daily