Li Shufu, Chairman of the Zhejiang Geely Holding Group and a member of the Chinese People’s Political Consultative Conference National Committee (FILE)

China should improve its carbon trading system and introduce carbon credit management measures for commercial vehicle manufacturers, Li Shufu, founder and Chairman of the Zhejiang Geely Holding Group, the country’s largest private-owned automotive group, said.   

Li, a member of the 14th National Committee of the Chinese People’s Political Consultative Conference (CPPCC), China’s top political advisory body, made the proposals in light of the country’s goal of peaking carbon dioxide emissions before 2030 and achieving carbon neutrality before 2060.   

“Carbon emission management has become increasingly important as the country is underway to transform its economic development model and encourage green and low-carbon development,” Li told Beijing Review.    

“The challenges facing the country are a large emission volume and a short time to accomplish its goals,” Li said, further noting the time from carbon peaking to carbon neutrality the country has pledged is far shorter than the timeframes demarcated by developed countries.     

Part of the role of CPPCC National Committee members includes making proposals to government departments, which are obligated to consider them and provide feedback. Li has submitted his proposals to the ongoing First Session of the 14th CPPCC National Committee, taking place in Beijing on March 4-11, which will review them before handing them over to the related departments.   

Li said Chinese companies are still at a fledging stage in terms of carbon management and many have not yet recognized its importance.    

Li proposed improvements to the national carbon emission trading market to allow it to take on a bigger role in carbon emission reduction.     

China launched the world’s largest carbon trading market in July 2021, giving companies financial incentives to reduce their emissions by allotting credits to those who pollute below their allowances while requiring those who exceed their limit to purchase additional credits.   

“It is an effective market mechanism to encourage companies to reduce their carbon emissions, but its coverage is still limited,” Li said.     

The market currently covers about 2,000 companies in the coal-fired power generation industry. Li proposed expanding it to iron and steel, cement and nonferrous metal industries by 2025 and then all major carbon dioxide emitters by 2030.    

He also mentioned the popularization of carbon footprint labels, which will help consumers quantify the environmental impact of their potential purchases and inspire more innovation and new business undertakings associated with low-carbon lifestyles.    

“The carbon emission reduction for commercial vehicles is of great significance for national energy security, energy conservation and emission reduction,” Li, a leading figure in car manufacturing, said.     

Commercial vehicles refer to motor vehicles used for transporting goods or paying passengers, as opposed to passenger cars for private use. Although they account for 12 percent of China’s car ownership, they are responsible for more than half of all gasoline and diesel consumption by motor vehicles and 56 percent of all their carbon dioxide emissions.     

Li suggested introducing a credit management system, under which credits are given to environmentally friendly automakers, to encourage commercial vehicle manufacturers to switch to new-energy vehicles.     

“The introduction of the [proposed] measures will generate more investment in the industry,” Li said.    

Copyedited by Elsbeth van Paridon 

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