On 20 April, the China Association of Automobile Manufacturers (CAAM) released its draft for comment of the Specifications for accounting and reporting greenhouse gas emissions of manufacturing enterprises in the automotive industry (the “Specifications”). The new document is intended to provide guidance on the measurement of greenhouse gas (GHG) emissions for automobile and auto component manufacturers in China. Members of the drafting committee include major Chinese OEMs and several key Chinese component makers, such as CATL.
The Specifications address four categories of GHG emissions: direct emissions from fuel consumption and manufacturing, indirect emissions from purchased energy, indirect emissions from logistics and travel, and other indirect emissions.The first three categories are considered compulsory for reporting. The Specifications also provide a series of calculation methods and GHG emission factors for measurement based on existing Chinese and international standards, and in reference to the specific conditions of China’s auto sector.
As a group standard initiated by the CAAM, the Specifications are advisory in nature and will not have binding effects on the industry. However, as one of the most prominent auto industry associations in China, the CAAM has the ability to influence the decision-making of the Ministry of Industry and Information Technology (MIIT). There is little doubt that the new Specifications themselves, along with the subsequent feedback that will come from those companies that apply the new standards, will serve as important points of reference for formulating a more comprehensive national standard in the future.
The China Automotive Technology and Research Center (CATARC) is another Chinese industry think-tank that is conducting standard-setting on GHG emissions in the auto sector. Its current focus is life cycle assessment of vehicles and components.
Chinese authorities and businesses are racing to complement the regulatory system for carbon emissions in the auto sector. The idea is to better guide the industry towards peak carbon and carbon neutrality, a national priority for the Chinese government. More important, however, is that the issue of carbon emissions is becoming a critical factor for vehicles and components produced in China that are entering the global market, in a context in which following the rules set by other countries and organisations may not be in the best interest of Chinese companies and regulators. Establishing and applying Chinese standards for carbon accounting can help build knowledge about the “Chinese characteristics” of carbon emissions in the auto industry, and provide arguments to support China’s stance in international standard-setting.
Sandpiper North Head's Green China series provides insights on issues related to sustainability, environment, energy among others in China.
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