China’s Dual Credit for Passenger Vehicles in Policy and Practice

Abstract

The dual-credit policy for passenger vehicles in China is a major policy innovation by China. It is based on corporate fuel consumption standard (CAFC) and new energy vehicle (NEV) credit standard and is an effective means to implement the two standards. It gives companies flexibility to comply with fuel-efficient standards for passenger cars, facilitating government enforcement and helping China's passenger cars become low-carbon.