Charge ahead: exploring China’s electric vehicle market enablers

Location

Online

Organizer

ESCWA
GEIDCO

Contact information

Mr. Jil Amine
jil.amine@un.org

ESCWA and the Global Energy Interconnection Development and Cooperation Organization (GEIDCO) are organizing a webinar entitled “Charge ahead: exploring China’s Electric Vehicle Market Enablers”.

The webinar provides an overview on the electric vehicle (EV) market in China, and focuses on the technical and policy enablers paving the way for growth and transition. It also features the experience of Jordan, whose EV market is experiencing exponential growth.

The webinar is part of a series of webinars and workshops that emphasize reverse knowledge opportunities for the Arab region and address a variety of topics related to regional energy collaboration.

Outcome document

Meeting outcome

Energy and mobility are critical sectors for achieving the Sustainable Development Goals and climate ambitions especially since many modern mobility services are dependent on reliable access to energy and infrastructure. Given that the transport sector is the fastest growing emitter of global greenhouse gas emissions, the challenge the world faces is to provide access to energy and mobility while avoiding an increase in local and global pollutants. This can be achieved as the share of renewable energy becomes more significant in the energy mix, thereby enabling EVs to become an economic path to more efficient and sustainable travel.
The development of new energy vehicles (NEV) and infrastructure in China is a long-term process with different policies adopted at different stages based on market signals to guide the direction of industrial development and ensure its healthy growth while also empowering the private sector to innovate and invest in accelerating the transition to EVs.
Various technologies are actively being explored to promote the scientific development of industries and standardization is a key aspect to ensure the safety of products and the interoperability of various subsystems. Successful standardization initiatives were the result of international cooperation which saw China, Japan, Germany, Italy, Australia, the Netherlands, Switzerland, and South Korea team up and work together to produce key EV industry standards.
China's EV market evolution relied on its national strategy made up of three main pillars: dual-carbon goals of achieving carbon peaking before 2030 and carbon neutrality before 2060; energy security to reduce dependence on foreign oil imports; and building a “beautiful China” which calls for the construction of a great modern socialist country with much fewer pollutants.
A system of policy guidance and management has been officially established and continuously improved. The system covers research and development, access and production, tax incentives and new business models, battery recycling management, electricity pricing policy, and the construction of EV charging infrastructure.
The Roadmap 1.0 for Green and Low Carbon Development of the Automotive industry clarified the carbon emission accounting boundary of the auto industry; stressed on the importance of reducing carbon emissions from vehicles; established the overall goal and the key path for the green and low-carbon development of the industry; and proposed the safeguard measures to support it.
Fiscal subsidies played a very important role during the early stages of EV promotion, but they have been phased out now. Instead, purchase tax exemption policies remain in effect until 2027 to continue advancing the promotion and adoption of EVs.
The implementation of this integrated policy framework has resulted in four major effects: the sales of EVs grew rapidly; the energy-saving and carbon emission reduction work achieved remarkable results in the auto industry; national brands and featured products have emerged; and the key technical indicators of EVs has been effectively improved.
Thanks to Jordan’s policy initiatives, led by the Ministry of Energy and Mineral Resources and the Energy and Minerals Regulatory Commission, the local EV market has seen tremendous growth which is proving effective in reducing dependence on fossil fuels and polluting emissions given the country’s 27 per cent share of renewable energy in the electricity mix.

Discussion

Presentation by Mr. Feng Ni on the Chinese EV Market Overview and Technical Enablers

By the end of 2023, the total number of NEVs in China reached 20.41 million accounting for 6 per cent of the total number of cars.
A successful charging infrastructure policy advancement system requires planning, financial subsidies, industry regulation, technological innovation, charging pricing, and macro integration.
The Plug&Charge system pioneered in China features a fast and convenient charging experience with no scanning, no card, and no username and password.
Various interaction venues between EVs and the grid exist such as orderly charging and bi-direction charging.
China’s EV charging infrastructure standard system covers terminology, logo identification, information safety, energy transfer, service network, and construction and operation.

Presentation by Ms. Ran Ji on the Chinese EV Market Policy Enablers

The Chinese economy will continue its mild recovery while competition in the EV industry turned fierce with market participants intensifying their efforts to satisfy both supply and demand.
The scale of exports will gradually approach the peak value, and special attention will need to be given to the expansion of industry and technologies overseas.
The roadmap 1.0 for green and low carbon development of the auto industry is released, proposing guiding goals for NEV.
The long-term mechanism to guide the coordinated development of energy conservation and new energy vehicles is established through the dual credit policy
Subsidy is withdrawn, but tax incentives and diversified demonstrations and applications will propel the sustainable development of the market.

Intervention by Ms. Bushra Fahed Al-Abbadi on Jordan’s EV Experience

The number of EVs in Jordan has risen from zero in 2014 to approximately 60,000 by the end of 2023, supported by a maximum customs tax rate of 15 per cent.
The Energy and Minerals Regulatory Commission (EMRC) approved the installation of 3,000 EV charging meters in homes so far as well as 68 licenses for public and private EV charging stations.
The growth of the EV sector is very encouraging since renewable energy accounts for 27 per cent of the electricity mix.
In line with the Jordan Energy Strategy (2020-2030), the Ministry of Energy and Mineral Resources (MEMR) is currently developing a study on the options of EVs strategies which will explore the required infrastructure options and incentives needed to further encourage the promotion and adoption of EVs.

Participant list

List of Participants