China drives towards fuel efficiency

The Chinese Government has announced plans to dramatically increase fuel economy regulations as part of ongoing environmental legislation improvements. The authorities aim to deliver standards on par with European requirements as soon as possible, and build on previous successes such as phasing out leaded petrol in under three years.

Rapid growth in China’s vehicle purchasing habits is set to make the territory the largest automobile market by 2020. Therefore demand for fuel efficient vehicles in China at this stage of development is likely to create a massive response from manufacturers.

"It's a big deal when a developing country comes along and institutes regulations that go beyond those of a developed country like the United States," said Amanda Sauer, an economist at the World Resources Institute (WRI). "The reality may be that China gets a big environmental boost -- not from environmental legislation per se, but from policies addressing economic, health, and national security concerns," she added.

Although the primary beneficiary, the environment may not be the driving factor behind the developments. "This is about national security,” explained Dr. Lee Schipper, director of research at WRI's EMBARQ Centre for Sustainable Transportation. “Chinese officials want to curb the country's growing dependence on oil imports from the Middle East."