China May Ban Fossil Fuel Cars

The Chinese government is undertaking a major study to see if it should completely get rid of cars and trucks that run on fossil fuels. The study itself is being used to put pressure on manufacturers to expedite the development and production of alternative fuel-based vehicles and electric vehicles.

The bigger play for the Chinese government is that a major shift away from fossil dependency can reduce its oil imports which has been a stated objective of the government. The government may expand its credit policy for new energy vehicle development and will allot credits to those who push green initiatives and, at the same time, lets those with extra credits trade them with those who have a shortfall. The government is trying desperately to meet its self-imposed carbon emissions cap by 2030, and automakers might shoulder some of the load.