Economic Development and Environmental Sustainability
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Eight Questions on China's Development in Energy Conservation and New Energy Vehicles

On May 19, 2010, Jon Li, Secretary-General of IEEPA, attended international forum on China's green transportation development, made a keynote speech: Sustainable Road to China's Ecological Modernization-Analysis on Green Vehicle Industry, and presented eight questions on China's Development on Energy Conservation, New Energy Vehicle.

The background under which the forum was held was that China's strong development on new energy vehicles has drawn widespread concern currently. At the beginning of 2009, Chinese governments including NDRC, the Ministry of Industry and Information Technology, the Ministry of Science and Technology made a joint declaration to vigorously support the development of new energy vehicles, which set off hot wave among the public. In the same year, China's three petroleum corporations formally set foot in new energy vehicles. It is reported that Sinopec focused on the development of natural gas vehicles and hybrid vehicles, CNPC on alternative fuel vehicles like ethanol, CNOOC on electric vehicles and charging network construction. According to new energy vehicle program by DPRC and the Ministry of Science and Technology, the proportion of China's new energy vehicles will account for a half of that in total by 2020, or 65 million vehicles. Recently, Wan Gang, Minister of the Ministry of Science and Technology, made a forecast in one meeting: over 60,000 new energy vehicles will be brought into use by 2012. As per current industry scale and investment condition, from 2010 to 2012, annual capacity of lithium-ion batteries and driving motors of 100,000 electric vehicles will be possible.

When depicting the viewpoint that the establishment and improvement of China's green transportation system is a necessary channel to China's sustainable development-ecological modernization road, Secretary-General Jon Li pointed out: China's development of energy-conservation new energy vehicles was an industrial technology revolution, and a new scratch line, which will bring brand-new development opportunity for China's auto industry. One thing to be noted was that China had formulated major technology planning to boost the development of electric vehicles since 2000, and carried out corresponding layout in terms of power accumulators, driving motors and control systems, laying solid foundation for industrialization in the future. We should enhance the development of electric vehicle industry chains, adhere to R&D of entire vehicles as platform, make breakthrough in key technology like batteries, driving motors, which served as key factor for core competitiveness in China's energy conservation, new energy industry.

Government guide, society and public support, financial tool, mature market operation are key to realize industrialization development. The next 3-5 years are crucial period for China's new energy vehicle development from R&D to industrialization, scale, marketization, he added.

Aside from that, Mr. Li also explained above 8 questions in China's energy conservation new energy vehicle industry: core technology questions of entire vehicles like integrated system technology, energy supply system design and relevant IPR system were far from mature; in terms of economic effect and practical application, high procurement cost, battery attendance and uniform standard are still restrictive factors; electric network, municipal infrastructure are severely incomplete; there are insufficient local technology talents and administration talents for energy-conservation and new energy vehicles when compared with traditional one; environmental problems remain in production, after-sales and recovery process, and there are no uniform measures in support policy in different regions.

In his lecture, Mr. Li also discussed the development and investment value in Northeast Asia, and analyzed the correlated cases of new energy vehicle industrialization in Changchun city, and insisted that Changchun city had formed certain industry development by way of advantageous policy measures and industrial bases, and speeded up industrialization course and so on.

In conclusion, Mr. Li also discussed the cooperation with relevant auto enterprises, and expressed IEEPA would offer feasible cooperation resource network, free expert support, and international cooperation bridge and so on.

It is reported that: as an important auto industry base, Jilin province has implemented strategy to boost the development of pure electric vehicles and parts industries, and establish domestic leading electric vehicle industry base. At the same time, Changchun city and Jilin city have made plan to increase over 500 pure electric vehicles in the fields of buses, environmental-sanitary field, passenger cars by 2012.

The topic of the forum is green traffic and development. As a brand-new concept, green transportation is a system project and a development goal. "Green transportation", on the basis of sustainable development, is a kind of transportation system aiming at relieving traffic jam£¨reducing environmental pollution, promoting social equity, and saving energy and expense. Energy-conservation new energy vehicles, as a kind of ecological transportation tools, belongs to whole green transportation system.

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