Publisher/Organisation: International Council on Clean Transportation (ICCT)
China’s Ministry of Finance, Ministry of Industry and Information Technology (MIIT), Ministry of Science and Technology, and National Development and Reform Commission on March 26, 2019, jointly released A Notice of Further Adjusting Fiscal Subsidies for Promoting New Energy Vehicles. A new energy vehicle (NEV) is a battery-electric, plug-in hybrid, or fuel cell vehicle, and the Notice provides a detailed formula to determine the subsidy due to consumers who buy a new battery electric or plug-in hybrid vehicle in 2019. The Notice outlines tightened requirements to qualify for the subsidy and provide a revised formula to determine the subsidy’s size. Further, it includes guidance regarding the paired incentive from local governments, and a few provisions to enhance the overall effectiveness of the program. The last section of this policy update describes a special provision regarding how the current and new policies connect during the transition period.