Global Fuel Economy and Emissions Regulation
The most effective path toward that future is regulation with one set of standards that enables us to optimize innovation efforts. Regulation also should factor in industry developments that have occurred since the policy went into effect, namely autonomous EVs and the advent of new business models that move away from the concept of one vehicle, one owner. Because broad consumer acceptance of EVs is critical, we also support continued incentives to make EVs more affordable for more customers.
Many countries around the world are adopting regulatory standards similar to either those of the U.S., which are based on a footprint metric or size of the vehicle, or those of the EU, which are weight-based. In many cases, there are regulatory inconsistencies when fuel-saving solutions under one system do not translate to another. Though harmonized standards among countries are in the best interests of our customers and the environment, we realize development and acceptance can take years. That’s why we favor mutual recognition agreements, a practice by which two or more markets agree to recognize each other’s standards and eliminate costly and nonbeneficial redundancies.
China implemented the China 5 emission standard nationwide in 2017, which is more stringent than the previous program at every level. The next round of standards, known as China 6, is expected to roll out in some cities as early as 2019. China 6 combines elements of both European and U.S. standards, including stronger emission requirements and extended time and mileage periods over which manufacturers are responsible for a vehicle’s emission performance. We welcomed these changes—in fact, GM gave input as the new standards were being drafted, sharing best practices from our experiences in North America. Another important regulation in China is the New Energy Vehicle (NEV) mandate, which allows manufacturers of passenger cars to earn credits for producing a certain volume of hybrid, battery electric and fuel cell vehicles. This policy, combined with consumer subsidies for purchasing NEVs, has made China an important market for our electrification solutions.