Energy Insider: Sales of New-Energy Trucks Surge, Beijing Proposes New Carbon Market Rules

The latest Caixin energy wrap covers significant advancements and updates in China's climate and energy sectors, particularly in policy, industry, and projects. Key highlights include a surge in sales of new-energy heavy-duty trucks, proposed changes to carbon market rules by Beijing, and substantial investments in clean energy. Developments in sodium-ion energy storage and hydrogen-fueled transportation are also discussed.

**Sales of New-Energy Heavy-Duty Trucks Surge by 139%**

Sales of new-energy heavy-duty trucks in China saw a significant increase of 139% year-on-year during the first five months of 2024. The Gaogong Industry Institute reported that advancements in battery technology and government support have driven this growth. A total of 20,776 new-energy heavy-duty trucks were sold, with the majority being pure electric vehicles (19,700 units), followed by fuel cell trucks (976 units) and plug-in hybrid trucks (100 units) [para. 3]. This is part of China's broader policy efforts initiated since 2021 to promote new-energy heavy-duty trucks to mitigate pollution. Notably, despite heavy trucks comprising only about 4% of all vehicles, they contribute disproportionately high emissions of pollutants [para. 3].

**Beijing Proposes New Rules for National Carbon Market**

The Ministry of Ecology and Environment (MEE) has proposed revisions to the national carbon market to address emissions more effectively. New measures include capping the carryover of unused permits from previous years to curb the oversupply of emission allowances, which is currently around 360 million tons [para. 6]. Companies will need to account for their emissions annually instead of every two years, and indirect emissions will no longer be included in allowance allocations. These changes aim to stabilize and grow the carbon market, initially covering the power sector but eventually expanding to other industrial sectors, such as aluminum and cement, which are expected to encompass about 70% of China's total carbon emissions [para. 7][para. 8].

**China Set to Invest $680 Billion on Clean Energy**

China is expected to invest almost $680 billion in clean energy in 2024, more than twice the amount the U.S. is anticipated to spend and 1.8 times that of the EU's current spending, as reported by the International Energy Agency (IEA) [para. 10]. This investment is propelled by China's large domestic market and rapid growth in solar cells, lithium batteries, and electric vehicles (the "new three" industries), which saw a 30% year-on-year increase in exports in 2023. Despite this, there's concern about domestic oversupply and cutthroat price wars in the clean energy sectors [para. 11][para. 12].

**Major Sodium-Ion Energy Storage Station Begins Operation**

China Datang Corp. Ltd. announced that an energy storage station powered by sodium-ion batteries started operations in Central China’s Hubei province on June 30. The current phase can deliver up to 50 megawatts instantaneously and store 100 megawatt-hours, enough to power 12,000 households for a day. Sodium-ion batteries are considered safer and more cost-effective than lithium-ion alternatives, especially under low temperatures [para. 14]. This development follows the operation of a smaller sodium-ion energy storage station in Guangxi Zhuang autonomous region in May, signaling progress in commercializing this technology [para. 15].

**Hydrogen-Fueled ‘Smart Tram’ Rolls Off Production Lines**

A hydrogen-fueled tram, requiring no tracks and termed a “smart tram,” has been launched in Yibin, Sichuan province. This new tram, capable of traveling over 200 kilometers on a single charge, is China’s first trackless tram powered by hydrogen rather than conventional batteries [para. 18]. Cities like Taiyuan and Hefei have already adopted hydrogen bus routes, and Ordos launched a hydrogen filling station, reflecting China's strengthened support for hydrogen-fueled public transport [para. 19].

These initiatives underscore China's aggressive push towards sustainable and clean energy solutions across various sectors.