(Originally published on 05/07/2015)

Supporting Beijing’s drive for greater energy-efficiency and cleaner air, the United Nations Development Programme (UNDP) today launched a new project to help the city get old vehicles off the road and promote the use of new energy-efficient vehicles. The launch event took place with guests including representatives from government counterparts and the project implementing partner Beijing Environment Exchange, experts from research institutes and members of the automobile industry.

With rapid economic growth the number of vehicles in Beijing has surged in recent years, reaching 5.58 million in 2014 and another 200,000 cars entering the city or passing through every day, the exhaust fumes from these vehicles account for approximately 31 per cent of PM 2.5 emissions in Beijing, particle matters which not only pollutes the air but also poses a threat to human health by affecting respiratory and cardiovascular functions.

“The issue of air pollution is a complex yet important one,’ said Ms. Wang Weili, Deputy Director of China International Center for Economic and Technical Exchange (CICETE), “with UNDP’s strength in public policy recommendations and advocacy, and its international connections, as well as wide participation from government, the private sector and general public, a clean and blue sky is Beijing is foreseeable.”

In line with government work to reduce pollution in China, the project will contribute to the phasing-out of old vehicles which produce high volumes of particulate matter and greenhouse gases.  It will also promote the use of new, energy-efficient vehicles through a series of research studies, policy recommendations and market development initiatives in Beijing.

A key part of the project called the “Old Vehicle Transaction Service Platform” was also officially launched today. The platform is designed to provide a service for owners of old cars to apply for the scrapping, auction or exchange of their vehicles, and receive subsidies towards the cost of a new vehicle. By opening a competitive marketplace for old cars to be scrapped, the scheme uses market forces to set a fair price, encouraging consumers to upgrade to newer, cleaner cars.

“Unlike what we did in the past, which was solely relying on the governments to subsidise the car owners with a fixed sum, this platform allows for automatic transaction and sustainable operation by creating an vehicle scrapping market.” said Professor Du Shaozhong from low carbon and smart research center, Beijing Institute of Technology. The platform has been designed to follow a principle of “Government-led, Market Promotion, Enterprise Participation” according to Mr. Carsten Germer, UNDP China Assistant Country Director.

“I think this platform can not only be a means to dispose of old cars, but also be a platform to promote the utilisation of green vehicles,” said Mr. Ding Yan, Deputy Director of the Vehicle Emission Control Center at the Ministry of Environmental Protection, “and I think the successful experience of this platform can be shared with other cities and allow this model be widely adopted.”