International Diesel Forum urges China to account for 30% of diesel vehicles for 20 years

China's Development Research Foundation recently hosted the "Building a Conservation-Minded Society and Traffic Energy-Saving - International Diesel Development Forum" in Beijing, drawing attention from government officials, industry leaders, and experts. The event highlighted the potential of diesel technology to significantly reduce oil consumption and carbon emissions. According to a research report by the State Council's Development Research Center, increasing the share of diesel passenger cars to 30% by 2020 could save 28.37 million tons of crude oil and cut carbon dioxide emissions by nearly 42 million tons. Currently, diesel vehicles make up 23.7% of China’s car ownership, but only 0.2% of total vehicle production. With projected car ownership reaching 130 million by 2020, expanding diesel use could have a major impact on energy security and environmental sustainability. The forum emphasized the need for policy support to promote advanced diesel technology. Sinopec expressed willingness to launch clean diesel if there was clear regulatory guidance. Experts noted that China's current diesel fuel contains high sulfur levels—up to 800 PPM—compared to just 50 PPM in Europe. Improving fuel quality to Euro 3 or Euro 4 standards would increase costs by 60 and 100 yuan per ton, respectively, requiring government incentives to support clean diesel production. Another key recommendation was to reform taxation policies to favor fuel-efficient vehicles. A “high efficiency, low tax” approach could encourage consumers to choose diesel over gasoline. Additionally, the report urged the inclusion of diesel development in the "Eleventh Five-Year Plan," as many Chinese manufacturers already possess the capability to produce advanced diesel engines. Bosch also announced the successful launch of a domestically developed heavy-duty diesel engine equipped with its common rail system, meeting Euro 3 standards and capable of upgrading to Euro 4 and Euro 5. This marks progress in China’s diesel innovation. Globally, the trend toward diesel vehicles is growing. In the EU, over 50% of new passenger cars are diesel, while the U.S. has seen a 56% increase in diesel vehicle sales over five years. The U.S. government now supports diesel technology, with President Bush stating that raising diesel car usage to 20% could save 300,000 barrels of oil daily. Tax incentives and lower diesel prices in South Korea have also driven diesel vehicle growth. As countries worldwide recognize the benefits of diesel technology, China is at a critical juncture to shape its own energy future through policy, innovation, and sustainable development.

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