In a significant move to promote environmental sustainability, China's Ministry of Transport, Ministry of Public Security, Ministry of Finance, and Ministry of Commerce have jointly issued a new policy to accelerate the retirement and replacement of aging commercial trucks, particularly those meeting National III emission standards or below.
Policy Objectives and Financial Support
The initiative aims to improve vehicle emission standards and drive high-quality development in the transportation sector. As part of the central government's economic agenda and supply-side structural reforms, the policy establishes a cost-sharing mechanism between central and local governments: 85% central funding for eastern regions, 90% for central regions, and 95% for western regions.
Implementation Timeline and Eligibility
The program will run from July 31 to December 31, 2024 , covering both the retirement of aging trucks and subsidies for new energy urban cold-chain distribution vehicles. Eligible vehicles include medium and heavy-duty diesel trucks meeting National III emission standards or below, with applicants required to present proper documentation from public security authorities and valid road transport certificates.
New Vehicle Requirements
Replacement vehicles must be registered as either National VI emission standard or new energy vehicles, with ownership matching the retired vehicle. New energy vehicles must meet specific technical requirements and be listed in the purchase tax exemption catalog.
Administrative Procedures
Provincial governments are instructed to establish streamlined application processes, preferably through convenient e-government systems. Municipal transport departments will assist in verifying vehicle information, collaborating with public security and commerce departments to ensure accuracy. Approved applications will receive funding within 15 working days of submission.
Oversight and Public Engagement
Financial departments will monitor fund allocation and conduct periodic audits, while local authorities are tasked with comprehensive policy promotion through multiple channels to encourage industry participation. The notice emphasizes maintaining sector stability and promptly addressing public concerns during implementation.
This policy marks a crucial step in China's transportation sector green transformation, contributing to long-term ecological goals and sustainable development.
