China China announces pilot program to implement EPR scheme for automobiles

China’s Ministries of Industry and Information Technology, Science and Technology, Finance, and Commerce on June 9 issued a circular on a plan for a pilot program to implement automotive product extended producer responsibility (EPR). The plan sets out the objectives, details, procedures, management, etc. of the pilot program. Here is an overview:

 

Objectives of the pilot program

The government aims to establish a set of model companies for automotive product EPR, and develop an automotive product EPR implementation model that is suitable for China’s conditions.

It intends to achieve the following objectives by 2023 as well:

  • Significantly increase the rate of standardized end-of-life vehicle (ELV) recycling, and develop a reproducible and easily adoptable model of ELV recycling for which vehicle manufacturers are responsible
  • Increase the recycled portion of the ELV body in phases to achieve a comprehensive recycling level of 75 percent
  • Develop a green supply chain system for vehicles to increase the vehicle recycling rate to 95 percent as well as ensuring at least five percent of each key part of vehicles is made of recycled materials

 

Details of the pilot program

  1. ELV collection system
    • Establish collection networks and a management system for ELVs and scrap parts
    • Organize ELV recycling industry groups where the members jointly create and operate ELVs and scrap parts collection service networks, with which they are expected to promote standardized collection
    • Establish incentive mechanisms to encourage transfer of ELVs in a standardized manner
    • Establish a digital management system and an integrated EPR management system

 

  1. Comprehensive recycling
    • Study, develop and apply key fundamental technologies, such as careful dismantling of ELVs; remanufacturing of ELV parts, including the “five main components” (五大总成); cascading of traction batteries; and high-value-added recycling of parts and materials from dismantled vehicles
    • Promote the use of recycled and remanufactured parts
    • Develop standards for used parts recycling technology and consider establishing standard systems for ELV dismantling, recycling of parts and materials from dismantled vehicles, waste disposal, etc.

 

  1. Green supply chain management
    • Establish a green supply chain management system
    • Choose environmentally friendly materials and increase the recycling rate of vehicles
    • Promote green procurement as well as research and development of green products
    • Increase the proportion of fuel-efficient, low-emission and new energy vehicles in total vehicle production

 

  1. Enhancement of information disclosure
    • Require vehicle manufacturers to ensure reliable traceability of key parts, including the traceability of traction batteries for recycling
    • Create a system to share information on producer responsibility fulfillment in the automotive industry
    • Publish vehicle maintenance and dismantling manuals
    • Regularly publish information on ELVs and scrap parts collection centers, comprehensive recycling, remanufacturing, etc.

 

The full text of the circular is available on the website of China’s Ministry of Industry and Information Technology:
https://www.miit.gov.cn/zwgk/zcwj/wjfb/zbgy/art/2021/art_41ae7b048792416ca167bde07368475f.html.