China: Shenzhen’s shift to an electric mobility system | Knowledge Hub | Circle Economy Foundation
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Policy case
China: Shenzhen’s shift to an electric mobility system
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In 2017, the Chinese city of Shenzhen was the first in the world to electrify all public buses. Today, there are over 16,000 e-buses on its streets.

Problem

Globally, the transport sector has the highest fossil fuel dependence of any sector. In 2021, the sector contributed 37% of carbon emissions from end-use sectors. After covid-19 restrictions were lifted, the global transport sector’s carbon emissions grew by 8%, reaching 7.7 billion tonnes CO2 as goods and passenger movements returned to a pre-pandemic pace. Interestingly, electric vehicle (EV) sales also spiked in 2021, with nearly 120,000 cars sold worldwide in one week—compared to 120,000 cars sold annually in 2012. In China, road transport contributed at least 86.76% of carbon emissions in 2019, and the overall transport sector contributed at least 11% to the world’s overall carbon emissions. Much of the sales in EVs in 2021 were led by China, accounting for over half of this sales growth. Moreover, the speed of charging infrastructure rollout in the country is also faster than most regions in the world.

Solution

The Chinese city of Shenzhen led by example for electric mobility in public transport. In 2017, it picked up the gauntlet of the energy transition and electrified all public buses to cut emissions, reduce noise pollution and improve air quality in the city—making it the world’s first city to do so. At present, there are over 16,000 e-buses on the roads. The initiative spurred the development of electric mobility. As a positive outcome of this electrification process, Shenzhen has installed more than 500 bus charging stations and 5,100 bus charging points. With a goal of aligning their vision with circular economy principles, efforts are underway to increase the provision of renewable energy sources. Furthermore, enhancing current battery technologies is being studied to motivate people to reuse but also to experiment with the technology’s adaptability with a wider range of vehicles.

Outcome

It is estimated that the city will experience an annual decline of around 4.316 million tonnes of particulate pollution through the electric mobility transition. In terms of greenhouse gas (GHG) emissions reduction, the average GHG emissions from one electric bus per kilometre is 40% less than a diesel vehicle. Nearly 0.63 million tonnes of carbon emission reduction was achieved in 2017 due to the transition.

There are multiple reasons behind the uptake of electric mobility in Shenzhen. Firstly, the presence of both national- and city-level policies created an enabling atmosphere for the EV mobility system to develop. Secondly, innovation was catalysed with the help of new business models paired with financial support. The integration of a national subsidy and a city government subsidy enabled the initiative to grow and, eventually, become self-sustaining. Thirdly, the availability of electric buses on rent provision took some pressure off of capital outlays, provided protection against financial risks and supported the repairing, refurbishment and reuse of parts.

Overall, via the pilot, the development of the EV sector received a major thrust. For instance, certain incentives were given to EV drivers, such as free licence plates and the removal of a passenger levy for fuel in e-taxis. This measure reduced noise pollution and improved urban air quality, thereby increasing the overall health and environmental outcomes for the city.



Additional information

Photo by Kyle Ryan on Unsplash.

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