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Policies

Dual Credit System

Source: International Energy Agency
Last updated: 2 February 2023

The Dual Credit scheme creates dual credits based on Corporate Average Fuel Consumption (CAFC) targets and New Energy Vehicle (NEV) targets. Increasingly stringent fleet-wide CAFC targets for auto-manufacturers will move from a 5L/100 km target in 2020 to 4L/100km by 2025 and 3.2L/100km by 2030. Credits are based on vehicle efficiency, electric range and weight. Additionally, mandated production targets are placed on auto-manufacturers for NEVs, based on the percentage of produced ICE cars. If, for instance, auto-manufacturers are in a CAFC credit deficit, they are able to use previously banked, produced or purchased NEV or CAFC credits. This is not the case for a NEV credit deficit, which can only use banked, produced or purchased NEV credits. The 2020 amendment updated NEV credit targets for 2021-2023: 14% of production/import of passenger LDVs in 2021, 16% in 2022 and 18% in 2023 (following 10% for 2019 and 12% for 2020). 

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