Shanghai offers incentives to scrap older vehicles

The city government of Shanghai said it will give residents an average subsidy of RMB5,000 (US$731.69) if they trade their older vehicles that meet China I or lower emission norms for newer, more fuel efficient models that meet China IV standards. The offer, which will take effect from June 1, 2009 until April 30, 2010, will vary according to the size and age of the vehicle. The Shanghai government plans to remove up to 50,000 old and polluting vehicles from its city roads by April next year through the replacement scheme, thereby reducing emissions by 8% and boosting spending on vehicles by RMB7 billion (US$1.02 billion). Zhang Xinsheng, vice chairman of the Shanghai Commerce Commission, said the commission hopes that these incentives can accelerate the pace of eliminating polluting vehicles. (June 1, 2009)