Traditional automobile supply system in China

Xu Heyi, member of Chinese People's Political Consultative Conference, former Party Secretary and Chairman of BAIC Group.

On September 3 -5, 2002/kloc-0, the 17th China International Forum on Automobile Industry Development (TEDA) was held in Tianjin Binhai New Area, co-sponsored by China Automobile Technology Research Center Co., Ltd., China Automotive Engineering Society, China Automobile Industry Association and China Automobile Newspaper, with special support from the management committee of Tianjin Economic and Technological Development Zone, and co-organized by Japan Automobile Industry Association and German Automobile Industry Association. This forum revolves around "integration? Innovation? The annual theme of "Green" focuses on hot topics in the industry.

On September 4th, in the "High-end Dialogue: Building a Safe and Stable Supply Chain of Automobile Industry Chain", Xu Heyi, member of Chinese People's Political Consultative Conference Economic Committee and former Party Secretary and Chairman of BAIC Group, delivered a speech entitled "Reconstruction of China Automobile Industry Chain Supply Chain under the Double Carbon Target".

Xu Heyi said that after the double carbon target was put forward, it was becoming another important factor affecting the transformation and reconstruction of the automobile industry chain. For traditional fuel vehicles, the carbon emission in the whole life cycle mainly comes from the use stage, in which the carbon emission in the use stage accounts for about 80% of the whole life cycle, while the carbon emission of pure electric vehicles mainly comes from the production stage. Only by combining the upstream and downstream industrial chains and reducing carbon emissions in the production process in the supply chain can green development be truly realized.

In Xu Heyi's view, under the pressure of dual-carbon target, it is becoming more and more important for automobile enterprises to strengthen the carbon-neutral management of supply chain besides paying attention to their own carbon neutrality. At the same time, carbon tariffs will become a new international trade barrier in the future, and enterprises will face new challenges when they go out.

The following is a record of the speech:

Leaders, experts, colleagues and friends, I am very glad to meet you again at the TEDA Auto Forum, and have in-depth exchanges to discuss the development of China's auto industry chain and supply chain.

After the double carbon target is put forward, it is becoming another important factor affecting the transformation and reconstruction of automobile industry chain. Energy saving and emission reduction in the automobile industry is the general trend, but at present, most of us still focus on the use link and reduce vehicle exhaust emissions through energy conversion, such as vigorously developing new energy vehicles. At the same time, decarbonization of automobile industry chain and supply chain is also very important.

I want to take advantage of today's opportunity to talk about some of my views. Then, around the decarbonization of supply chain and industrial chain, I think there are three main considerations.

First, the main source of carbon emissions in the era of comprehensive new energy has shifted from the use stage to the production stage. At present, with the accelerated popularization of new energy vehicles, the carbon emission source of automobile life cycle mainly shifts from the use stage of traditional fuel vehicles to the production stage of pure electric vehicles. For traditional fuel vehicles, the carbon emission in the whole life cycle mainly comes from the use stage, in which the carbon emission in the use stage accounts for about 80% of the whole life cycle, while the carbon emission of pure electric vehicles mainly comes from the production stage. According to McKinsey's report, its data shows that by 2025, the emissions of electric vehicle materials will account for 45% of the total emissions of vehicles throughout their life cycle, and by 2040, the carbon emissions produced by materials will account for about 85%. It can be seen that accelerating the low-carbon transformation of industrial chain and supply chain has become the key to carbon neutrality in the era of new energy vehicles, especially the production process of automotive materials and power batteries. Only by combining the upstream and downstream industrial chains and reducing carbon emissions in the production process in the supply chain can green development be truly realized.

The second point is that vehicle companies should strengthen the carbon-neutral management of supply chain under the pressure of carbon double targets. In the era of carbon neutrality, automobile manufacturers not only have to bear the responsibility of carbon neutrality, but also put forward higher requirements for supply chain enterprises in carbon emission reduction. Among the car companies that have announced the timetable to achieve carbon neutrality, decarbonization of industrial chain has become a common concern of enterprises. For example, Toyota requires its major suppliers to reduce their carbon emissions by 3% in 20021year compared with the previous year. The BMW Group plans to reduce the carbon emissions of the supply chain by 20% in 2030 compared with 20 19. Volvo plans to reduce the total emissions of the supply chain by 25% during 20 18-2025, and achieve zero emissions from suppliers by 2040. This morning, Honda also introduced their plan to achieve the goal of double carbon, that is, to achieve zero carbon emission by 2040. In addition, some vehicle manufacturers said that they would not give orders to suppliers who did not take enough actions to reduce the environmental impact, nor would they choose suppliers who did not promote the low-carbon transformation of the overall business in accordance with the requirements of the Paris Agreement. So in general, with the importance of carbon neutrality in vehicle manufacturers, decarbonization as soon as possible is a wise choice for suppliers. If we do not take active actions to reduce carbon emissions and fail to meet the carbon emission requirements of automobile manufacturers, we may face the risk of being eliminated by automobile manufacturers.

Third, carbon tariffs have become a new international trade barrier, and enterprises will face new challenges when they go out. With the promotion of global carbon neutrality, developed economies may set obstacles to products, services or investments that do not meet carbon emission standards. Including carbon border adjustment mechanism, carbon tariff, carbon quota purchase, etc. Forcing other countries to meet their low-carbon requirements. Take the European Union as an example. In June 20021,we started the legislative process to promote the implementation of the carbon border adjustment mechanism and levy a carbon border adjustment tax on products exported to the EU. In addition, with the carbon emission of the automobile industry shifting from direct road emission to full life cycle, the EU is gradually managing the carbon emission of the automobile industry from the perspective of full life cycle, including the stages of raw material acquisition, vehicle production, fuel production and direct road emission. It is predicted that before 2023, the EU will establish a reporting standard for carbon emission data of automobile life cycle. However, there is still a big gap between China's carbon emission standards for automobile products and the European Union. Taking pure electric vehicles as an example, it is predicted that by 2030, the carbon emissions of intermediate pure electric vehicles in the EU will be reduced to 65g CO2 equivalent per kilometer in the whole life cycle. Under the existing policy background, according to the calculation of China Automobile Center, by 2030, the carbon emission of intermediate pure electric vehicles in China will be per kilometer 1.30g CO2 equivalent, while that in the EU is 65g, and our forecast is 65438. The main reason for the gap is the high proportion of fossil energy in raw material production process, primary energy and power generation. Therefore, carbon tariff, as a trade barrier, has become one of the important factors affecting the internationalization of China's automobile industry, and carbon neutrality in the supply chain has become more and more important. The above three reasons have been discussed. Generally speaking, the realization of the goal of double carbon in the automobile industry is led by the whole vehicle enterprises, but the focus is on all links and suppliers in our industrial chain, including design, procurement, production, use, recycling and service. Only through the upstream and downstream linkage of the industrial chain can we promote the carbon reduction and decarbonization of the automobile industrial chain and the whole life cycle of products and realize the real green transformation.

To this end, in view of the carbon neutrality of the supply chain of the automobile industry, combined with the development status of China, I also put forward the following three suggestions.

The first point is to increase technological innovation and reduce the carbon emissions of automobile suppliers. Carbon neutrality in supply chain is a trend and an important way to improve the competitiveness of enterprises. For enterprises, the key to reduce carbon emissions is to adopt new technologies, new materials and new processes. In the supply chain, from the development and design of automobile parts to research and trial production, from mass production to the selection of raw materials, almost every link can deeply tap the potential and reduce carbon emissions. It is suggested that domestic enterprises should speed up the pace of low carbon, strengthen technology drive, reduce carbon emissions with energy-saving technology, new energy vehicle technology and carbon capture frontier technology, and build core competitiveness, so as to drive the industry to achieve the goal of carbon neutrality at the peak of carbon dioxide emissions.

The second is to accelerate the development of circular economy and improve the recycling rate of key components. Vigorously developing circular economy and improving the utilization efficiency of energy and renewable resources is one of the important ways to promote carbon neutrality at the peak of carbon dioxide emission. For China's automobile industry, the recycling of raw materials and parts, especially the recycling of power batteries, is of great significance for reducing carbon emissions. According to statistics, the carbon reduction per ton of scrap steel recycling is 0. 15 tons, and the carbon reduction per ton of plastic recycling is 0.36 tons. Remanufacturing auto parts can also reduce greenhouse gas emissions by 70%-90%. The carbon reduction effect of our waste power battery is 0. 19 tons per kwh. Therefore, strengthening the recycling of materials and parts in the automobile industry is the basic guarantee to help the whole industrial chain decarbonize deeply. At present, a number of policies have been issued at the national level to vigorously develop the remanufacturing production of auto parts. Comprehensively promote energy conservation and low-carbon emission reduction in the industry. In April this year, the National Development and Reform Commission, the Ministry of Industry and Information Technology and other eight departments jointly issued the Interim Measures for the Administration of Remanufacturing Standards for Auto Parts. Further standardizing the development of parts remanufacturing has laid a solid foundation for promoting the low-carbon automobile industry. It is suggested that industries and enterprises should seize the opportunity, vigorously develop circular economy, improve the utilization rate of resources and help the automobile industry chain to be carbon neutral by strengthening the reusability and repairability of products.

Finally, it is suggested to strengthen policy guidance and improve the construction of automobile carbon emission standard system. Compared with developed countries, the relevant policies and regulations system of carbon neutral development of China automobile industry at the peak of carbon dioxide emission is not perfect. At the policy level, it is suggested that the country should make clear the direction and roadmap of low-carbon development of the automobile industry as soon as possible, and issue a medium-and long-term development plan specifically for the goal of double carbon. At the same time, speed up the establishment and improvement of automobile carbon emission standard system, and explore the establishment of a life-cycle carbon emission standard system including the comprehensive utilization of whole automobile, key parts, automobile materials and fuel resources, so as to provide a basis for automobile industry enterprises to build their product life-cycle carbon emission management capabilities, and promote the green and low-carbon development of automobile industry chain and life cycle.

These are three suggestions. It is a highly complex and widely related national system engineering to achieve the goal of carbon neutrality at the peak of carbon dioxide emission. China's automobile industry, as the leader in the transformation and upgrading of the national economy, is the main force and vanguard in implementing the goal of double carbon. Facing the future, with the promotion of multinational automobile enterprises and the active action of parts giants, carbon neutrality of automobile industry chain and supply chain will become a new development trend. It is suggested that upstream and downstream enterprises in the industrial chain should increase technological innovation, strengthen cooperation and coordination, and formulate and implement carbon reduction plans as soon as possible from the height and breadth of the whole life cycle and the whole ecosystem, so as to contribute to the realization of the goal of double carbon. Thank you!