On March 6, the Beijing Municipal Ecological Environment Bureau, alongside six other departments, jointly unveiled the "Detailed Rules for Promoting the Scrapping and Replacement of Old Trucks and Large-to-Medium-Sized Buses with Emission Standards of National IV and Below in Beijing" (hereinafter referred to as the "Detailed Rules"). These rules clearly outline subsidies ranging from RMB 6,000 to a substantial RMB 170,000 for scrapping old vehicles and replacing them with new energy vehicles. This initiative marks the first local implementation of the national "Two New" policy (equipment upgrading and trade-in of consumer goods) in China.

National Policy Sets Clear Direction

Local Regulations Urgently Needed

Pursuant to the "Notice on Implementing the Policy of Large-Scale Equipment Upgrading and Trade-In of Consumer Goods with Intensified Efforts and Expanded Scope in 2025" (FGHZ [2025] No. 13) issued by the National Development and Reform Commission and the Ministry of Finance, regions are encouraged to formulate subsidy policies tailored to their conditions, focusing on supporting equipment upgrades in industries like manufacturing and transportation. These policies aim to reduce corporate costs through ultra-long-term special treasury bonds, loan interest subsidies, and other means. However, most regions in China have yet to issue specific subsidy rules, thus not fully realizing the policy's potential benefits. Beijing's policy stands out by addressing three key scenarios:

1. Scrapping and Replacement with New Energy Vehicles: For instance, scrapping a National IV diesel truck and purchasing a new energy truck or bus can qualify for a subsidy of up to RMB 170,000.
2. Scrapping Only: Old trucks meeting National IV emission standards can receive subsidies solely for scrapping.
3. Purchasing New Energy Cold Chain Trucks: Cold chain logistics operators can receive a subsidy of RMB 35,000 per new energy vehicle purchased.

The policy, effective from January 1, 2025, to December 1, 2025, adopts an "online application + third-party review" model to streamline processes and enhance fund supervision, ensuring a fair and transparent "total control, first come, first served" approach.

Substantial Policy Impact

National Replicable Experience

Data indicates that since Beijing piloted a similar policy in September 2024, it has successfully eliminated over 8,500 old vehicles, reducing nitrogen oxide emissions by more than 700 tons and driving the growth of new energy vehicle consumption. The new round of policies builds on this success, expanding coverage to include special subsidies for new energy cold chain trucks, thereby supporting the development of a green logistics system. At the national level, RMB 500 billion in ultra-long-term special treasury bonds are dedicated to supporting equipment upgrades, explicitly including vehicle scrapping and replacement in key areas, and encouraging local governments to offer differentiated subsidies.

Beijing's experience underscores the need to balance environmental protection goals with market incentives. On one hand, high subsidies accelerate the elimination of high-emission vehicles; on the other, supporting measures such as subsidies for new energy vehicle purchases and charging infrastructure development address users' concerns about transitioning. With pioneering efforts from Beijing and other regions, a nationwide policy framework of "national guidance + local innovation" is anticipated to emerge. The central government can alleviate local financial pressures by enhancing tools like equipment upgrade loan interest subsidies and recycling utilization subsidies, while regions can refine subsidy standards based on industry characteristics (e.g., cold chain logistics, public transportation) to form a differentiated policy matrix.