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Chinese Emissions Rules Spark Green Rush

chinaBill Gates-backed EcoMotors, Peugeot subsidiary Faurecia and Continental are among the vehicle emissions control firms jostling for the business being generated by regulations on diesel emissions set by the Chinese government, reports Reuters.

Regulations come into force in January that aim to eliminate trucks that produce significant amounts of harmful emissions including nitrogen oxide and carbon monoxide, the news service reports. Foreign companies will see the largest benefit from the regulations, Li Jia, an analyst at consultancy IHS Automotive told Reuters.

Parts suppliers involved in the battle for market share include Robert Bosch, Denso and Tenneco. They supply such parts as exhaust systems, turbo chargers and powertrain controls. German automotive supplier Eberspaecher Group has set up a joint venture with Shaanxi Automobile Group to make exhaust systems for the Chinese market.

Earlier this month China pledged to limit its carbon pollution starting in 2016.

The world’s biggest greenhouse gas emitter will write a CO2 emissions cap into its next five-year plan, according to He Jiankun, chairman of China’s Advisory Committee on Climate Change.

China’s announcement came a day after the US proposed a rule to cut carbon emissions from existing power plants by 30 percent by 2030 below 2005 levels.

The country’s energy-intensive and polluting industries continued to grow too fast in 2013, putting pressures on the environment and causing air quality to worsen further, according to a March report.

Picture credit: Asian boy wearing mouth mask against air pollution (Beijing) via Shutterstock

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