China has plans to replace approximately a million heavy-duty diesel trucks with vehicles that burn cleaner fuel as part of Beijing's plan to curb pollution, according to a report from Reuters.
The elimination of the diesel trucks, which make up almost 20% of the country’s national fleet, could have negative impact to oil refiners, Reuters reports. Last year, China announced plans to create a deadline for automakers to end the sale of fossil-fuel powered vehicles as the country aims to reduce oil consumption and pollution and push for the development of electric vehicles. This followed the U.K. and France’s announcement to also phase out vehicles using gasoline and diesel.
China's ministries of transport and environment are considering proposals to replace vehicles with modern trucks using a higher grade of diesel called National Five, and using electric trucks or ones that run on liquefied natural gas (LNG), Reuters reports.
Last month, FedEx said it would replace its gasoline-powered delivery vehicles with an initial fleet of 48 battery-electric vans in 13 cities in China, the company announced.