Carbon credits driving car imports. What’s the scam with BYD?
China’s BYD, the world’s largest electric vehicle maker, keeps 13,000 more cars in stock than it needs for sale in Australia. What is fraud?
The scam is that BYD can take advantage of the Australian Carbon Credit scheme, which credits ACUs on imports but not sales. By importing more cars than it needs, BYD can sell carbon credits to other manufacturers that fail to meet low-emission vehicle sales targets.
AFR Reports on data from the Federal Chamber of the Motif Industry (FCAI) shows that in the first nine months of this year, BYD imported 50,918 vehicles and sold only 37,923 vehicles. In comparison, Tesla imported 22,355 units and sold 22,653; This reflects the norm for all other major manufacturers.
Modern vehicle distribution is a just-in-time job, as many people who have waited months for their new car to be delivered can attest.
The difference between imports and sales can of course be attributed to the slowdown in sales, but BYD ($) says It imports “to meet the increasing demand for its vehicles.”
By selling credits to other producers who fail to meet their targets according to government targets New Vehicle Efficiency StandardThey can earn up to $7,050 per imported vehicle.
At best, it’s a zero-sum game for the planet.
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Kim Wingerei is a businessman turned author and commentator. He is passionate about freedom of expression, human rights, democracy and the politics of change. Originally from Norway, Kim has lived in Australia for 30 years. Author of ‘Why Democracy is Broken – A Blueprint for Change’.
