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China pulls back on setting tough ethanol fuel content standards

China is likely to miss a deadline for enforcing the mandatory use of ethanol-blended petrol nationwide by 2020, after a backlash from energy firms and local governments thwarted a crucial part of Beijing’s effort to clean up the environment.

Two years after Beijing unveiled its plan for the compulsory use of E10, or petrol with 10 per cent ethanol content, across the country, just three northeastern provinces, home to a vibrant corn ethanol industry, and the northern city of Tianjin have hit the target.

While a number of provinces have experimented with ethanol fuel — which Beijing considers more environmentally friendly — progress is limited, underlining the challenges facing China’s leadership in meeting policy objectives when they are at odds with local interest groups.

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