China might be taking another step forward in reducing their carbon footprint by making it compulsory for all vehicles in China to have the “BSG hybrid” system. BSG stands for “Belt Driven Starter Generator” and it works like a start-stop system where the engine shuts off when the car is idle. Start-stop is now common in most European new cars and is supposed to be part of “mild hybrid” measures along with things like brake energy regeneration.

This comes after the GM of Chery New Energy Company, Yuan Tao, revealed that relevant authorities are currently working on the new policy. An unnamed insider from another Chinese manufacturer, Dongfeng, confirmed the above statement and added that it would be implemented in 2012. Dongfeng already sells a BSG version of its S30 sedan (pictured).

BSG is a simple system and according to Dongfeng, it will only cost 1,000 yuan ($147.50) per car if mass produced. On average, fuel efficiency is boosted by 5%. It may not sound like much, but when you consider the fact that China used 540 million tons of gasoline and 520 million tons of diesel in 2008, this system could see annual fuel consumption decrease by 5 million tons!