Beijing, January 2, 2025 – The Europe Today: China’s first Energy Law officially took effect on January 1, marking a significant milestone in the country’s approach to energy planning and development.
The new law provides a legal framework for energy planning for the first time, emphasizing its pivotal role in guiding national energy development. It seeks to promote high-quality energy development, ensure national energy security, accelerate the green transition, and support China’s carbon peak and carbon neutrality goals.
One of the key objectives of the law is to boost the development and utilization of renewable energy and increase the share of non-fossil energy consumption in the national energy mix. The law encourages individuals and businesses to adopt green and low-carbon production and consumption practices, reinforcing the country’s commitment to sustainability.
A major shift introduced by the law is the formal recognition of hydrogen as an energy source. Previously classified as a hazardous chemical, hydrogen is now integrated into the energy management system. “For the first time, hydrogen is recognized as energy under national law, clarifying its energy attribute and opening up chances to promote the development of the hydrogen energy business,” said Wan Jinsong, deputy head of the National Energy Administration.
The law also acknowledges the importance of Green Electricity Certificates (GECs), which were introduced in 2017 to create a market-based mechanism for renewable electricity. GECs serve as the sole means of validating renewable energy production and consumption. As of October 2024, China had issued 3.55 billion GECs. The law aims to support increased green electricity use across society and promote the transformation of energy security.
“The energy law sets the order of importance for developing and using fossil fuels and green energy. It also makes it clearer which energy type is more important for development and use, and it makes it easier to switch to non-fossil energy in a safe, reliable, and orderly way,” Wan added.
In addition to these provisions, the law introduces innovative measures such as energy production capacity reserves and mineral resource reserves. For the first time, it also defines corporate social responsibility reserve obligations to ensure energy security during extreme situations, further solidifying China’s commitment to energy resilience and sustainability.
