China’s inaugural energy law came into effect on January 1, providing a legal framework for energy planning and reinforcing its pivotal role in national energy development.
The legislation focuses on advancing high-quality energy practices, safeguarding national energy security, expediting the green energy transition, and aiding China’s carbon peak and neutrality ambitions. It also prioritizes the use of renewable energy and seeks to increase the share of non-fossil fuel consumption, encouraging both individuals and businesses to embrace eco-friendly and low-carbon habits.
A significant feature of the law is the formal inclusion of hydrogen, previously treated as hazardous chemicals, into the national energy management framework.
Wan Jinsong, deputy chief of the National Energy Administration, highlighted that hydrogen’s classification as an energy source under the new law paves the way for its industry development. The law also establishes the legal significance of Green Electricity Certificates (GECs), fostering the broader adoption of green electricity.
Introduced in 2017, GECs are crucial for verifying renewable energy production and consumption. By October 2024, China had issued 3.55 billion GECs, demonstrating the nation’s commitment to renewable energy.
Wan noted that the energy law prioritizes the development and usage of fossil fuels and green energy, offering a clear pathway to transitioning to non-fossil fuels safely and systematically.
Additionally, the law introduces innovative provisions, such as reserves for energy production capacity and mineral resources, and for the first time, mandates corporate social responsibility reserves to ensure energy security in extreme conditions.
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