China has taken a significant step towards a sustainable future by enacting its first comprehensive energy law on November 8, 2024. Effective from January 1, 2025, this landmark legislation addresses the country’s escalating energy demands, environmental challenges, and evolving global energy governance.
The new energy law establishes a robust legal framework aimed at achieving China’s dual carbon goals while promoting high-quality development. It aligns with global trends, mirroring the United States’ focus on energy security and industrial competitiveness, the European Union’s emphasis on climate action and green growth, and Australia’s commitment to safeguarding its energy supply.
What sets China’s energy law apart is its broad institutional scope and long-term orientation, allowing for flexible adaptation in a rapidly changing energy landscape. The law integrates multiple stakeholders, including government bodies, enterprises, regulators, and consumers, ensuring a collaborative approach to energy governance.
Key provisions of the law include:
- Energy Planning and Oversight: The central government is mandated to set sector-specific and regional energy development goals, while local governments must align their policies with national strategies, promoting clean energy projects and secure, environmentally friendly energy supplies.
- Regulatory Enhancements: Comprehensive oversight covers every stage of the energy industry, from production to consumption, aiming to reduce natural monopolies, stabilize markets, and improve emergency response mechanisms.
- Supply Side Optimization: Coal remains a foundational energy source but with a focus on efficiency and cleaner usage. Renewable energy development is encouraged through tax incentives, subsidies, and the inclusion of hydrogen energy in China’s energy management system.
- Demand Side Promotion: Policies such as minimum renewable consumption ratios and green power certificates incentivize both enterprises and consumers to adopt clean energy, accelerating the green transformation from both supply and demand perspectives.
By fostering a balanced and sustainable energy ecosystem, China’s new energy law not only addresses domestic needs but also positions the country as a leader in global energy governance. This strategic foresight ensures that China can navigate the complexities of the global energy market while contributing to worldwide sustainability efforts.
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China's energy law promotes green transition, global energy governance
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