China’s first energy law adopted by the 12th session of the Standing Committee of the 14th National People’s Congress, the country’s top legislature, on November 8, 2024, takes effect on January 1, 2025. This milestone marks a significant step forward in the modernization of China’s energy governance system and capacity, and this foundational and overarching legislation in the energy sector fully embodies the nation’s energy strategy and policy direction. It not only establishes a comprehensive institutional framework for China’s green and low-carbon energy transition, but also injects fresh momentum into its high-quality economic and social development.
For one thing, the law advances the energy consumption revolution and fosters a green, low-carbon consumption model.
As the world’s largest energy producer and consumer, China has long been committed to optimizing its energy consumption structure and improving energy efficiency. The law explicitly incorporates “promoting the energy consumption revolution” into its legislative objectives. Through a series of institutional measures – such as the minimum target share system of renewable energy consumption, the renewable electricity consumption guarantee mechanism and the renewable electricity certification system (commonly known as the “green certificate”) – the law aims to cultivate a model with the focus on green and low-carbon consumption.
The legalization of the green certificate system not only provides authoritative recognition of the environmental attributes of renewable electricity, but also offers effective market incentives for individuals and enterprises to prioritize purchasing and using clean energy. Such prioritization will serve as a powerful driver for further optimizing China’s energy consumption structure.
The energy law drives energy technology innovation for core competitiveness of key industries.
As global advancements in new energy technologies continue to accelerate, the law dedicates a specific chapter to establishing institutional guarantees for technological innovation in the energy sector. It emphasizes the development of a system for innovation led by national strategic scientific and technological forces, driven by enterprises and guided by market demand, while fostering the synergy of industries, universities and research institutes. In so doing, it provides a robust legal framework to support the revolution in energy technology.
The law focuses on breakthroughs in key technologies, outlining the need to enhance research and development in foundational, cutting-edge and critical technologies, covering areas such as the clean and efficient use of fossil fuels, large-scale application of renewable energy, energy storage and hydrogen as a fuel. Technological innovation in energy is identified as a priority in national sci-tech development plans and high-tech industrial development strategies.
The law also proposes improving industrial, financial and government procurement policies to encourage and guide non-governmental capital to invest in such innovation. These measures ensure sustained policy support for tackling challenges in key energy technologies and converting innovation into tangible outcomes, thus laying a solid foundation for the upgrading of China’s energy sector.
In conclusion, the enactment and implementation of the energy law underscore China’s forward-looking strategy and steadfast commitment to promoting a green, low-carbon energy transition. Using this law, China expects to see green energy consumption become a norm and consensus in society and technological innovation inject even greater momentum into high-quality energy development. By anchoring these efforts in the rule of law, it establishes a strong energy foundation for Chinese modernization.
Editor’s note: Liang Yongmei, a special commentator for CGTN, is an associate research fellow at the Institute of Industrial Economics under the Chinese Academy of Social Sciences. The article reflects the author’s opinions and not necessarily the views of CGTN or African Times. African Times has published this article in partnership with the China Global Television Network (CGTN)
