China has taken a monumental step in its energy sector by adopting its first comprehensive energy law, passed at the 12th session of the Standing Committee of the 14th National People’s Congress on November 8, 2024. Coming into effect on January 1, 2025, this landmark legislation signals a significant advancement in the nation’s energy governance and strategic policy direction.
As the world’s largest energy producer and consumer, China has been steadfast in its commitment to optimizing its energy consumption and enhancing efficiency. The new law explicitly includes “promoting the energy consumption revolution” as a legislative objective, underscoring the nation’s dedication to fostering a green, low-carbon consumption model.
Key institutional measures within the law, such as the minimum target share system for renewable energy consumption, the renewable electricity consumption guarantee mechanism, and the renewable electricity certification system—commonly known as the “green certificate”—aim to encourage both individuals and enterprises to prioritize clean energy usage. The legalization of the green certificate system provides authoritative recognition of the environmental benefits of renewable electricity, offering market incentives that drive the transition toward green energy.
These initiatives are poised to significantly restructure China’s energy consumption, promoting sustainable development and injecting fresh momentum into the country’s high-quality economic and social growth. By cultivating a model focused on green and low-carbon consumption, China is not only steering towards a more sustainable future but also setting an example on the global stage in tackling environmental challenges and advancing economic development through energy reform.
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China's new law boosts energy transition and economic development
cgtn.com
