In a landmark move towards a sustainable future, China has enacted its first comprehensive energy law on November 8, 2024, signaling a strong commitment to green transformation and active participation in global energy governance. Set to take effect on January 1, 2025, the new law lays a solid legal foundation for China’s long-term energy strategy, aligning with its ambitious dual carbon goals and pursuit of high-quality development.
As the world’s largest energy consumer, China faces the pressing challenges of growing domestic energy demand and environmental concerns. The new energy law is a strategic response, designed to address these challenges while positioning China as a leader in the global shift towards renewable energy.
Globally, energy laws shape policy directions and address regional priorities. While the United States focuses on energy security and industrial competitiveness, and the European Union prioritizes climate action and green growth, China’s energy law stands apart with its broad institutional declaration and long-term orientation. This strategic foresight provides flexibility, allowing China to adapt its energy governance in a rapidly evolving landscape while maintaining a stable framework for long-term planning.
The law integrates multiple stakeholders, including government bodies, enterprises, regulators, and consumers. It provides a clear legal framework for governmental energy planning and oversight, mandating the central government to set sector-specific and regional energy development goals. Local governments are required to align their policies with national strategies, promoting clean energy projects and adjusting regional energy structures according to local conditions.
On the supply side, the law emphasizes the optimization of the energy structure. Coal is redefined as a foundational energy source, with a focus on efficiency and cleaner usage. The development of renewable energy continues to receive support through tax incentives, subsidies, and encouragement of innovation, with hydrogen energy included for the first time in China’s energy management system.
On the demand side, renewable energy consumption is actively promoted. Policies such as minimum consumption ratios for renewables and green power certificates incentivize enterprises and consumers to adopt clean energy. These measures aim to accelerate the green transformation from both supply and demand perspectives.
China’s enactment of the comprehensive energy law represents a pivotal step towards achieving its environmental goals and contributing to global energy governance. By establishing a flexible yet robust legal framework, China is positioning itself to lead in the green transition, balancing economic growth with environmental sustainability.
