Beijing, China — After an extensive legislative process that began over a decade and a half ago, China’s comprehensive Energy Law was finally ratified on November 8, 2024. Initially drafted by the Office of the National Energy Leading Group in 2007 and undergoing multiple revisions, the law seeks to address and consolidate regulations across various energy sectors, signifying a major step towards achieving the country’s ambitious energy and environmental goals.
China’s journey towards a sustainable energy policy gained significant momentum as the National Energy Administration (NEA) welcomed public feedback on an early draft in 2020. This preparatory phase set the stage for rigorous reviews by the NPC Standing Committee in April and September 2024, culminating in its eventual passage.
The law marks a departure from previous legislation that typically focused on specific energy subsectors, such as coal, oil, and renewable energy. Instead, it envelops the entire energy landscape within a single, cohesive framework, indicating a more strategic approach toward the nation’s critical energy issues, including the regulation of burgeoning sectors like hydrogen energy.
This legislative move is closely intertwined with China’s high-stakes "dual carbon" objectives, which were made public by President Xi Jinping at the United Nations General Assembly in 2020. The goals—to peak carbon emissions before 2030 and achieve carbon neutrality by 2060—are ambitious, pushing for a swift transition from reliance on fossil fuels to a more diversified energy mix centered around renewable sources.
The new Energy Law emphasizes this shift by stipulating comprehensive development strategies for alternative energy sources including wind, solar, and hydrogen—once considered a hazardous chemical, now reclassified as a crucial energy resource. Provisions within the law highlight the establishment of long-term renewable energy targets and encourage the rapid build-out of necessary infrastructure to support their integration into China’s energy grid.
Under this legislative framework, the state is tasked with promoting scientific innovation and technological advances in the renewable sector. Additionally, the law mandates a minimum threshold for the proportion of renewable energy in total energy consumption, striving to spur widespread adoption through incentives like green electricity certificates.
Despite a robust commitment to renewables, the law does not overlook the current significance of fossil fuels in China’s energy matrix. It emphasizes the "reasonable" development and use of coal, oil, and natural gas to ensure energy security and economic stability. This is particularly crucial for China, a global leader in coal consumption and a significant oil importer.
Within the law, there is also an acknowledgment of the geopolitical landscape that affects energy security. China, feeling the pinch of restrictive trade measures, particularly from the United States, has incorporated provisions that could allow retaliatory actions against discriminatory energy policies from other nations.
While the law establishes a bold framework for a greener future, it also recognizes the ongoing role of fossil fuels, balancing environmental objectives with the imperative of national security and economic needs. This nuanced approach reflects the complex challenges China faces as it strides toward energy self-reliance amidst fluctuating global conditions.
The enactment of China’s comprehensive Energy Law is a pivotal moment not just for the nation’s policy makers and industry stakeholders, but for the global community, reinforcing China’s role as a key player in the world’s future energy landscape.
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