On November 8, 2024, the National People’s Congress approved the “Energy Law” which will be the supreme law for energy management in China. The law will come into effect on January 1, 2025. The drafting of the Energy Law began in 2006, and it took nearly 20 years for the final version to be promulgated. Together with the current “Renewable Energy Law” and “Energy Conservation Law”, it will form the legal system for energy management in China. The Law emphasizes the promotion and utilization of non-fossil energy development such as renewable energy, and the promotion of clean and efficient utilization of fossil energy. It also stipulates the establishment and implementation of the minimum proportion target of renewable energy in energy consumption and sets out requirements for energy users.
Outline of Energy Law
The Energy Law consists of the following nine chapters:
Chapter 1: General provisions
Chapter 2: Energy planning
Chapter 3: Energy development and utilization
Chapter 4: Energy market system
Chapter 5: Energy reserves and emergency response
Chapter 6: Science and technology innovation of energy
Chapter 7: Supervision and management
Chapter 8: Legal liability
Chapter 9: Supplementary provisions
Aim of the law
The Law is formulated in accordance with the Constitution to promote the energy development in high-quality, ensure national energy security, promote green and low-carbon transformation and sustainable development of the economy and society, actively promote carbon peak and carbon neutrality (Article 1).
Promote the development and utilization of renewable energy
The law stipulates the following measures to promote the development and utilization of renewable energy:
- The State shall give priority to the development and utilization of renewable energy, and promote the substitution of fossil energy by non-fossil energy, and increase the proportion of non-fossil energy consumption (Article 22).
- The State’s competent administrative department for energy shall, in cooperation with other relevant departments, formulate and organize the implementation of the minimum targets for the consumption of renewable energy (Article 23).
- The State shall promote the development and utilization of wind and solar energy, encourage the development and utilization of biomass energy, actively develop nuclear power generation in a safe and orderly manner, and actively promote the development and utilization of hydrogen energy (Articles 25, 26, 27 and 33).
- The State will establish a mechanism to promote green energy consumption by implementing systems such as the Green Electricity Certificate (GEC) for renewable energy and encourage energy users to give priority to the use of clean, low-carbon energy such as renewable energy (Article 34).
Requirements for energy users
The following requirements have been set for energy users. However, the relevant laws and regulations have not yet been enacted, they are expected to be enacted and promulgated in stages.
- Install and use measuring equipment for energy consumption and carbon emissions in accordance with relevant national regulations (Article 35).
- Use energy in accordance with safe use standards and energy conversion regulations to fulfill the energy conversion obligations (Article 35).
- Expand green energy consumption and consciously practice green and low-carbon production and lifestyles (Article 35).
- Large energy users shall develop their own energy emergency plans in accordance with national regulations (Article 53).
The original text of the Energy Law is available at the following URL (in simplified Chinese).
https://www.nea.gov.cn/2024-11/09/c_1310787187.htm