China's first energy law takes effect

China's first energy law took effect on January 1. The law gives energy planning a legal structure for the first time, emphasizing its guiding role in national energy development.

The energy law aims to promote high-quality energy development, ensure national energy security, accelerate green transition, and support the country's efforts to achieve carbon peak and carbon neutrality goals.

The law also aims to support the development and utilization of renewable energy and increase the proportion of non-fossil energy consumption. It encourages individuals and businesses to adopt a green and low-carbon production attitude and lifestyle.

The law formally integrates hydrogen, previously classified as hazardous chemicals, into the energy management system.

"For the first time, hydrogen is recognized as energy under national law, clarifying its energy attribute and opening up chances to promote the development of the hydrogen energy business," said Wan Jinsong, deputy head of the National Energy Administration. "The law also defines the legal significance of Green Electricity Certificates and supports increased green electricity use throughout society."

Green Electricity Certificates (GEC) were piloted in 2017 to build a renewable electricity market-based mechanism. They are the sole way to validate renewable energy production and consumption.

According to official figures, China had issued 3.55 billion GECs by October, 2024. Wan says the energy law will promote the transformation of energy security.

"The energy law sets the order of importance for developing and using fossil fuels and green energy. It also makes it clearer which energy type is more important for development and use, and it makes it easier to switch to non-fossil energy in a safe, reliable, and orderly way," Wan added.

Additionally, the energy law introduces innovative measures such as energy production capacity reserves and mineral resource reserves. For the first time, it explicitly defines the corporate social responsibility reserve obligation to ensure energy security during extreme situations.

(Cover: CFP)