China's first energy law, which took effect on Jan 1, marks a milestone in the country's energy transition. It signifies the establishment of a foundational legal framework for the energy sector with the energy law as its cornerstone, supported by specific laws such as the electricity law, coal law, renewable energy law and energy conservation law, alongside administrative regulations.
Furthermore, the energy law elevates crucial measures for promoting the energy sector's "four revolutions and one cooperation" strategy from 2014 into law, acknowledging the strategy's decade-long efficacy.
The "four revolutions" cover curbing unreasonable energy consumption; establishing a diversified supply system; promoting the energy technology revolution to drive industrial upgrades; and promoting the energy system revolution to facilitate fast-track energy development.
The "one cooperation" refers to comprehensively enhancing international cooperation.
The energy law is an institutional guarantee to further drive energy transition, and is a crucial means of support for achieving the goals of peaking carbon emissions before 2030 and carbon neutrality before 2060.
The energy law delineates clear objectives and responsibilities for the energy sector's green development. It focuses on three critical mechanisms, with the first being establishing a dual control mechanism for total carbon emissions and emission intensity. Second, energy regulatory authorities should take the lead in formulating medium to long-term goals for non-fossil energy development and utilization, with annual monitoring and public disclosure of implementation progress. Third, energy regulatory authorities should be at the forefront in setting the minimum proportion of renewable energy in total energy consumption, and ensuring that power supply companies, electricity suppliers and electricity users fulfill their responsibilities for consuming power generated from renewable sources.
Additionally, it outlines policy directions for the development and utilization of various renewable energy types. Considering the broader context of energy resource availability, economic and social progress, as well as environmental preservation, the law precisely outlines the criteria for harnessing a range of renewable energy resources like hydro, wind, solar, biomass, and geothermal energy. Notably, it explicitly endorses the decentralized development and use of wind and solar power, setting a legal framework for novel initiatives such as decentralized power trade and microgrid systems.