China’s National People’s Congress has voted to pass the country’s first Energy Law, which will come into effect on 1 January 2025. The new law includes nine sections, covering general provisions, energy planning, energy development and utilisation, energy market system, energy reserves and emergency response, energy science and technology innovation, supervision and management, legal liabilities, and supplementary provisions.  

The law notably states that China will prioritise renewable energy development such as hydropower, wind energy, solar energy, biomass energy, geothermal energy, marine energy, and hydrogen energy, while encouraging a rational, clean, and efficient use of fossil fuels. It promotes a safe, reliable, orderly transition from fossil fuels to non-fossil alternatives, aiming to increase the proportion of non-fossil energy consumption. The law also establishes a framework to shift from controlling total energy consumption and energy intensity to dual control of total CO₂ emissions and CO₂ intensity, speeding up the formation of a carbon control system.

In addition, the law aims to accelerate the development of a new power system, enhancing the grid’s capacity to integrate, allocate, and regulate renewable energy. It also implements a green electricity certification system, encouraging consumers and public institutions to prioritise the procurement and use of renewable energy and energy-saving products and services.

The drafting of the Energy Law began in 2006, with multiple drafts released for public comment and three major revisions made before final approval. China plans to reach carbon neutrality by 2060.