Review of China’s Energy Law and Its Impact on China’s Future Energy Development

Abstract

In order to achieve the goals of carbon peaking and carbon neutrality, China has enacted the Energy Law. This fundamental law defines energy for the first time, systematically builds an institutional framework covering development and utilization, strategic planning, reserves and emergency response, and innovatively proposes policy tools such as a dual-control mechanism for the total volume and intensity of carbon emissions, and green power certificates for renewable energy sources, with the aim of reshaping the system of energy supply and demand, as well as the structure of the market. Some of the law's shortcomings include: the broad content of the provisions makes it difficult to implement; there is no provision for the convergence of energy technology standards; and there is a lack of clarity in the division of powers and responsibilities between regulators. As the world's largest energy consumer, China's legislative practices will have a profound impact on the international energy landscape. At present, the energy industry is in a window of transformation and upgrading, the supply and demand system is facing systemic changes, and local enterprises are accelerating their participation in the international market competition, and competing for the right to speak in the industry through technological output and standardization. In the process of implementing the Energy Law, we must simultaneously amend the Renewable Energy Law of the People's Republic of China, the Energy Conservation Law of the People's Republic of China and the Coal Law of the People's Republic of China, and formulate more detailed and practical rules and regulations, which is an urgent task. Energy enterprises should enhance their digitalization and innovation capabilities, while foreign governments and companies should closely monitor China’s strategies for international energy cooperation and competition as outlined in the Energy Law.