China Enacts Landmark Energy Law to Drive Carbon Neutrality by 2060

China has made a significant advance in its climate policy by passing its first-ever energy law, set to take effect on January 1, 2025. This comprehensive legislation marks a critical step in China’s plan to reach carbon neutrality by 2060, targeting an ambitious peak in carbon emissions before 2030. Approved by the Standing Committee of the National People’s Congress, the law introduces a structured approach to sustainable energy planning, development, and security.

The law spans nine chapters, covering diverse aspects of the energy sector, including development, market systems, reserves, and emergency response, as well as technological innovation and regulatory responsibilities. This framework is expected to guide China’s transition to a green, low-carbon economy while ensuring energy security, a priority in its broader strategy to modernize the nation’s economy.

A core component of the law is its commitment to reducing carbon emissions, aligning with China’s national goals and international climate responsibilities. By championing low-carbon and clean energy, the legislation highlights China’s ambition to balance its role as both a global industrial powerhouse and a leader in green energy initiatives. As the largest greenhouse gas emitter, China has also been ramping up its clean energy capacity, recently leading global efforts by constructing almost twice the wind and solar capacity of other countries combined.

The timing of China’s new energy law is crucial as climate change intensifies worldwide. The EU’s Copernicus climate monitor recently warned that 2024 could become the hottest year on record, surpassing the 1.5-degree Celsius mark above pre-industrial levels. In China, extreme weather events—like unprecedented heatwaves and severe flooding—have already impacted livelihoods, emphasizing the urgency for policy action.

This new legislation is expected to position China more firmly on the global stage as it prepares for future climate summits, including the upcoming COP29 in Azerbaijan.