A guideline to set up an efficient system promoting green energy consumption has been issued in China, with the goal of developing the renewable energy sector and the green electricity certificate (GEC) market.

The GEC is the only recognized credential required to produce and consume renewable energy electricity in China. It is issued to qualified renewable energy sources, with each certificate representing 1,000 kilowatt-hours of renewable energy generation. As a consumption credential, the certificate is utilized for accounting and certifying the consumption of renewable energy.

One of the guideline's goals is having a well-established trading system for the GEC market by 2027. This includes the development of essential systems for accounting, certification, and labeling of green electricity consumption. It aims to facilitate smoother integration of the certificate with other mechanisms, thereby unlocking the market's potential and promoting its international application.

By 2030, the guideline proposes further enhancements to the GEC market system, significantly increasing the demand for green electricity across society. The market is expected to operate efficiently and orderly, effectively realizing international applications of the GEC and reflecting the environmental value of green electricity. This will provide strong support for the high-quality development of renewable energy and contribute to a comprehensive green transformation of economic and social development.

A representative from the National Energy Administration (NEA) said that China has established a closed-loop management mechanism covering the entire lifecycle of issuing, trading, applying, and canceling the GEC.

The guideline also presents specific measures to boost the GEC market, targeting market supply, consumer demand, trading mechanisms, application scenarios, and international outreach of the certificate.

In addition, it calls for an increase in green power consumption among key industries such as steel, non-ferrous metals, construction materials, petrochemicals, and data centers, so as to stimulate demand for GEC.

Meanwhile, to improve the trading mechanism, the guideline stresses the need for establishing a sound pricing system for the GEC, enhancing price monitoring, and researching the establishment of a price index, guiding prices to operate at reasonable levels. The establishment of a unified national trading system for GECs and the enhancement of trading platforms are advocated.

According to the NEA, China issued 4.734 billion GECs in 2024, marking a 28.4-fold year-on-year increase.