Energy Insider: Beijing Sets 2025 Green Transition Tasks, Approves New Voluntary Carbon Credits

In the latest Caixin energy wrap, significant developments have been reported in China's energy and climate sectors. Among the highlights are China approving new China Certified Emission Reduction (CCER) credits, Saudi Arabia emerging as a leader in turbine exports, Beijing outlining dual-carbon tasks for 2025, and the discovery of a substantial lithium mine in Sichuan.

[para. 1] China has restarted its voluntary carbon credits program, issuing new credits under the CCER scheme. This marks the first issuance since 2024, after an eight-year hiatus due to regulatory concerns and low participation. Approximately 9.5 million tons of new credits have been introduced, predominantly from offshore wind farms and solar thermal power plants. The initial trades of these credits averaged 80.45 yuan ($11.06) per ton. The revival of CCER is seen as a step towards strengthening China's carbon market alongside the national Emissions Trading Scheme (ETS). These efforts are anticipated to boost the country's burgeoning carbon market and carbon financing sector, although industry experts note that further improvements in trading regulation and global recognition are necessary.

[para. 2] The Chinese government is expediting its transition towards a green economy, setting 2025 as a milestone year for several dual-carbon tasks. These plans were outlined in a government report delivered by Premier Li Qiang. Key initiatives include enhancing policy support for green growth, implementing pilot projects, and promoting green buildings. The government aims to address "green trade barriers" by developing systems for emissions calculation, product labeling, and investment in desert-based renewable energy projects and offshore wind farms. This forms part of Beijing's wider strategy for boosting renewable energy use and establishing zero-carbon industrial zones.

[para. 3] Saudi Arabia has become the largest overseas market for Chinese wind turbines, surpassing Uzbekistan, according to the Chinese Wind Energy Association (CWEA). Chinese manufacturers exported 5.19 gigawatts (GW) of wind turbines in 2024, marking a 42% increase compared to the previous year. A significant portion of these exports went to countries involved in the Belt and Road Initiative, with Saudi Arabia accounting for 15% of the total. The surge in exports highlights the ongoing search by Chinese energy firms for new markets, especially due to fierce domestic competition and strained trade relationships with the U.S. and Europe. Despite geopolitical challenges, Chinese companies plan to leverage cost advantages to expand their global market presence in 2025.

[para. 4] In Sichuan, a massive lithium mine has been discovered, containing over 1.1 million tons of lithium oxide reserves. This discovery could significantly reduce China's dependency on imported lithium, a crucial component in electric vehicle (EV) batteries. Sichuan, which hosts the majority of China's lithium ore reserves, is positioned as a major player in the lithium supply chain, with cities like Yibin recognized as lithium battery hubs. The Ministry of Natural Resources reported that recent discoveries have propelled China from sixth to second place globally in terms of lithium reserves, emphasizing the country's strategic focus on harnessing domestic mineral resources.

These developments reflect China's strategic emphasis on advancing its clean energy capabilities, reducing dependency on imports, and strengthening its position in the global energy market.