Energy Insider: China Accelerates Issuing Green Electricity Certificates, Heavy Emitters Face Inspections

This week’s Caixin energy wrap highlights significant developments in China’s climate and energy sectors, addressing policy changes, industrial performance, project launches, and regulatory updates. Key topics include a surge in Green Electricity Certificates (GECs), attention on heavy industry emissions, the launch of a carbon footprint platform, and tougher EV battery safety regulations. The following summary, organized by topic and marked with corresponding paragraph indicators, provides a detailed overview of each section from the original text.

Green Electricity Certificates Boom:

In 2024, China issued over 4.7 billion Green Electricity Certificates (GECs) — a staggering 28-fold increase compared to the previous year and representing more than 95% of all GECs ever granted in the country [para. 5]. A significant portion of these certificates were distributed among provinces with significant renewable resources, like hydropower-rich Yunnan and Sichuan, wind-power leader Inner Mongolia, and solar powerhouse Xinjiang [para. 6]. In terms of trading, 446 million GECs changed hands in 2024, nearly quadruple the previous year. Inner Mongolia was the largest seller, with Zhejiang the largest buyer [para. 7]. Growth continued into March 2024, with 174 million certificates issued in that month alone—nine times more than the same period last year [para. 8].

GECs are a core policy instrument designed to promote greater uptake of renewable power from China’s expanding wind and solar sectors. Each GEC equates to 1,000 kilowatt-hours of renewable energy purchased via the green power trading market, managed and verified monthly by the National Renewable Energy Information Management Center [para. 9][para. 10]. Moreover, Beijing has mandated that heavy industries, including steel and petrochemicals, incrementally raise the share of renewable electricity in their operations to further boost GEC trading volume [para. 11].

Heavy Industry Emissions Supervision:

China’s Ministry of Industry and Information Technology (MIIT) announced an intensified inspection regime for heavy emitters like steel, aluminum, cement, and lithium battery manufacturers. Assessments will occur by November 2024, focusing on absolute and per-unit energy consumption while comparing results against national standards [para. 13][para. 14]. Repeat underperformers risk penalties [para. 15].

This tightening comes as China struggles to meet its 14th Five-Year Plan (FYP) goals: reducing energy intensity by 13.5% and carbon intensity by 18% by 2025. As of the end of 2023, the nation had only realized 25% of these targets, leaving a daunting 75% reduction to be achieved in just two years, which experts consider nearly impossible given current growth in electricity demand [para. 16][para. 17][para. 18].

First Carbon Footprint Platform:

China launched its inaugural digital platform for carbon footprint management on April 16 in Nanjing [para. 20]. The platform integrates domestic and international data, enabling firms to model emissions throughout their products’ entire lifecycle—from raw materials to logistics. Nearly 1,000 companies in Jiangsu province have already adopted the platform [para. 22].

This initiative addresses global concerns that Chinese products are sometimes assumed to have higher emissions due to a lack of transparent measurement [para. 23]. China aims for a robust system to be fully operational by 2027, along with carbon footprint standards for 100 priority products [para. 24]. The platform is also expected to help reduce emissions throughout supply chains and encourage consumers to make low-carbon choices [para. 25].

Tougher EV Battery Regulations:

Starting mid-2025, Chinese regulations will require EV batteries to pass stricter safety protocols to reduce the risk of fires and explosions [para. 27]. This includes a new test for batteries after rapid charging—a key feature in the fiercely competitive EV sector [para. 28]. Complete battery packs will undergo 17 tests covering scenarios such as collisions and overheating [para. 29]. Compliance is mandatory for new models from June 2025 and all models by July 2027 [para. 30].

Incidents of EV fires, mostly traced to battery failures during charging, remain a widespread concern in China [para. 31]. Experts believe enhanced requirements will reassure consumers but could drive up costs for small and midsize producers, prompting a potential market shakeout [para. 32][para. 33].