On March 18, the National Development and Reform Commission (NDRC), along with four other government agencies, issued new guidelines to accelerate the development of the country’s Green Power Certificate (GEC) market.
Source: 21st Century Business Herald
On March 18, the National Development and Reform Commission (NDRC), along with four other government agencies, issued new guidelines to accelerate the development of the country’s Green Electrcity Certificate (GEC) market. The policy aims to address weak market demand and the undervaluation of green electricity by establishing a mechanism that combines both mandatory and voluntary green power consumption. It sets clear targets for 2027 and 2030 and outlines 17 concrete measures covering market supply, consumption demand, trading mechanisms, application scenarios, and international adoption.
According to the China Green Power Certificate Development Report (2024), published by the National Energy Administration (NEA), China had issued a total of 4.955 billion green certificates as of December 2024, with 3.379 billion available for trading. The GEC market grew significantly in 2024, with trading volume quadrupling to 446 million certificates. The number of participating businesses also surged to around 59,000—2.5 times higher than the previous year. However, Li Chuangjun, director of NEA’s Department of New Energy, pointed out that "the market continues to severely undervalue the environmental benefits of green electricity." Building on last year’s requirement for the electrolytic aluminum sector to meet specific green power consumption thresholds, China now plans to expand similar mandates to additional industries, with GECs playing a central role in verification.
The new guidelines call for a gradual increase in the proportion of green electricity used by major energy-consuming industries, including steel, nonferrous metals, building materials, petrochemicals, and chemicals, as well as data centers and other key power users. By 2030, these industries must ensure that their green electricity consumption is at least in line with the national average renewable energy obligation.
A notable development in the steel industry is the recent launch of the Electric Arc Furnace Steel Sub-Association under the China Iron and Steel Association on February 28. This marks a step toward a more standardized, specialized, and globally integrated electric arc furnace (EAF) steel sector. According to industry data, EAF steel accounted for just 10.5% of China’s total steel output in 2024—far below the global average of 28.4%—suggesting significant room for growth. With China’s scrap steel supply expected to expand rapidly and the development of a unified national power market accelerating, conditions are becoming increasingly favorable for a shift toward green electricity in the steel industry. Meanwhile, local governments are rolling out policies to support the adoption of "short-process" steelmaking, which is expected to further drive demand for renewable energy in the sector.
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