China Sees Surge in Green Electricity and Certificate Trading Amid Carbon Reduction Goals

China Sees Surge in Green Electricity and Certificate Trading Amid Carbon Reduction Goals

Several regions in China reported a significant increase in green electricity and green certificate trading in the first half of 2024, reflecting the country's commitment to its dual carbon reduction targets.

Experts attribute this surge to heightened demand from both domestic and global enterprises to cut emissions, alongside supportive policies. Zhao Pengfei from Shanghai Power Exchange Center Company Ltd highlighted that the sharp rise in trading volume underscores the continuous improvement of relevant policies and mechanisms, as well as a growing corporate awareness for energy conservation and emission reduction.

Northwest China's Xinjiang Uygur Autonomous Region recorded 860 million kilowatt-hours (kWh) of green electricity traded in the first half of the year, a figure that is double the total for 2023. Additionally, electricity users in Xinjiang purchased over 1.44 million green certificates, a 3.5-fold increase compared to the same period last year.

In northeast China's Heilongjiang Province, the transaction volume of green electricity reached 741 million kWh, including 686 million kWh of wind power and 55 million kWh of photovoltaics, a 5.3-fold increase from the total volume in 2023. The province also saw the transaction of over 5.15 million green certificates in the first half of the year, surpassing the total volume of 2023 by 1.22 million.

Shanghai experienced a dramatic rise in green certificate transactions, with over 15 million certificates traded from January to early June, compared to 460,000 in 2023. Green electricity, which refers to electricity with zero or near-zero carbon dioxide emissions during production, is essential for companies aiming for carbon neutrality and for the overall transformation of the industry. Buyers receive a green certificate, representing 1,000 kWh of renewable energy, as proof of their green electricity consumption.

Zhang Da, an associate professor at Tsinghua University's Institute of Energy, Environment and Economy, emphasized that after China set its dual carbon goals, more companies began considering their social responsibilities. He noted that companies are encouraged to participate in green electricity trading to help achieve energy conservation and emission reduction targets set by the government.

Globally, multinationals aiming for carbon reduction targets urge their Chinese branches and supply chain companies to procure renewable energies. This trend boosts demand for renewable energy, providing financial support to the sector and facilitating China's efforts to reach its dual carbon goals of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060.

Green electricity and certificate trading not only enable enterprises to meet energy conservation and emission reduction targets but also promote renewable energy consumption, thereby supporting China's sustainability initiatives.