On November 8, 2024, China took a significant step by passing its first-ever energy law to "promote carbon neutrality". Approved during the session of the Standing Committee of the National People's Congress, the new energy law will come into effect from January 1, 2025. 

Being the first energy law of China, the legislation is expected to have a transformative shift in the energy policy framework of the country and around the globe. Private equity/credit companies, asset managers, and impact investors should consider this new law to harness the full potential of new investment opportunities that may occur in the near future because of its shift. 

Let's explore the first energy law of China in detail. 

About the first energy law of China

The first energy law of the People's Republic of China is a set of rules aimed at achieving carbon neutrality and promoting sustainable investment in the country. Passed by the top legislative body of China, the law includes nine comprehensive chapters that cover a range of critical energy issues. The law encompasses many aspects of energy development, including planning, development, market structures, and emergency responses to facilitate a green and low-carbon economic transition, promote high-quality energy development, and bolster national energy security. 

Key aspects of the first energy of China

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  The new law's central objective is to facilitate the commitment of China to peak carbon emissions by 2030 and achieve the goal of net-zero emissions by 2060.

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  A lot of effort in law is put into encouraging both private and public sectors to invest in clean and renewable energy infrastructure such as solar, wind, and hydropower.

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  The new law aligns with China's constitutional framework to build a modern socialist economy. It aims to ensure resilience against climate-related concerns and effectively respond to evolving global energy demands.

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  By laying the foundation for major changes to energy policy and carbon reduction plans, the energy law of China will play a key role in upcoming international climate discussions, including COP29 in Azerbaijan. 

While you’re here…

Financial institutions, private equity and credit firms, asset managers, and impact investors should carefully consider the new law released by China, in their strategies and risk assessments to capitalize on opportunities and mitigate potential risks.

However, keeping up with government initiatives like this and assessing them accurately can be challenging. This is where Auquan comes into play. 

Auquan automates and streamlines deal sourcing, due diligence, monitoring, ESG/sustainability, and compliance workflows so teams can move faster and more efficiently. Using advanced AI, Auquan generates material and sustainability insights on any entity worldwide — public or private — fine-tuned for your team's investment and lending requirements.

Let's explore how Auquan can help you and your team eliminate tedious and time-consuming manual data work and focus more on what you do best.