Report on China’s Renewable Energy Law

Abstract The Renewable Energy Law of the Peoples’ Republic of China came into effect on 1 January 2006 – a significant milestone not only for China, but for renewable energy industries in countries around the world. The Chinese renewable energy market represents a significant opportunity for both Chinese and Australian businesses, given the enormous energy demand increases expected within China in the coming decades, and the leading renewable energy technologies that have been developed in Australia over the past decade. The Renewable Energy Law is an essential platform for diversifying China’s energy mix. Australian industry, as a leader in a number of renewable energy technologies, is well placed to help China meet the additional demand for renewable energy as established by the Renewable Energy Law and the subsidiary regulations and regional initiatives that put this law into action.  The Renewable Energy Law itself is a brief umbrella document, which provides the provincial governments with a mandate to develop renewable energy feed in tariffs and quotas for the purchase of renewable energy within their locality. As part of RE Law Assist, a report was prepared in June 2007 which examined the Renewable Energy Law, and its impact on both China and Australian businesses. This report found that the Renewable Energy Law was an essential platform for diversifying China’s energy mix, but that its nature as a framework meant that government regulations and implementing provincial legislation would play a crucial role in the development of China’s renewable energy industry.  China’s National Development and Reform Commission carried out the first official Government review of the Renewable Energy Law in early 2007. The results of the review, including recommendations from Chinese industry stakeholders, were published on 20 April 2007 and were reviewed in the June 2007 Report. However, the June 2007 Report was published too early to consider the NDRC’s Medium and Long-Term Development Plan for Renewable Energy in China. In addition, a host of new environmentally-focussed law and policy has been proposed and/or passed by the Chinese Government.
Author Baker & McKenzie and the Chinese Renewable Energy Industry Association, APP Project REDG -06-09, May 2009
6 Renewable Energy, 6.1.2 Government, Industry, International Policy and International Financial Institutions