China Enacts First Energy Law Effective January 2025 Toward 2060 Neutrality

China enacted its first energy law, effective January 1, 2025, covering energy planning, development, market structures and emergency response to support carbon neutrality by 2060. The legislation strengthens the policy framework of the world's largest emitter and leading clean-energy manufacturer, with implications for global energy markets including India.

China enacted its first energy law, taking effect January 1, 2025, marking a major advance toward carbon neutrality by 2060. Adopted by the Standing Committee of the National People's Congress, the legislation spans nine chapters addressing energy planning, development, market structures, emergency response, technological innovation, supervision and legal responsibilities. Developed in line with China's Constitution, the law aims to enhance high-quality energy development, strengthen national energy security and support a green, low-carbon economic transition, forming a core component of China's strategy to peak carbon emissions by 2030.

The law affects China's entire energy sector and reinforces its dual global role as the largest greenhouse gas emitter and a key clean-energy innovator. The country's renewable energy capacity in wind and solar is nearly double that of all other nations combined. State media outlet Xinhua highlighted the law's role in fostering sustainable growth and building a modern socialist economy. The framework positions China to take an active role in international climate discussions, including COP29 in Azerbaijan, while pursuing significant energy reforms.

Energy market participants and policymakers should monitor implementation of the law's nine chapters from January 1, 2025, as it shapes China's progress toward peaking emissions before 2030 and neutrality by 2060. Stakeholders should track how the legislation addresses energy security and the low-carbon transition amid extreme weather, including heatwaves and severe flooding, that the law aims to build resilience against. The framework's influence on global clean-energy supply chains warrants attention given China's dominant renewable manufacturing capacity.

Key figure — Effective date: January 1, 2025, targeting carbon neutrality by 2060