欧盟企业在中国建议书（2024-2025）能源工作组（英文）

Europeanchamber中国欧盟商会

EnergyWorkingGroup

KeyRecommendations

1.FacilitateAccesstoRenewableEnergyinOrdertoAccelerateboththeEnergy

TransitionandIndustrialDecarbonisation

1.1FacilitateCorporateGreenEnergyProcurementandEnsureClearPoliciesforthe

DevelopmentofGreenElectricityCertificates(GECs)

SectionThree:Goods

•Advancethetransitionofgreenpowermarketsfrompilotrunstofulloperationsonanationalscopewithunifiedrules,expandoperationalcoverage(e.g.,todistributedrenewableenergy,biomassenergyetc.),improvetheimbalancebetweenthesupplyanddemandofrenewableenergy,facilitateinter-provincialtransactions,buildmoreultra-high-voltagetransmissionlinesforrenewableenergyfromnorthwest/southwestChinatotheeastChinaregion,andencouragetheprocurementoflong-termpowerpurchaseagreements(PPAs).

•Optimisedispatchingplanningofexistingultra-high-voltagelinestosetasidelong-termreservedcapacityforinter-provincialgreenpowertrading.

•Refinetransactionrulestoincreaseaccesstoandpolicytransparencyforrenewableenergyprocurement,especiallyforforeign-investedenterprises(FIEs).

•Facilitatecross-provincialgreenelectricitypurchasesandallowforpropermarketpricingandriskhedgingbyestablishingtoolssuchasalong-termelectricitymarket,long-termbilateralPPAs,virtualPPAsandanelectricityfuturesmarket.

•RegularlypublishemissionsandelectricitymarketinformationineveryprovincetoenhancepricingmechanismsforPPAsandenergysourcing.

•Incentiviseandrewardcompaniespurchasinggreenelectricitybygivingthempriorityduringpeakseasonandreducingtheenergyquotaneededwhenconsumingrenewableenergy.

•Improvesynergies,enhancetransparencyandpolicycontinuityamongexistingpolicyandmarketmechanismssuchasPPAs,GECs,provincialrenewableportfoliostandardsandthecarbonmarket.

•Clarifythepoliciesaboutthepossibledeductionofrenewableenergy/GECsfromtheprovincialenergyquotas.

•ClarifytheapplicationrulesofChinaCertificatedEmissionReduction(CCER)andGECsinlocalandnationalemissiontradingsystems(ETSs),toestablishthelinkagewhileavoidingtheriskofdouble-counting.

•Provideclarityonthefutureoutlookofrenewableportfoliostandardsforbothprovincesandcompanies.

•RaiseinternationalawarenessandunderstandingofChina’srenewableenergycertificatestofacilitateglobalrecognitionofmultinationalcorporations’(MNCs’)low-carbonsupplychain

measures.

1.2AcceleratetheConstructionofaHigh-qualityNewEnergySystemandEnsureEuropean

CompaniesHaveEqualAccesstoRenewableEnergyInvestmentOpportunities

•EnsurealevelplayingfieldforFIEsandSino-foreignjointventuressothattheyhaveanequal

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opportunitytoaccessrenewableenergyprojects.

•DefineFIEsasentitiesoriginallyheadquarteredoverseas,ratherthanforeignsubsidiariesofdomesticcompanies,toincreasemarketcompetitionandensuretransparencyandfairness.

•Allowmoreflexibilityonthechangeofshareholdingofrenewableenergyassetsbeforethecommercialoperationdateandrefinerelevantregulationstodifferentiatebetweenspeculationandlegitimatemarketactivities.

•Enhancethetransparencyofrenewableenergyassetallocationschemesandacceleratetheintegrationofrenewableenergyintothegrid.

•Streamlinepoliciesandprocessesforoffshoreprojectsandclarifytheapprovalsprocesstoexpeditethedevelopmentofdeep-seaandfar-seaprojects.

•EstablishSino-Europeanpilotdemonstrationprojects,especiallyinoffshorehydrogen,methanol,ammoniaandrecyclingtechnologies,inordertofostertechnologicalinnovationandknowledgeexchange.

•Optimisethealignmentandintegrationofrenewableenergyandnewenergytechnologieswithinternationaltechnicalstandards.

SectionThree:Goods

2.PromoteLowerCarbonEnergyVectorswithaFocusonboththeEnergy

TransitionandEnergySecurity

2.1PromoteNaturalGasandBiogasDevelopmentandAccelerateDecarbonisation

ofCoal-basedIndustries

•Acceleratereformofgasinfrastructureregulations:Improvedownstreamcompetitionbygivingsmallercompaniesfairandopenaccesstosupplyandallowingcitygascompaniesandindustrialcompaniestosourcedirectlyfromgasproducers.

•Developundergroundgasstorageinamarketsystemwithanindependentcommercialperformanceindex.

•Encourageliquefiednaturalgas(LNG)bunkeringbysettingupnationalstandardsinlinewithinternationalstandards.

•Fostermarkettransparencythroughtheearlyreleaseofregulationsoninformationsharingandmonitoringmechanisms.

•Increasetheshareofgasandchemicalsproducedthroughbiomethaneandbiogasproductionviaanincentivemechanismforindustrialusers.

•Introduceabiomethanequotaforthenaturalgassector(producer/trader/networkoperator/citygascompanyetc.).

•Promotethedevelopmentofbiogasandbiomethanefromcityandagriculturalwaste,andimplementthepolluter-paysprincipletosupportwastecollection,treatmentandconsumption.

•Supporttheinjectionofbiomethaneinnaturalgaspipeinfrastructure.

•SetupanationalcertificateschemeforbiomethanebasedonthemodelofGECsandsupportitsrecognitionbyinternationalcertificationbodies.

•Proposeaclearbookkeepingsystemforbiomethanecertificatestoensureboththeirindustrialuseandtheircompatibilitywithinternationalstandards,suchasInternationalSustainabilityandCarbonCertification(ISCC).

•Promotethedevelopmentofcarboncaptureutilisationandstorage(CCUS)forcoal-basedpowergeneration,coal-basedindustriesandotherhard-to-abatesectors.

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Europeanchamber中国欧盟商会

•AdapttheregulatoryframeworktosupportreductionofemissionsusingCCUS,favouringthecaptureandallowingthelong-termunderground/underseastorageofcarbondioxide(CO2).

•DevelopjointtechnologicalandinnovationprogrammeswiththeEuropeanUnion(EU)tosupporttheacceleratedintegrationofbiogasandCCUSinChina.

2.2OptimisetheHydrogenSupplyChainandIncreasetheUseofLow-carbon

HydrogenSolutions

•Releaselong-termsupportingpoliciesforoptimisingthewholehydrogenvaluechain.

•Incentivisetheproductionoflow-carbonhydrogen.

•Supporttheproductionoflow-carbonhydrogenoutsideofchemicalparks.

•Bringdomesticcarbonfootprintofproducts(CFP)certificationbyChinaHydrogenAllianceintolinewithinternationalstandards.

•Reinforcemechanismstoincentivisetheuseofhydrogenelectrolyserspoweredbycurtailedelectricityproducedfromlow-carbonorrenewablesourcesofenergy.

SectionThree:Goods

•Defineclearsafetyregulationstobeharmonisedatthenationallevelforhydrogenproduction,distribution,storageandusage,andimplementtheminitiallyindedicatedparkstominimisepotentialconsequences.

•Promotemedium-andlong-distancehydrogentransportationusingdifferentmethods,includingpipelines,railand/orshipping.

•Providetangibleupdatesforonboardliquidstoragemechanismsfollowingtheregulationsforproducingandtransportinghydrogeninliquidform.

•Promotehydrogenusageforpowergeneration,heatinganddecarbonisinghigh-emissionindustries,includingbysupportingcarboncaptureandutilisation(CCU)projects.

2.3EnhancetheTransitionoftheTransportationSectorwiththeDevelopmentof

AlternativeFuels

•ClosethepricegapbetweenfossilfuelsanddecarbonisedalternativesbyimplementingtheGreenBalanceMechanism(GBM)basedonInternationalMaritimeOrganization(IMO)recommendations.

•Supportthedevelopmentofnewrefuellinginfrastructureforgreenmethanolandbiomethanearoundmajorports.

•Encouragemaritimeplayerstosynergisetheireffortstolowerthecostsoftheenergytransitionofthetransportationsector.

•Introduceareviewmechanismtosupporttheentirevaluechainforgreenmethanol,fromrenewableandbiogenicCO2production,hydrogenandmethanolconversion,toitstransportationtomajorports.

•Considerbecomingakeyexporteroflowcarbonmethanolfuelandalignwithinternationalstandards.

•Workwithothercountriesintheregiontoimplementgreencorridors.

•Coordinateregionaldevelopmentswithprovincesthathavesufficientaccesstorenewablepowerandbiomass,orprovincescapableofsupportingbunkeringandexporting.

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3.TransformPowerSystemsandBoostInnovationinEnergyEfficiencyTechnologies3.1DevelopHigh-qualityPowerInfrastructureandLeverageSmartDigital

Solutions

•Setupnewpowerinfrastructurethatcanintegratewithtraditionalfacilitiestomakethelarge-scaleutilisationofrenewablesfeasible.

•Acceleratetheapplicationofdigitaltechnologyandsmartpowerinstallationsfromboththedistribution-anddemand-side.

•Developpoliciesthatincentivisewidedeploymentofdecentralisedpowergeneration,andfacilitatebothmicrogridpenetrationandtheuseofenergystorage.

•Promotegreenpowergridproductssuchassulphurhexafluoride(SF6)-freeswitchgears.

•Developsmartenergymanagementplatformsandsoftwaretostabiliseandbalancetheload,andlowerenergycostsandconsumption.

•Encouragethedevelopmentandintegrationofsource-grid-load-storage,toincreaselocalconsumptionofrenewableenergy.

3.2BoostInnovationinEnergyEfficiencyTechnologies

SectionThree:Goods

•Leveragedigitalisationintheindustrialsectortoimplementdata-drivensolutionsforimprovingenergyefficiency.

•Expandthescopeofthenationalreal-timeenergyconsumptionmonitoringplatformtoincludemorekeyenergy-intensiveenterprisesandindustries.

•Acceleratetheestablishmentofacarbonemissionsstatisticalaccountingsystem,aswellascarbonmanagementsystems,toensuretheeffectiveoperationofthedualcontrolmechanism.

•FurtherexpandthenationalETStoincludemoreenergy-intensiveindustries.

•Encouragemorepracticalinternationalcollaborationonenergyefficiencyinnovationbetweengovernmentsandcompanies.

•PromotethereplacementofinefficienttechnologieswiththermalpowertechnologyandinstallCCUSfacilities.

•Implementgreenenergypolicieslocallyinasimpleandeffectivemanner.

•Continuetoraiseminimumenergyperformancestandards(MEPSs)toencouragehigherenergyefficiencyandstrengthenglobalcollaboration.

•Strengthengreenfinancesupportforenergyefficiencyprojects.

•Promotethedevelopmentandimplementationofdistrictenergysystems.

RecentDevelopments

TheGuidingOpinionsonEnergyWork(Opinions),publishedbytheNationalEnergyAdministration(NEA),1outlinesomeofthekeyresultsfromChina’sfocusonensuringenergysecuritythroughout2023.AccordingtotheOpinions,totalenergyproductionincreasedsteadily,andnomajorpoweroutagesoccurreddespitedroughts,heatwavesandotherextremeweatherconditions.

1GuidingOpinionsonEnergyWork,NEA,18thMarch2024,viewed6thMay2024,<

/2024-03/18/c_1310768578.htm

>

Naturalgasproductionincreased:China’stotalinstalledpowergenerationcapacityreachedapproximately2.92terawatts(TW),2andtotalpowergenerationcapacityreachedabout9,220terawatt-hours(TWh).3PlansfortheoveralldecarbonisationofChina’selectricitysystem

22023StatisticalDataoftheNationalPowerIndustryReleased,NEA,26thJanuary2024,viewed7thMay2024,<

/2024-01/26/c_1310762246.

htm

>

3DomesticElectricityConsumptionGrowthIncreasedin2023,andElectricityConsumptioninEmergingIndustriesMaintainedGrowthMomentum,StateCouncil,27thMarch2024,viewed7thMay2024,<

/yaowen/

liebiao/202403/content_6941779.htm

>

EnergyWorkingGroup219

SectionThree:Goods

Europeanchamber中国欧盟商会

continued,withtheproportionoftheinstalledcapacityofnon-fossilenergypowergenerationincreasingtoabout55percent.Intermsofactualutilisationofrenewableenergy,windandsolarpoweraccountedformorethan17percentofthecountry’spowergeneration,withrecord-highsolarandwindinstallationsofanadditional240gigawatts(GW)and70GW,respectively.

Theworkinggrouphopesthatnewpoliciesforemissionscontrol—includingtheremovalofnon-fossilenergypowerfromtheenergyquota,andtherelaunchoftheChinaCertifiedEmissionReduction(CCER)programme—whichwerepublishedin2023andearly2024,willplayasignificantroleinachievingemissionsreductions.

However,whilethedeploymentofrenewableenergyandnaturalgasisprogressinginChina,barrierstothebroaderimplementationoftheenergysector’sdecarbonisationstrategiesremain.TheseincludelimitedaccesstogreenpowerandGreenElectricityCertificates(GECs),especiallyinlargepower-consumingprovinces/areas;unclearpoliciesandregulatoryhurdles(includingalackofcommonstandards)toenablefurtherdeploymentofnaturalgas,biomethane,carboncaptureutilisationandstorage(CCUS)technologies,hydrogenandnewgreenfuels;andineffectiveimplementationofnewtechnologies,includingenergyefficiencytechnologies.

KeyRecommendations

1.FacilitateAccesstoRenewableEnergy

inOrdertoAccelerateboththeEnergyTransitionandIndustrialDecarbonisation

1.1FacilitateCorporateGreenEnergyProcurement

andEnsureClearPoliciesfortheDevelopmentofGECs

Concern

Marketaccessforgreenelectricity,bundledwithGECs,islimiteddespitetherapiddevelopmentofrenewableresourcesinChina.

Assessment

ProcuringgreenelectricitybundledwithGECsislimitedinscaleespeciallyformostlargeEuropeanmanufacturersinChinathatneedtodirectlypurchasegreenenergytoachievetheirdecarbonisationgoals.Someprovinces

220EnergyWorkingGroup

evenpreventmanufacturersfrompurchasinganyrenewableenergyorrestrictaccesstocertainsources,withmostreservedforresidentialandagriculturaluse.Aneffectivewaytoaddressthiswouldbethroughthefurtherpromotionofinter-provincialtransactions.

ItisinthiscontextthattheGuidingOpinionsonAcceleratingtheConstructionofaNationalUnifiedElectricityMarketSystem(GuidingOpinions)wasreleasedbytheNationalDevelopmentandReformCommission(NDRC)andtheNEAin2022,4withtheaimofunifyingChina’spowersystemintosub-regionalandnationalmarkets.TheGuidingOpinionscontainacallforincreasedaccesstogreenpowerinmajorpower-consumingareas,suchaseastandnortheastChina,whichcanbenefitfromthedevelopmentofrenewableenergy‘megabasins’,suchasXinjiang,GansuandInnerMongolia.Then,in2023,theNDRCandNEAreleasedanoticecallingforthefurtheraccelerationoftheestablishmentofaregionalspotpowermarket:5provincialspotpowermarketsthathaveoperatedforatrialperiodforalongtimeareencouragedtoproceedtofulloperationsaccordingly,withotherprovincialmarketsexpectedtoenhancetheirspotmarketdesignsandprepareforlongertrials.Whiletheseareencouragingdevelopments,twoissuesneedtobeaddressed:China’swest-eastelectricitytransferprojectiscurrentlylimitedbytransmissionlinecapacity,andwesternprovincesneedtofirstsatisfytheirownrenewableportfoliostandardsbeforedeliveringtoeasterncities.

Inordertoprovideguaranteedrevenuestreamsforinvestorsinsuchprojects,theworkinggrouprecommendsimplementinglong-termpowerpurchaseagreements(PPAs),whilealsolinkingexistingmechanisms—suchasdirectPPAs,GECs,renewableportfoliostandardsandtheemissionstradingscheme(ETS)—toavoiddoublecounting.Establishingtoolssuchaslong-termbilateralPPAsandanelectricityfuturesmarketwouldalsoallowforpropermarketpricingandriskhedging.Meanwhile,improvingmarketaccessandpolicytransparencywouldgiveinternationalcompaniesconfidencethattheycanachievetheirrenewableconsumptionpledges.Tofacilitatethis,transaction

4GuidingOpinionsonAcceleratingtheConstructionofaNationalUnifiedElectricityMarketSystem,NDRCandNEA,18thJanuary2022,viewed6thMay2024,<

/web/iteminfo.jsp?id=18646

>

5NoticeonFurtherAcceleratingtheConstructionofanElectricitySpotPowerMarket,NDRCandNEA,12thOctober2023,viewed6thMay2024,<

https://www.

/zhengce/zhengceku/202311/content_6913560.htm

>

rulesshouldberefinedwithregularupdates,suchasdisclosuresoftradingvolumesandindustrysectorsthatareeligibleforbulktrades.Tradingactivitiescouldalsobefacilitatedbyreleasingmarketprices,averagetransactionvolumesandemissionsdatamorepromptly.

Asafinalpoint,clarificationisneededonthelinkbetweenGECs,thedualenergyandemissionscontrolmechanisms,6theETSandtheCCERprogramme,whilemaintainingthequalityofthecertificates.

Recommendations

•Advancethetransitionofgreenpowermarketsfrompilotrunstofulloperationsonanationalscopewithunifiedrules,expandoperationalcoverage(e.g.,todistributedrenewableenergy,biomassenergyetc.),improvetheimbalancebetweenthesupplyanddemandofrenewableenergy,facilitateinter-provincialtransactions,buildmoreultra-high-voltagetransmissionlinesforrenewableenergyfromnorthwest/southwestChinatotheeastChinaregion,andencouragetheprocurementoflong-termPPAs.

•Optimisedispatchplanningofexistingultra-high-voltagelinestosetasidelong-termreservedcapacityforinter-provincialgreenpowertrading.

•Refinetransactionrulestoincreaseaccesstoandpolicytransparencyforrenewableenergyprocurement,especiallyforFIEs.

•Facilitatecross-provincialgreenelectricitypurchasesandallowforpropermarketpricingandriskhedgingbyestablishingtoolssuchasalong-termelectricitymarket,long-termbilateralPPAs,virtualPPAsandanelectricityfuturesmarket.

•RegularlypublishemissionsandelectricitymarketinformationineveryprovincetoenhancepricingmechanismsforPPAsandenergysourcing.

•Incentiviseandrewardcompaniespurchasinggreenelectricitybygivingthempriorityduringpeakseasonandreducingtheenergyquotaneededwhenconsumingrenewableenergy.

•Improvesynergies,enhancetransparencyandpolicycontinuityamongexistingpolicyandmarketmechanismssuchasPPAs,GECs,provincialrenewableportfoliostandardsandthecarbonmarket.

6The“dualcontrolofenergyconsumption”mechanismreferstothepolicyofcontrollingtotalenergyconsumptionandenergyintensityofregions,industries,andcompanies,whilethe“dualcontrolofcarbonemissions”mechanismfocussesoncontrollingtotalcarbonemissionsandcarbonemissionsintensity.Huld,A,China’sPivotfromEnergyConsumptiontoCarbonEmissionsControls:ImpactonCompanies,ChinaBriefing,5thOctober2023,viewed11thJune2024,<

/news/china-carbon-emissions-reduction-dual-

control-explained/

>

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•Clarifythepoliciesaboutthepossibledeductionofrenewableenergy/GECsfromtheprovincialenergyquotas.

•ClarifytheapplicationrulesofCCERandGECsinlocalandnationalETSs,toestablishthelinkagewhileavoidingtheriskofdouble-counting.

•Provideclarityonthefutureoutlookofrenewableportfoliostandardsforbothprovincesandcompanies.

•RaiseinternationalawarenessandunderstandingofChina’srenewableenergycertificatestofacilitateglobalrecognitionofMNCs’low-carbonsupplychain

measures.

1.2AcceleratetheConstructionofaHigh-

qualityNewEnergySystemandEnsureEuropeanCompaniesHaveEqualAccesstoRenewableEnergyInvestmentOpportunities

Concern

EuropeancompaniesaretreatedunfairlycomparedtoChinesecompaniesintherenewableenergysector.

Assessment

DespiteChinabeingagloballeaderinhydroelectric,wind,solarandbiomasscapacities,7&8anditsincreasinglywelcomingpoliciestoattractforeigndirectinvestment,9China’srenewableenergypoliciesarequiterigid,whichdiscouragesforeigninvestors.

TherenewableenergylandscapeinChinaiscurrentlydominatedbyalimitednumberofstate-ownedenterprises(SOEs),withEuropeancompaniesfacingsignificantconstraintsonbothownershipandoperationofrenewableenergyassets,tothedetrimentofthemarket’soveralldevelopment.IfChinaweretoinsteadcreateacompetitivemarketwithparticipationfrommorediverseplayers,itwouldallowformorerapiddevelopmentanddeploymentofrenewableenergyassetsandtechnologybreakthroughs,whichisparticularlyimportantgiventhatmulti-trillion-dollarinvestmentsintotherenewableenergysectorare

7LedbyChina,globalbioenergycapacitycontinuesupwardtrend,GlobalEnergyMonitor,14thNovember2023,viewed17thApril2024,<

https://

/press-release/led-by-china-global-bioenergy-capacity-

continues-upward-trend/

>

8Renewables2023:ExecutiveSummary,InternationalEnergyAgency,2023,viewed17thApril2024,<

/reports/renewables-2023/executive-

summary#

>

9CompletelyEliminateBarrierstoForeignInvestmentAccessinManufacturingSector,ChinaNews,5thMarch2024,viewed6thMay2024,<

https://www.

/gn/2024/03-05/10174322.shtml

>

EnergyWorkingGroup221

SectionThree:Goods

SectionThree:Goods

Europeanchamber中国欧盟商会

anticipatedinthecomingdecade.10TheworkinggrouprecommendsthatChineseauthoritiesatalllevelsestablishincentivesforSOEstoengageinlong-termPPAswithforeigncompanies.ThiswouldbeinlinewithChina’ssustainabledevelopmentambitionsandtheintentiontocreateatransparentandsoundbusinessenvironment.

Regardingthenewenergyindustry,thepricingstrategiesofChinesecompaniesareputtinggreatpressureonEuropeanplayers.However,forprojectsthataremorecomplexandexpensive,forinstancedeepseadrilling,greateremphasisshouldbeplacedonenvironmentalsustainability,theoverallprojectlifecycleandreasonablevaluechaingrowth.Ifapricewarweretoemergeforsuchprojects,itcouldsqueezeouthigh-qualityindustryplayers,resultinginamonopoly,whichinturncouldhaveaseriousimpactonthedeepseaecosystem.Itisthereforenecessarytoacceleratethedevelopmentofprojectspecificationsthatcomplywithinternationalstandards,promotefaircompetitionandacceleratetechnologicalbreakthroughs,11&12ratherthancontinuetofocuspredominantlyonprojectcosts.

WithboththeEuropeanUnion(EU)andChinahavingunderscoredtheimportanceofenergyefficiencytechnologies,13theimpendingmassdecommissioningofwindturbinesandphotovoltaicinstallationsmeansthereisanincreasingneedforinnovativerecyclingtechnologies,suchasmaterialseparationandrecovery.TheEU’sobjectiveofreducinglandfilldisposalofturbinebladesby90percentby2030,14highlightsinnovativerecyclinginitiativessuchasthosebyBlade2Build.Byincreasingtechnologicalcooperationandindustrialresearchintheseareas,EUandChineseenterprisescanmorequicklyachievetheirbroader,mutualenvironmentalandeconomicaims.

10FosteringEffectiveEnergyTransition2023,Weforum,28thJune2023,viewed17thApril2024,<

/publications/fostering-effective-

energy-transition-2023/in-full/china/

>

11Liu,Y,China’ssolarsectorreadyingfornewchallenges,ChinaDaily,3rdJan2024,viewed16thApril2024,<

/hk/article/369568

>

12Foxwell,D,TurbineOEM,supplychainunfazedbyChineseoffshorewindthreat,Riviera,9thFeb2024,viewed16thApril2024,<

/news-

content-hub/news-content-hub/turbine-oem-supply-chain-unfazed-by-chinese-

offshore-wind-threat-79566

>

13NotificationonFurtherUpgradingEnergyEfficiencyStandardsandImplementation2023,NDRC,8thMarch,2023,<

/zhengce/

zhengceku/2023-03/20/content_5747524.htm

>

14Recyclingmaterialsfromgreenenergytechnologies(Signal),EEA,24thMay2024,viewed13thJune2024,<

https://www.eea.europa.eu/en/european-zero-

pollution-dashboards/indicators/recycling-from-green-technology

>

222EnergyWorkingGroup

Recommendations

•EnsurealevelplayingfieldforFIEsandSino-foreignjointventuressothattheyhaveanequalopportunitytoaccessrenewableenergyprojects.

•DefineFIEsasentitiesoriginallyheadquarteredoverseas,ratherthanforeignsubsidiariesofdomesticcompanies,toincreasemarketcompetitionandensuretransparencyandfairness.

•Allowmoreflexibilityonthechangeofshareholdingofrenewableenergyassetsbeforethecommercialoperationdateandrefinerelevantregulationstodifferentiatebetweenspeculationandlegitimatemarketactivities.

•Enhancethetransparencyofrenewableenergyassetallocationschemesandacceleratetheintegrationofrenewableenergyintothegrid.

•Streamlinepoliciesandprocessesforoffshoreprojectsandclarifytheapprovalsprocesstoexpeditethedevelopmentofdeep-seaandfar-seaprojects.

•EstablishSino-Europeanpilotdemonstrationprojects,especiallyinoffshorehydrogen,methanol,ammoniaandrecyclingtechnologies,inordertofostertechnologicalinnovationandknowledgeexchange.

•Optimisethealignmentandintegrationofrenewableenergyandnewenergytechnologieswithinternationaltechnicalstandards.

2.PromoteLowerCarbonEnergyVectorswith

aFocusonboththeEnergyTransitionandEnergySecurity

2.1PromoteNaturalGasandBiogasDevelopment

andAccelerateDecarbonisationofCoal-basedIndustries

Concern

Theroleofnaturalgasandbiogasastransitionalfuelsneedstobereinforced,withCCUSbeingdeployedtohelpdecarbonisehard-to-abateindustries.

Assessment

WhilenaturalgasiswellrecognisedasasourceofcleanenergyforroadvehiclesandmaritimevesselsintheNEA’sGuidingOpinionsonEnergyWork,15coal’simportanceinensuringChina’senergysecurityisalsoemphasised,whichisconcerningintermsofChina’scarbonneutralitytarget.

15GuidingOpinionsonEnergyWorkin2024,NEA,18thMarch2024,viewed6thMay2024,<

/2024-03/18/c_1310768578.htm

>

AlthoughFIEsalreadyhaveaccesstotheupstreamexplorationandwholesalemarketsofthenaturalgasi