Carbon trading enterprises will be subject to market scrutiny, as authorities indicate a focus on “price value.” By April 17, 2025, China’s carbon trading sector will undergo significant policy adjustments. On February 9, the National Development and Reform Commission (NDRC) issued a document titled Guidelines for Reforming the Carbon Market to Promote High-Quality Development of New Energy. This document serves as a roadmap for the next eight years, aimed at strengthening the carbon trading market.
According to the document, the guidelines emphasize the importance of a market-oriented approach. Currently, market responsiveness is returning to enterprises, allowing them to base decisions on the real-time carbon market conditions. The document outlines that the primary goal is to enhance the efficiency of carbon trading and to ensure that the market operates in a stable manner.
Recently, the carbon market has seen a significant increase in trading activities. The China National Energy Administration (NEA) reported that the cumulative installed capacity of new energy projects reached 372.0 GW by the end of 2024, reflecting a year-on-year increase of 28.6%. In total, China’s installed capacity of new energy projects was 137.9 GW, making up 37.1% of the total market capacity.
In the context of new energy technologies, the focus is increasingly on energy storage systems. By 2024, the NDRC plans to launch policies focusing on high-quality new energy development, including energy storage. The goal is to ensure that energy storage technologies contribute significantly to the stability and reliability of the power system.
The recent ESIE 2025 summit highlighted the shift towards innovative energy solutions. The report indicated that by 2024, new energy storage technologies will aim to achieve a cumulative installed capacity of 78.3 GW, which would account for 47% of the total market capacity. This marks a dramatic increase compared to previous years, indicating a growing demand for energy storage solutions in the power sector.
Moreover, the conference underscored the importance of integrating advanced technologies, such as artificial intelligence, into energy management systems. The NDRC emphasized that innovation and technological advancement are crucial for the future development of the energy sector in China.
As the energy landscape evolves, it is clear that the carbon trading market will play a pivotal role in enhancing energy efficiency and promoting sustainable energy practices. The guidelines set forth by the NDRC are a step towards ensuring that carbon trading aligns with the broader goals of high-quality energy development and environmental sustainability.
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Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/chinas-carbon-neutrality-goals-strategies-for-the-energy-sector-and-market-dynamics/
