I-REC's Exit to Spur Development of China's Green Certificate System_热点资讯_HOME

Key Highlights:

Starting September 13, 2024, the International Renewable Energy Certificates (I-REC) began a gradual withdrawal from the Chinese market. This decision came as China now exclusively recognizes its own Green Electricity Certificates (GECs) and prohibits the double issuance of energy attribute certificates (EACs).

Impact:

For China's GEC Market: The withdrawal of I-REC reduces the risk of double counting of energy attributes and increases demand for GECs, which is beneficial for the development of China's green certificate system.

For Power Generation Companies: Companies that have already applied for I-RECs must sell these certificates before 2026, while those that have not yet applied should shift to GECs.

For Power-consuming Companies: Due to limited international recognition of GECs, these companies may face dual certification, requiring them to purchase both GECs and international green certificates, thereby increasing compliance costs. It is advised to monitor green certificate prices and optimize procurement strategies accordingly.

I-REC's Exit from the Chinese Market

I-REC's Exit to Spur Development of China's Green Certificate System

Background:

While China has established the world's largest carbon emissions market and clean energy system, gaps remain in low-carbon trade rules, especially in aligning with U.S. and European standards.

China plans to focus on building a green and low-carbon system over the next five years, as highlighted at the Third Plenary Session of 20th CPC Central Committee. This effort includes aligning domestic mechanisms with international standards (please refer to GL Consulting's September article "China Shifts Economic Development Goals to Balancing Development and Security" for the extended reading).

Previously, the I-REC stopped accepting applications from renewable energy projects connected to North American and European grids due to the well-established green certificate systems in those regions.

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