Corporate Sustainability in China

RENEWABLE PORTFOLIO STANDARD (RPS)

Since January 2021, the so-called RPS transfers the countrywide renewable energy target quota down on a provincial level. However, corporates can purchase green power directly from the producer but must be aware that they become RPS Obligated Party which means that they need to apply the provincial target quota on its individual load. Therefore, corporates are exposed to additional regulatory and commercial risks in case of missing the target quota.

CHINESE EMISSION TARGETS

An expert group around the Tsinghua University’s Institute of Climate Change and Sustainable Development comes to the result that China will overachieve its climate targets in its current 14th Five-Year Plan.The Chinese power market is increasingly open for more liberalized sourcing solutions like unbundled energy attribute certificates and power purchase agreements. However, due to the structural and regulatory barriers like e.g. double counting of green electricity certificates (GECs), the majority of renewable energy is sourced and distributed by the public utility sector.