The Challenge
Back in the years 2021/2022, we identified a critical challenge for German companies operating in China: accessing reliable, affordable, and internationally recognized green electricity. Companies striving to reduce their carbon footprints faced several obstacles:
- Lack of international recognition of the Green Electricity Certificate (GEC) system in China
- Limited access and supply of green electricity
- High costs for and limited sources of green electricity
- Unclear integration with carbon management
- Limited long-term power purchase agreements (PPAs) option
Our Actions
We have been actively advocating for the adoption and recognition of green electricity in China. This is our advocacy journey:
1) Our advocacy efforts began with dedicated Advocacy Papers, addressing the core challenges:
- 2022: Advocacy Paper: German Companies’ Role in Achieving China’s Decarbonization Goals.
- 2023: Advocacy Paper on Stable Access to Green Energy,
- 2024: Advocacy Paper: Greening China’s Economy – Contributions by German Companies
2) We actively fostered dialogue between German businesses and Chinese authorities through roundtables and strategic meetings. For example:
- February 2023: Shanghai – Company Roundtable on Green Energy
- March 2023: Beijing – Company Roundtable on Green Energy
- September 2023: German Local Business Advisory Council on Green Power Procurement, hosted by the German Embassy, GCC and GIZ
- March 2024: Green Energy Closed-Door Roundtable with the National Energy Administration (NEA)
- September 2024: Green Transformation Symposium in Guangzhou
- June 2025: Policy Briefing and Case Sharing on Green Energy Transformation
Breakthroughs
Persistence paid off. Our efforts led to tangible results, especially 2025 marks a significant breakthroughs:
- In July 2023, the Chinese government extended GEC coverage to include distributed photovoltaic (PV) systems.
- In 2024, China established a regulatory framework for long-term green power contracts.
- In March 2025, the RE100 initiative recognized China’s Green Electricity Certificates (GECs) without conditions
- In April 2025, new guidelines were released, connecting green electricity certificates with carbon emission accounting and energy consumption control
Result
Now, companies feedback that they feel relieved by the progress made, particularly by being able to align their headquarters' strategies through the purchase of Green Electricity Certificates (GECs) in China. However, our journey is far from over. We continue to foster dialogue with Chinese authorities, striving for the actual recognition and implementation of green electricity policies.