To liberalise China’s renewable energy market and enable businesses and individuals to voluntarily purchase renewable electricity, China introduced the Green Electricity Certificate (GEC) scheme in July 2017. This initiative also aimed to:
Strengthen the tracking of renewable
energy consumption
Support the growing demand for Renewable Energy Certificates (RECs) in the market
Encourage investment in renewables
What is a Green Electricity Certificate (GEC)?
A Green Electricity Certificate (GEC) is China’s version of a REC. Like other RECs, each GEC represents 1 megawatt-hour (MWh) of renewable electricity generated from sources like solar and wind power.
Each GEC provides proof of production of renewable electricity and enables its buyer to claim the use of renewable energy. It is a simple and effective tool that allows entities to address Scope 2 Emissions, which are indirect greenhouse gas (GHG) emissions associated with the purchase of electricity, steam, heat, or cooling.
GECs are a type of Energy Attribute Certificate (EAC), which allows entities to claim the environmental attributes of the associated renewable energy production.
China’s National Energy Administration (NEA) is the sole body responsible for the issuance and administration of GECs.
Why Use GECs?
Green Electricity Certificates (GECs) are the sole recognised instrument to track renewable energy production and consumption in China.
They provide verifiable claims and traceability of renewable electricity usage, ensuring transaction and market integrity. RE100 recognises GECs as a credible tool for businesses to claim the use of clean electricity and address Scope 2 emissions.
Businesses operating in China can procure and retire GECs to claim the use of zero or low-carbon electricity, thereby reducing their carbon footprint and ensuring compliance with global sustainability standards. Since GECs are the sole legal instrument for tracking renewable energy certificates in China, using them ensures alignment with local regulations.
GECs may be traded only once before retirement, ensuring a transparent and effective market mechanism for tracking renewable electricity use.
Key Benefits of Using GECs
Reduce carbon footprint
Comply with global sustainability standards
MNCs can use GECs to account for renewable energy use in their China-based operations.
Comply with local laws
Enhance competitive edge
Support renewable energy development
in China
Create a greener future
Comparison between GEC and International RECs
| Feature | GEC | International RECs |
|---|---|---|
| Trading | Can only be traded once before retirement | Can be resold multiple times before final retirement |
| Ownership Transfer | Once sold, the buyer must retire the GEC and claim its environmental attributes | Ownership can be transferred multiple times before final retirement. |
| Market Scope | Exclusive to China, issued and administered by China’s National Energy Administration | Non-China markets |
| Compliance with Sustainability Standards | Recognised by RE100 | Recognised by RE100 |
GEC Credibility
REDEX offers a one-stop solution for international buyers of Green Electricity Certificates (GECs), streamlining the GEC trading and retirement process.
REDEX enables businesses to conveniently adopt renewable energy in China and address their Scope 2 emissions using Green Electricity Certificates offered on REDEX’s platform.
As the sole legally recognised renewable energy tracking instrument in China, the GEC aligns with global sustainability standards, including RE100, which recognises GECs as a credible tool for corporate sustainability reporting.
GECs are issued and administered by China’s National Energy Administration (NEA), ensuring a secure and transparent system. The official tracking mechanism guarantees the authenticity of each GEC, preventing double counting and maintaining market integrity.
Explore Our In-depth Guide on Green Electricity Certificates (GECs)
Stay updated with the latest developments in China’s Green Electricity Certificate (GEC) market.
Frequently Asked Questions About GEC
What is the status of I-REC(E) in China?
No new I-REC(E) will be issued after 31 March 2025 in China. All I-REC(E) issued up to 31 March 2025 will only be for power generated up to 31 December 2024.
For more information about the I-REC(E) certification, check out the I-REC(E) page.
Why use Green Electricity Certificates (GECs) in China?
Green Electricity Certificates (GECs) are the sole recognised instrument to track renewable energy production and consumption in China.
No new I-REC(E) will be allowed to be issued after 31 March 2025 in China. All I-REC(E) issued up to 31 March 2025 will only be for power generated up to 31 December 2024.
Check out our Insight articles for the latest updates on the GEC market.
What type of renewable energy projects can issue GECs in China?
Under the latest policy (Document 1044), almost all renewable energy sources in China can now issue Green Electricity Certificates (GECs). Eligible projects include all types of wind power (onshore, offshore, and distributed), all types of solar power (utility-scale and distributed/rooftop), hydropower, biomass-to-power, geothermal, and wave power.
Before issuing GECs, projects must be registered on China’s National Renewable Energy Power Generation Project Information Management Platform. However, hydropower projects that started operation before 1 January 2023, cannot issue tradable GECs, as these certificates are automatically allocated to the grid company.
Are GECs recognised by RE100?
RE100 has recognised GECs to provide credible claims for the use of renewable electricity.
Where can MNCs procure GECs for their subsidiaries in China?
REDEX offers a one-stop solution for international buyers of GECs. We have streamlined the GEC buying and retirement process, enabling businesses to adopt renewable energy conveniently using GECs.
Can GECs be sold more than once?
No. Once sold for the first time, GECs must be retired and their environmental benefits claimed. GECs cannot be sold more than once.
