Following on from our blog post on the benefits of using Green Electricity Certificates (GECs), we explore whether if the GEC is a credible tool to make renewable energy claims.
Why was the GEC Scheme Developed?
To recap, as China spearheaded the increase in global renewable energy capacity, it became necessary to implement a framework for individuals and businesses to make credible energy claims. The GEC scheme was developed to:
- Facilitate the tracking and verification of renewable energy generation and consumption
- Orientate China’s renewable energy sector in line with market principles
- Catalyse private sector investment in renewable energy projects
- Satisfy demand from businesses and individuals to procure renewable electricity
To ensure the integrity of GECs issued, Chinese authorities have been proactively regulating, developing and strengthening GEC ecosystem over the years.
What are the measures taken to ensure and uphold GEC credibility?
Firstly, the GEC is China’s version of an Energy Attribute Certificate (EAC). Like other types of EACs, each GEC includes relevant information to trace the associated renewable energy generated to its origin.
Secondly, each GEC is issued and recorded in a registry administered by the Chinese government. China’s National Energy Administration (NEA) is the issuer of the GEC.
Thirdly, Chinese authorities have also been implementing measures to ensure the integrity of GECs issued and prevent duplication of GECs and carbon credit issuance for the same energy. They include:
- Implementing a framework to prevent duplicate issuance of GEC and carbon credits
- Establishing an information sharing mechanism between GEC and CCER markets
- Strengthening the supervision of transactions through technological means
More information on preventing duplicate GEC and CCER credits can be found here.
How credible are GECs?
The answer is Yes. GECs are credible. Reasons include:
- GECs are verifiable
Like all other types of EACs, a GEC contains information to trace the associated energy generated back to a renewable energy source.
- Proactive regulation by authorities for the GEC
Chinese authorities play an active role in the issuance, regulation and development of the GEC ecosystem. These include the NEA as the issuer of GECs, and the implementation of initiatives that prevent renewable energy projects from issuing both GECs and carbon credits for the same energy produced.
- Supervision of GEC transactions using technology
The government has encouraged the use of new technologies such as big data and blockchain to strengthen the supervision of the national GEC issuance and trading system.
- International recognition
Internationally, RE100, the global initiative for corporates to adopt 100% renewable energy use, recognises the validity of the GEC to address Scope 2 emissions.
GECs provide verifiable and credible claims of renewable energy consumption, and businesses operating in China can meet their renewable energy goals with confidence by using GECs.
In our next blog post, we will explore the trends shaping the GEC ecosystem.
Contact us enquiry@redex.eco to find out more about GECs and how we can support your renewable energy journey in China.
Find out how we can support your renewable energy journey in China.
