Five departments have jointly issued a document that standardizes the recognition and accounting of non-fossil energy electricity consumption. The departments that released the Guideline on Accounting for Non-Fossil Energy Electricity Consumption (Trial) are the National Development and Reform Commission, the National Energy Administration, the Ministry of Ecology and Environment, the National Bureau of Statistics, and the National Data Administration.
The Guideline establishes three recognition methods for non-fossil energy electricity consumption. Physical recognition covers self-generated and self-consumed electricity, self-consumed electricity from new business models such as direct green power connections, and electricity consumed in the production of non-fossil energy power generation projects. Trading recognition involves non-fossil energy electricity participating in electric energy trading and green certificate trading. Allocation recognition addresses non-fossil energy electricity not covered by the first two methods, ensuring completeness through inter-provincial and intra-provincial allocation.
Regarding accounting methods, the Guideline specifies approaches at three levels: provincial, prefectural/municipal, and electricity user. It emphasizes alignment and consistency of data across different levels while avoiding double counting. At any single level, each kilowatt-hour of non-fossil energy electricity consumption is recognized using only one method and attributed to only one entity.
Zhang Yiguo, member of the Party Committee and Vice President of China Renewable Energy Engineering Institute, noted that the effective implementation of the carbon emission dual-control system relies on a comprehensive and accurate carbon emission accounting framework. The power sector accounts for over 40% of the country's total carbon emissions, making the accounting of indirect emissions from electricity consumption a critical component, with data accuracy directly affecting the scientific validity and credibility of carbon accounting results. By the end of 2025, China's installed non-fossil energy power generation capacity exceeded 61% of the total. As non-fossil energy electricity consumption scales up, its importance in indirect emission accounting grows, yet issues remain, including inconsistent accounting rules, insufficient coverage of accounting objects, and the need for better coordination among different policy mechanisms.
Shan Baoguo, member of the Party Committee and Vice President of State Grid Energy Research Institute Co., Ltd., stated that carbon emission statistical accounting is a fundamental task for implementing the dual-control system. While direct CO2 emission accounting rules for fossil fuel activities and production processes are relatively clear, methods for accounting for indirect carbon emissions embedded in electricity consumption still require improvement.
Zhang Yiguo said that the Guideline establishes a closed-loop system linking dual-control implementation, indirect emission accounting for electricity consumption, and non-fossil energy electricity consumption accounting. By integrating multiple factors such as physical connections, electric energy trading, green certificate and green electricity trading, energy statistics, and carbon emission accounting, it clarifies recognition standards and regulates three-level accounting methods, effectively avoiding double counting of non-fossil energy electricity, providing refined support for indirect emission accounting, and promoting effective coordination among related policy mechanisms.
Shan Baoguo noted that the Guideline incorporates electric energy trading and green certificate/green electricity trading into the accounting of non-fossil energy electricity consumption at all levels, facilitating a transition from rules based solely on electric energy trading to those that also include green certificate trading. This leverages the power market's role in energy conservation and carbon reduction while utilizing the advantages of China's green certificate system, making green certificate and green electricity trading an important means for users to increase non-fossil energy consumption and achieve green and low-carbon transformation. It will effectively link these transactions with carbon emission accounting, providing market-based support for achieving the dual-carbon goals.
An official from the National Energy Administration stated that the next steps will focus on using the accounting to support statistical calculations of the share of non-fossil energy consumption in provincial-level administrative regions, evaluation and assessment, and indicators related to high-quality development comprehensive performance evaluation. At the same time, orderly coordination will be ensured with policies such as the minimum renewable energy consumption proportion target and renewable energy electricity consumption weighting, the carbon emission dual-control system, carbon emission statistical accounting, product carbon footprints, and voluntary green certificate consumption, thereby expanding the scope of application and leveraging combined policy effects.