China's basic energy law soon to be released

Image: www.freefoto.com

China is working on a new energy law, which will form the basis of the country's energy policies. A first draft is expected to be circulated by the end of this year, said the National Development and Reform Commission (NDRC). Many energy experts have claimed that such as energy law is necessary for the many energy projects and reforms that China will face in the coming decades. The law is expected to take two years before it is passed by the legislature. It should define clearly what the regulations for foreign acquisitions are, and it will establish an authoritative body that needs to approve all energy projects. Experts also recommended to establish clear rules for the central government and local authorities, and make it clear which level of government has decision power over which parts of the energy system. Besides energy, the law will also include regulations on environmental and safety measures. China is working on a new energy law, which will form the basis of the country's energy policies. A first draft is expected to be circulated by the end of this year, said the National Development and Reform Commission (NDRC). Many energy experts have claimed that such as energy law is necessary for the many energy projects and reforms that China will face in the coming decades. The law is expected to take two years before it is passed by the legislature. It should define clearly what the regulations for foreign acquisitions are, and it will establish an authoritative body that needs to approve all energy projects. Experts also recommended to establish clear rules for the central government and local authorities, and make it clear which level of government has decision power over which parts of the energy system. Besides energy, the law will also include regulations on environmental and safety measures.

A draft of another law, the "recyclable economy law", is now complete and will be submitted to the legislature next year. This was confirmed by a recent forum on a recyclable economy. The 11th Five-Year Plan, which will guide China's development between 2006 and 2010, states that building a recyclable economy is an important ingredient to transform China into a resource-efficient and environment-friendly society. China is currently the second largest energy producer and consumer in the world behind the United States. The country has four specific energy laws, wcich regulate the coal industry, electric power, energy conservation and renewable energy. Other imporant energy sector are not covered yet. For instance, legislation on petroleum and natural gas still needs to be drafted.

Source: China daily