Study of the Energy Law: Propelling Energy Legislation Research in China

The Energy Law marks a momentous milestone in the construction of the energy rule of law in China. It plugs the void for a top-tier legal framework within the energy legal system and indicates that high-quality and secure development in the energy sector has comprehensively entered a legal pathway.

 

 

(The author is the President of the Energy Law Research Association of the Chinese Law Society.)

 

The Energy Law marks a momentous milestone in the construction of the energy rule of law in China. It plugs the void for a top-tier legal framework within the energy legal system and indicates that high-quality and secure development in the energy sector has comprehensively entered a legal pathway. The exigency to formulate the Energy Law chiefly stems from a series of contradictions and challenges confronting China's energy development and security, influenced by the unprecedented global changes over the past century. The intricacy and variability of energy security circumstances, along with the increasingly harsh external conditions for ensuring energy supply, spotlight that currently, there is no all-encompassing fundamental legislation mirroring China's national energy strategy, basic policy orientation, or the overall adjustment mechanisms for energy relations and activities. This absence is at odds with the goals of constructing a modern socialist country in an all-round way and attaining high-quality and secure development in the energy sector. Only by enacting an Energy Law can robust legal safeguards be furnished to address these fundamental issues.

As an individual involved in drafting the Energy Law, I have witnessed its legislative journey since commencing my work at what was then known as the Ministry of Energy in 1988. Since its establishment in 1997, the Chinese Society of Legal Studies on Energy has unfailingly prioritized "serving national energy legislation" as its principal mission. Successive leaders and scholars have indefatigably engaged in research commissioned by national authorities regarding legislative studies associated with the drafting and revisions of this law, contributing essential theoretical insights and legal backing for its formulation.

The legislative process of the Energy Law can be broadly segmented into four phases:

Preliminary Research Phase: As early as from the late 1980s to the early 1990s, especially during my tenure at what was then called the Ministry of Energy (1988 - 1993), relevant departments under the State Council proposed organizing systematic research with the aim of constructing an integrated framework for the energy legal system and drafting an initial version of this law.

Initial Drafting Phase (2006 - 2008): In January 2006, following the approval of the State Council, meetings were convened involving multiple agencies including the National Development Reform Commission (NDRC), where a drafting group was instituted, led by Ma Kai, the former director-general of the National Energy Leading Group Office, with the participation of fifteen member units. I represented what was formerly known as the State Administration for Work Safety during this initial drafting stage, along with key leaders from China's Society for Legal Studies on Energy.

Review Draft Revisions Phase: In March 2015, modifications were initiated when the NDRC launched discussions regarding revising the earlier drafts submitted previously. I worked in close collaboration with team members, spearheading efforts to produce revised versions, which were subsequently reported back to the National Energy Administration after further refinements throughout December of that year and then resubmitted again later in November 2016.

Submission Review Phase (2023 - 2024): Recognizing that the current circumstances necessitated expediting the enactment process of this crucial legislation, by mid-2023, the Ministry of Justice presented the final draft proposals before State Council deliberations took place. This ultimately led to its successful passage through three rounds of review sessions conducted across various public forums, culminating in its formal adoption on November 8th during the twelfth meeting session of the Fourteenth NPC Standing Committee.

The novel strategic approach termed "Four Revolutions & One Cooperation" serves as both the thematic thread running through the provisions of the newly enacted statute and underlines the significance attached to safeguarding sustainable growth trajectories, which are directly tied to the broader objectives delineated therein. Such policies strive to achieve long-term stability in both domestic and globally interconnected markets.

The significant implications ensuing from its implementation encompass augmenting the prospects of quality-driven advancements through strict compliance measures, thereby elevating the status quo of the existing governance frameworks. Moreover, it lays down clear guidelines that will expedite the shift away from reliance on fossil fuels and enable the emergence of greener alternatives for future generations.

In conclusion, probing into the profundities of the principles underpinning the entire structure of the Energy Law demands a comprehensive understanding of how best to decipher the nuances inherent in the respective classifications assigned to each component part, which coalesce to form a cohesive whole, harmoniously aligned to fulfill the overarching aims initially envisioned and intended to be accomplished.

The Energy Law, in terms of its adjustment scope, adheres to a problem-solving approach, zeroing in on the significant social relations and fundamental issues prevalent in China's energy sector. Firstly, it tackles vertical energy social relations, specifically the unequal relationships among various entities engaged in macroeconomic regulation, strategic planning, development and utilization, energy markets, supply and consumption, emergency reserves, and supervision management. This encompasses the administrative management relationship between national and local governments at all levels, their energy regulatory bodies, energy enterprises, social organizations, and citizens. Secondly, it addresses the horizontal energy social relation concerning equal entities involved in production, processing, utilization, as well as supply and consumption within the energy sector. Thirdly, it pertains to the international cooperation relationship in respect of foreign-related aspects such as the import-export activities of energy resources and overseas development collaborations.

Regarding the strategies and policies for the high-quality and secure development of energy resources, upholding the leadership of the Communist Party of China over energy-related work is deemed essential for propelling high-quality and secure advancements in this domain. Article 3 of the Energy Law stipulates that all energy-related endeavors must adhere to the leadership of the Communist Party of China, implement new developmental concepts, embrace an overarching national security perspective, balance development and security, execute a new strategy of "Four Revolutions" along with "One Cooperation" to ensure energy security, prioritize domestic foundations while diversifying guarantees, emphasize conservation-first principles, foster green developments, and thereby hasten the construction of a clean, low-carbon, secure, and efficient modernized energy system.

Concerning the basic legal systems governing energies within this law framework: The Energy Law erects foundational legal structures applicable to other specific laws or regulations pertaining to energies. Firstly, it establishes an upward-downward structured planning system for energy development through an integrated planning regime. Secondly, it clarifies the directions for structural adjustments and the relevant policy frameworks surrounding resource exploitation processes. Thirdly, it progresses towards creating a unified, open, competitive, and orderly market structure characterized by diverse stakeholders effectively regulated within the market dynamics. Fourthly, it bolsters emergency preparedness capabilities via established reserve systems tailored to energy needs during crises situations arising from unforeseen circumstances or disruptions directly affecting supply and consumers' accessibilities and overall reliability standards. Fifthly, it fortifies technological innovations underpinning both developmental progressions and safeguarding measures necessary to confront the evolving challenges. Sixthly, it augments administrative oversight mechanisms to ensure compliance and adherence among participants operating in their respective domains as per the stipulated guidelines. Seventhly, it institutes accountability protocols mandating responsibility where obligations exist without exception.

Research Efforts in Energy Legislation: A Lengthy and Arduous Journey

The enactment of the Energy Law embodies the collective wisdom amassed from the unremitting contributions of experts dedicated solely to advancing research initiatives centered on legislative matters associated with it. This has elevated China's scholarly pursuits into novel realms, broadened horizons, and set loftier benchmarks for future achievements.

This legislation proffers established strategic directives accompanied by lucid legal foundations, guiding actionable goals and directing future inquiries into the intricacies, deep-rooted complexities, and interdependencies inherent in existing societal constructs. This mandates a meticulous examination and critical evaluation of eight focal areas, warranting systematic and methodical investigations to comprehensively understand, holistically appreciate, and contextually frame each aspect precisely, articulately, and coherently. The law's impact spans a vast spectrum, from inspiring and empowering individuals and communities to revolutionizing and transforming the energy landscape and beyond, ultimately aiming to achieve a harmonious, sustainable, and prosperous future.