Xinhua News Agency:

The third plenary session of the 20th CPC Central Committee proposed deepening reforms comprehensively and modernizing China's system and capacity for governance. What capabilities will China strengthen in terms of the energy transition? Thank you.

Zhang Jianhua:

Thank you for the question. I'll answer it. The energy transition is a broad and profound systemic transformation of the economy and society, requiring a significant enhancement of the energy governance system and modernization of governance capacity. In recent years, China has leveraged the decisive role of the market in resource allocation through various measures, such as promoting reform, improving policies, and ensuring the rule of law. These efforts have given better play to the role of the government and created a favorable development environment for the energy transition. As you said, the third plenary session of the 20th CPC Central Committee proposed deepening reform of the energy management system and accelerating the planning and development of a new type of energy system, providing a clear direction for building the energy governance system and capacity. Next, we will focus on four key areas of work.

First, we need to deepen energy reform. We will establish a unified national electricity market, continue expanding the coverage of markets for spot trading of electricity, and further improve the allocation of electricity resources. We'll also establish and improve mechanisms for green and low-carbon development, accelerate the cultivation of green electricity and green electricity certificate markets, and improve the policies for promoting the absorption of electricity generated from new energy sources into power grids and for the regulation of such energy. Additionally, we will promote the safe, reliable, and orderly replacement of fossil fuels with non-fossil energy. We will promote independent operation of natural monopoly businesses and advance market-oriented reforms in the competitive areas.

Second, we need to improve energy legislation. We will formulate an energy law, compile an environmental code, accelerate revisions to the Renewable Energy Law, Energy Conservation Law, and Electric Power Law, and strengthen the enactment of laws on energy saving and efficiency improvement as well as prioritizing clean energy development and utilization. Moreover, we will implement incentive and constraint systems such as green certificates to promote green energy consumption and support green and low-carbon technology innovation. We will also promote the formulation and revision of laws and regulations guiding green and low-carbon energy use in key sectors.

Third, we need to strengthen development planning. We'll conduct thorough research and preparation for the 15th Five-Year Plan for energy, fully leveraging the strategic guiding role of national energy planning in major project layouts, public resource allocation, and social capital investment. We will balance development and security, clarifying an energy transition timeline and roadmap. Additionally, we'll improve standards for green and low-carbon energy development.

Fourth, we need to strengthen energy oversight. We will enhance the supervision of major energy plans and the implementation of clean energy projects. We'll increase oversight of the absorption of electricity generated from renewable energy sources into power grids and the construction and operation of adjustable energy supplies to ensure the effective application of major energy transition policies. We will also tighten supervision of market transactions, pricing mechanisms, and information disclosure to ensure the effective implementation of rules for new energy market participation. Thanks.