China's green electricity trading market is experiencing rapid growth, signaling a significant shift in the country's energy landscape as Beijing pushes for ambitious carbon neutrality goals, said industry experts.

The market, designed to facilitate the direct purchase of renewable energy by consumers, is gaining traction as companies seek to reduce their carbon footprint and meet increasingly stringent environmental regulations.

China's energy landscape is undergoing a dramatic shift, fueled by the rapid expansion of interconnected "electricity-carbon-certificate" markets, said Zhang Xiaoxuan, deputy director of the Enterprise Strategy Research Department of State Grid Energy Research Institute Co Ltd.

These markets are evolving at a rapid speed, reflecting Beijing's commitment to decarbonizing its power sector and achieving its ambitious climate goals, she said.

China's green electricity certificate (GEC) market has entered a new phase of growth in recent years, driven by mandatory consumption requirements for energy-intensive industries as well as growing awareness.

There has been a significant increase in interest from companies across various sectors, as companies are realizing that purchasing green electricity is not only good for the environment but also makes good business sense, enhancing their brand image and attracting environmentally conscious consumers.

According to Chang Qing, vice-president of Beijing Power Exchange Center, demand for green electricity is surging among both domestic and international companies operating in China, fueled by ambitious sustainability targets.

Multinational corporations like BMW and BASF have publicly committed to achieving 100 percent green electricity production within the next decade, she said.

In 2024, China's power generation exceeded 10 trillion kilowatt-hours, accounting for one-third of the global total. The country also supplies 70 percent of the world's photovoltaic modules and 60 percent of wind power equipment.

"To further promote the adoption of green electricity, China should continuously improve its green power trading mechanisms, facilitating the integration of green power transactions with provincial mid- and long-term contracts and spot market trading," said Chang.

The development of a robust green electricity and green certificate market is crucial for supporting renewable energy development in China, serving as a successor to subsidy policies and facilitating the integration of renewables into the power market, she said.

Launched in September 2021, the green electricity trading program allows companies to buy electricity directly from renewable energy generators, such as wind and solar farms, ensuring that their consumption is powered by clean sources.

This differs from the traditional grid system, where electricity from various sources is mixed, making it difficult to track the origin and environmental impact of the power consumed.

The volume of green electricity traded has surged in the past year, reflecting growing demand and increased participation.

According to the China Electricity Council, the total trading volume in the first half of 2025 reached a record high, exceeding the total volume traded in the entire year of 2024. This exponential growth underscores the increasing appetite for green energy among Chinese businesses.

China has aggressively pursued the development of carbon, electricity, and green energy certificate markets in recent years, accelerating its transition to a low-carbon economy, said Ouyang Changyu, deputy chief engineer of State Grid Corp of China.

The national carbon market, initially focused on the power sector, has expanded to include steel, cement and aluminum smelting, now covering over 60 percent of the country's carbon emissions, he said.

"Beijing is pushing for the full participation of renewable energy sources in the electricity market, leveraging market mechanisms to optimize energy resource allocation," Ouyang said.

"Furthermore, China is fostering innovative energy production and consumption models, including the development of zero-carbon industrial parks, direct green electricity connections and integrated power generation-grid-storage projects. These initiatives aim to promote the local and distributed utilization of renewable energy."