Renewable energy certification in China is going through a pivotal shift. For years, International Renewable Energy Certificates (I‑RECs) played a key role in enabling Chinese and multinational corporations to track and report renewable electricity usage. However, a 2024 regulatory overhaul has upended that model (1). I-REC was phased out by the I-Track Foundation in response to China's NEA policy implemented in August 2024, which effectively ended the use of I-RECs within China and designated its national Green Electricity Certificate (GEC) as the exclusive instrument for tracking renewable energy attributes. This shift ultimately redefined how renewable energy consumption is verified and claimed in the country. This article explores the history, rationale, implications of the transition, as well as what companies must do to stay aligned with global standards like RE100 and compliant with regulatory obligations.
Looking Back to Look Forward: A Regulatory Shift Ending I‑RECs in China
Before 2024, I‑RECs were the go-to mechanism for many sustainability-driven organizations operating in China. They offered internationally recognized proof of renewable electricity consumption and were compatible with global initiatives such as CDP, RE100 and the Science Based Targets initiative (SBTi). Chinese generators participating in the I‑REC scheme could issue certificates for power from unsubsidized solar and wind projects. Multinational buyers favored I‑RECs because of their transparency, global credibility and straightforward integration into international reporting systems.
In 2024, China’s energy authorities introduced a sweeping policy change: the GEC system would become the country’s only recognized Energy Attribute Certificate (EAC) scheme. Followed by the official announcement from I-TRACK Foundation, I-REC operations officially ended in China as of March 2025. The announcement was driven by the government’s ambition to unify its renewable energy tracking under a national framework and ensure data integrity, transparency and market stability.
This transition had significant impacts:
- No new electricity generation assets can be registered for Chinese IRECs.
- Registered IREC devices may request issuance for power generated up until December 31, 2024, but only if submitted on or before March 31, 2025.
- No Chinese I-RECs could be issued after April 2025.
The message is clear: all buyers, local or international, must now pivot to the GEC system for future renewable energy tracking, procurement, and disclosure.
The Green Electricity Certificate (GEC) System: The New Standard in China
First piloted in 2017,(2) the GEC system was initially limited in scope - covering only onshore grid-connected centralized wind and solar projects. But in 2023 and 2024, the government dramatically expanded the program’s reach and functionality. GECs can now be issued for:
- Wind power (including distributed wind power and offshore wind power), solar power (including distributed photovoltaic power and solar thermal power)
- Conventional hydropower (except projects commissioned before 2023)
- Biomass, geothermal, marine energy and other clean sources
Each GEC represents 1,000 kWh of renewable electricity and is valid for 24 months from the date of generation. GEC procurements work similarly to other countries' local systems. However, there are nuances that knowledgeable partners, like STX, can assist with as the process requires more details from the local entity for volume delivery.
By broadening eligibility and formalizing a legal structure for issuance and trading, the government positioned GECs as the backbone of its renewable tracking ecosystem.
GECs Gain Global Legitimacy: Alignment with RE100
A significant milestone came in May 2025, when RE100 officially confirmed that GECs meet its technical criteria for credible renewable electricity claims.(3) This recognition removed a critical barrier for companies seeking to maintain global consistency in sustainability reporting since GECs are now the only mechanism to address Scope 2 emissions associated with the purchase of power in China.
RE100’s endorsement of GECs means:
- Companies can now use GECs for China-based operations in RE100 reporting
- GECs carry equivalent credibility to IRECs, EACs and other international standards
- Multinational supply chains can continue to rely on Chinese renewable generation while meeting global targets
This validation positions GECs not just as a national standard, but as a viable global instrument for Scope 2 decarbonization efforts.
What This Means for Multinational Companies and Supply Chains
The phase-out of IRECs and rise of GECs is a fundamental restructuring of how renewable energy is accounted for in the world’s second-largest economy. GECs being RE100-compliant enables international claims and standardization, so companies must retool procurement workflows to work within China’s domestic market structure.
As the GEC system matures, it’s poised to become a cornerstone of China's decarbonization pathway and a model for other countries seeking to build credible, scalable EAC infrastructure. While it poses near-term challenges for procurement and reporting teams, it also opens the door to a more comprehensive, government-endorsed and internationally accepted system for renewable energy tracking. Prompt action is critical to secure GEC supply, manage pricing and avoid disruptions to renewable energy targets for corporates.
How to Access and Trade GECs
Companies are looking for comprehensive support as they navigate this transition. As a trusted leader and the largest global provider in EAC procurement, STRIVE by STX offers advisory and trading services for GECs. With deep experience in renewable energy markets, STX is helping clients secure high-quality GECs, manage price risks and align with international reporting frameworks like CDP and RE100. Contact us to learn more.
References
[1] (2024, September 13). China Introduces New EAC Policy. The International Tracking Standard Foundation. Retrieved August 6, 2025, from https://www.trackingstandard.org/china-introduces-new-eac-policy/
[2] (2023, December 12). Renewable certificates powering green transition. China Daily. Retrieved August 6, 2025, from https://www.chinadaily.com.cn/a/202312/12/WS6577b60ea31040ac301a742c.html
[3] (2025, May 8). China’s energy market ‘open for business’ after support from RE100 on certificates. Climate Group. Retrieved August 6, 2025, from https://www.theclimategroup.org/our-work/press/chinas-energy-market-open-business-after-support-re100-certificates
