Landing Successfully Held a Seminar on Carbon Reduction and New Energy

Translator：Zhang Xiaotong

On the afternoon of July 14th, the seminar on Carbon Reduction and New Energy was held at Shanghai Landing Law Offices. The seminar was chaired by Sun Xian, a senior partner at Shanghai Landing Law Offices.

Liu Yixing — Opportunities and Legal Risks of Energy Companies' Overseas Investment

Liu Yixing, the director of the Global Management Committee at Shanghai Landing Law Offices, believes that for lawyers to achieve differentiated competition, they need to grasp the current trending industries, one of which is new energy.

One of the important factors for the new energy industry to take root in China is its ability to change. This is largely attributed to the innovative spirit of the Communist Party of China as a revolutionary party. The Party's tolerance of new things and its thorough rejection of conservative feudal forces have created an open atmosphere in society, allowing new ideas to thrive and develop rapidly.

Another reason lies in the integrated advantage of the ruling party. The development of the new energy industry is a complex system engineering task. China, in comparison with the West, can effectively form unified opinions. Therefore, China can integrate a complete new energy industry chain and form efficient industrial advantages. When it comes to going global in new energy, China is also good at integrating domestic and foreign markets.

Director Liu Yixing pointed out that China's new energy companies face several obstacles and drawbacks when going overseas. Firstly, there is hostility from the international community towards China. Secondly, Chinese companies tend to trust the West too much and often lack due diligence when investing overseas. Thirdly, they are overly reliant on acquaintances, which can easily lead them into investment traps.

Finally, Director Liu Yixing concluded that we should fully recognize our strengths and weaknesses, seize the opportunity of new energy, and create a new world.

Ge Shupan — Carbon Neutrality · Carbon Trading

Ge Shupan, an associate professor from the School of Economic Law at Shanghai University of Political Science and Law, introduced the definition of "Double Carbon". "Double Carbon" refers to carbon peaking and carbon neutrality. Carbon peaking means that carbon dioxide emissions reach their peak, which is a concept of a point in time. Carbon neutrality refers to the total amount of carbon emissions produced over a period of time, measured and calculated by carbon emission organization, which is offset by carbon reduction activities to achieve relative "zero emissions". At present, carbon neutrality is an important goal and direction to prevent greenhouse gases from affecting climate change, and it has become a global consensus.

An important means to achieve carbon neutrality is the carbon emission trading mechanism, as known as carbon trading. Carbon trading originated from the "Cap and Trade Law" of the 1990s, which required producers to pay for carbon emissions resulting from overproduction. There are currently three mechanisms for carbon trading: International Emission Trading (IET), Joint Implementation (JI), and Clean Development Mechanism (CDM). The logic of carbon trading is that the government grants emission allowances to emitters. If corporates and individuals do not use up these allowances, they can resell them.

Throughout his speech, Professor Ge Shupan emphasized the economic attributes of carbon neutrality. Under the system of carbon neutrality, society can still use coal and oil to maintain economic operations, but we need to solve the emissions consequences of production to achieve neutrality.

Xu Qin — Future City of Energy: Photovoltaics

Xu Qin, the founding partner of Shanghai Landing (Wuhan) Law Offices, used solar photovoltaics as an entry point to discuss legal practices in the new energy field, thus providing a glimpse into the future of the new energy sector.

Lawyer Xu Qin first gave a simple introduction to the basic concepts and categories of photovoltaics, differentiating between off-grid and grid-connected photovoltaic power generation systems for the audience. Regarding the current state of the domestic photovoltaic industry chain, Lawyer Xu Qin pointed out that China's photovoltaics are the world's number one, as China has the most complete photovoltaic industry chain, the largest global market share, and the highest installed capacity.

After briefly presenting the existing laws, regulations, and policy documents about photovoltaics in China, Lawyer Xu Qin elaborated on the legal practices in the development process of ground photovoltaic power stations. The legal practices in the development process of ground photovoltaic power stations can be divided into five stages, including the preliminary survey stage, the preliminary procedures handling stage, the project construction drawing stage, the project construction implementation stage, and the pre-electricity prerequisites stage. Lawyer Xu Qin explained in detail the procedures, materials, and points to note in each stage to the attendees.

In conclusion, Lawyer Xu Qin mentioned that the track of new energy has become a red ocean rather than a blue ocean, but there is still much to do for lawyers. He called on Landing lawyers to provide better legal services for enterprises.

Zhao Zitao — Legal Risks of Coal Enterprises Under the Background of Double Carbon

Zhao Zitao, the director of Shanghai Landing (Taiyuan) Law Offices, stated that coal, as the primary energy source in China, supports the rapid development of China's social economy. Furthermore, it will continue to play an important role in the long term. Achieving the transformation of coal development is the cornerstone and primary task of China's energy transition.

Lawyer Zhao Zitao first cited data to report on the situation of China's coal industry. China's proven coal reserves, production, and consumption all rank first globally. At present, domestic coal consumption has surpassed domestic coal production, and China's coal production has reached its peak. Since 2008, China has transformed from a net coal-exporting country to a net coal-importing country.

To achieve the Double Carbon targets, China's coal industry faces a revolution of energy production and consumption. The first fundamental point is to control the total volume of energy through energy-saving measures. The second fundamental point is to adjust the energy structure, using clean, low-carbon energy. In the energy consumption revolution, it is important to control the total consumption of coal, and at the same time implement a reduction in coal consumption and search for alternatives. Lawyer Zhao Zitao, combining the process of the whole coal production chain, shared the challenges and opportunities that Chinese coal enterprises face in the context of energy conservation and emission reduction.

Finally, Lawyer Zhao Zitao mentioned problems he discovered in Chinese coal enterprises during his career. These include abandoned construction of 5G smart mines, the cost problem of coal gangue backfill, reform of coal washing equipment, and market-based coal pricing, among others.

Zhang Weilin — New Energy Project Application Process and Corresponding Legal Risks

Zhang Weilin, director of Shanghai Landing (Lanzhou) Law Offices, brought information about the new energy project application process and corresponding legal risks.

Lawyer Zhang Weilin organized the documents and procedures needed for each stage of the new energy project application according to each stage of the new energy project. The first aspect is the preparation stage of the project. Most companies currently invest in new energy through equity transfers, investment and financing, mergers and acquisitions, etc. In the due diligence process, all relevant procedural documents, including project plans, framework agreements, etc., should be obtained. In addition, the coordinates of the project site should be verified, and disruptive factors should be investigated. The second aspect is the project filing stage, where a feasibility study report should be prepared. The third aspect is the pre-examination stage of the project site, mainly involving the design of the construction project plan. The fourth aspect is the project approval stage, which involves social stability, risk service reports, and record-keeping, etc. The fifth aspect is the project authorization stage.

Lawyer Zhang Weilin introduced that Gansu's wind energy, photovoltaic, and other new energy installations account for a huge proportion. Gansu Province is developing from a "wind and photovoltaic" major province towards a "wind and photovoltaic" strong province. However, there are still several prominent problems that urgently need to be solved, such as energy storage issues, absorption issues, dismantling and recycling issues, equipment cleaning, etc.

This seminar discussed the opportunities for overseas investment in new energy, the principles of carbon trading, legal practices in the photovoltaic industry, legal risks of coal enterprises, and project declarations for new energy. From a macro perspective to micro operations, the conference comprehensively covered hot legal issues in the field of carbon reduction and new energy. The seminar, which combined offline meeting with online broadcasting, attracted over a thousand online viewers, garnered a passionate response, and concluded successfully.