Dr. Steffen Hundt, co-founder of Think RE and professor at TU Freiberg, and his master student Johanna Jahnel wrote a paper on the decarbonisation of corporates and the role of PPAs in China.
Under the title "Decarbonisation & Power Purchase Agreements – An economic Analysis of the regulatory Status Quo in China", the paper sheds more light on different instruments for reducing the GHG footprint of corporates in China. In this context, the authors focus on power purchase agreements which are one of the most sustainable ways for corporates in China to realize the net zero target. However, corporates have to overcome many regulatory barriers which the paper has identified. Moreover, the paper provides several regulatory recommendations for fostering PPAs and to avoid greenwashing.
"Since January 2020, the Chinese Renewable Portfolio Standard (RPS) is in force and aims on paving the way for China to realise its ambitious climate target of reducing 18% tCO2e during the 14th Five-Year Plan until 2025."
"The paper provides an overview of available contractual solutions for reducing the corporate carbon footprint [...] Power Purchase Agreements (PPAs) are analysed as an alternative way to realize corporate sustainability goals in China."
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