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Subject

Reform of China's energy sector.

Significance

The government has recently taken steps to reform China’s energy sector, diversify the number of actors and increase the role of market forces. However, the state retains a dominant position in the sector.

Impacts

It could still be many years before the draft Energy Law of 2020 is formally adopted into law.

Measures to open up the oil and gas industry are likely to have little effect, especially at a time of low oil and gas prices.

New electricity and carbon markets will not achieve their potential in terms of economic efficiency and emissions reduction for many years.

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