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Clean energy contributed a record 11.4tn yuan ($1.6tn) to China’s economy in 2023, accounting for all of the growth in investment and a larger share of economic growth than any other sector.

The new sector-by-sector analysis for Carbon Brief, based on official figures, industry data and analyst reports, illustrates the huge surge in investment in Chinese clean energy last year – in particular, the so-called “new three” industries of solar power, electric vehicles (EVs) and batteries.

Solar power, along with manufacturing capacity for solar panels, EVs and batteries, were the main focus of China’s clean-energy investments in 2023, the analysis shows.

(For this analysis, we used a broad definition of “clean energy” sectors, including renewables, nuclear power, electricity grids, energy storage, EVs and railways. These are technologies and infrastructure needed to decarbonise China’s production and use of energy.)

Other key findings of the analysis include:

  • Clean-energy investment rose 40% year-on-year to 6.3tn yuan ($890bn), with the growth accounting for all of the investment growth across the Chinese economy in 2023.
  • China’s $890bn investment in clean-energy sectors is almost as large as total global investments in fossil fuel supply in 2023 – and similar to the GDP of Switzerland or Turkey.
  • Including the value of production, clean-energy sectors contributed 11.4tn yuan ($1.6tn) to the Chinese economy in 2023, up 30% year-on-year.
  • Clean-energy sectors, as a result, were the largest driver of China’ economic growth overall, accounting for 40% of the expansion of GDP in 2023.
  • Without the growth from clean-energy sectors, China’s GDP would have missed the government’s growth target of “around 5%”, rising by only 3.0% instead of 5.2%.

The surge in clean-energy investment comes as China’s real-estate sector shrank for the second year in a row. This shift positions the clean-energy industry as a key part not only of China’s energy and climate efforts, but also of its broader economic and industrial policy.

However, the spectre of overcapacity means China’s clean-energy investment growth – and its investment-driven economic model, in general – cannot continue indefinitely.

The growing importance of these new industries gives China a significant economic stake in the global transition to clean-energy technologies.

Yet it also poses questions for overseas policymakers attempting to tie their own climate strategies to domestic industrial growth.

Clean energy drives China’s growth in 2023

China’s clean-energy investment boom means the sector accounted for all of the growth in investment across the country’s economy in 2023, with spending in other areas shrinking.

China invested an estimated 6.3tn yuan ($890bn) in clean-energy sectors in 2023, up from 4.6tn yuan in 2022, a 1.7tn yuan (40%) year-on-year increase. In total, clean energy made up 13% of the huge volume of investment in fixed assets in China in 2023, up from 9% a year earlier.

With Chinese investment growing by just 1.5tn yuan in 2023 overall, the analysis shows that clean energy accounted for all of the growth, while investment in sectors such as real estate shrank.

This is shown in the figure below, which also highlights the concentration of clean-energy investment in the so-called “new three” of solar, energy storage and EVs.

Clean energy was also the top contributor to China’s economic growth overall, contributing around 40% of the year-on-year increase in GDP across all sectors.

Clean energy was the top driver of China's economic growth in 2023
Contributions to the growth in Chinese investment (left) and GDP overall (right) in 2023 by sector, trillion yuan. “New three” refers to solar, EVs and storage. Source: Centre for Research on Energy and Clean Air (CREA) analysis for Carbon Brief. Chart by Carbon Brief.

Including the value of goods and services, the clean-energy sector contributed an estimated 11.4tn yuan ($1.6tn) to China’s economy in 2023, an increase of 30% year-on-year.

This means clean energy accounted for 9.0% of China’s GDP in 2023, up from 7.2% in 2022.

Without the contribution of clean-energy sectors to China’s economic growth in 2023, the country would have seen its GDP rise by just 3.0%, instead of the 5.2% actually recorded.

This would have missed government growth targets at a time of increasing concerns over the nation’s economic prospects, amid the ongoing real-estate crisis and declining population.

The major role that clean energy played in boosting growth in 2023 means the industry is now a key part of China’s wider economic and industrial development.

This is likely to bolster China’s climate and energy policies – as well as its “dual carbon” targets for 2030 and 2060 – by enhancing the economic and political relevance of the sector.

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The ‘new three’ dominate clean-energy investment

This analysis is based on a combination of government releases, industry data and analyst reports, with the exact methodology varying sector-by-sector, as set out in the sections that follow.

The table below lists the estimated contributions of each sector to Chinese investment and GDP overall in 2023, as well as the year-on-year growth since 2022.

The analysis includes solar, EVs, energy efficiency, rail, energy storage, electricity grids, wind, nuclear and hydropower within the broad category of “clean-energy sectors”. All of these are technologies and infrastructure needed to decarbonise China’s energy supply and consumption.

The so-called “new three” of solar, storage and EVs are all prominent in the table – and all recorded strong growth.

Our analysis shows that investment in clean power generation and energy storage capacity reached 1.7tn yuan in 2023 (up 48% year-on-year), while investment in manufacturing capacity for solar, EVs and batteries reached 2.5tn yuan (+60%).

Investment in clean-energy infrastructure reached 1.4tn yuan (+9%, comprising grids, EV charging points and railways) and investment in energy efficiency was 600bn yuan (+15%).

Meanwhile, our analysis shows the value of production of goods and services in the clean-technology sectors reached 5.1tn yuan in 2023, increasing 26% year-on-year.

This includes the value of electricity generation, EV sales and solar exports, as well as the transport of passengers and goods via rail.

Sector Activity Value in 2023, CNY bln Value in 2023, USD bln Year-on-year growth
Solar power Investment: power generation capacity 755 107 61%
Solar power Investment: manufacturing capacity 922 131 180%
Solar power Electricity generation 277 39 45%
Solar power Exports of components 533 75 42%
EVs Investment: manufacturing capacity 1,250 177 35%
EVs Investment: charging infrastructure 102 14 33%
EVs Production of vehicles 2,200 311 30%
Energy efficiency Investment: Industry 585 83 14%
Rail transportation Investment 761 108 7%
Rail transportation Transport of passengers and goods 964 136 39%
Energy storage Investment: Pumped hydro 334 47 38%
Energy storage Investment: Electrolyzers 88 12 85%
Energy storage Investment: Battery manufacturing 317 45 116%
Energy storage Investment: Grid-connected batteries 75 11 364%
Power grid Investment: transmission capacity 540 76 8%
Wind power Investment: power generation capacity, onshore 330 47 85%
Wind power Investment: power generation capacity, offshore 72 10 17%
Wind power Electricity generation 363 51 12%
Nuclear power Investment: power generation capacity 87 12 45%
Nuclear power Electricity generation 195 28 4%
Hydropower Investment: power generation capacity 80 11 -1%
Hydropower Electricity generation 512 72 -6%
Total Investments 6,297 891 39%
Total Production of goods and services 5,082 719 26%
Total Total GDP contribution 11,379 1,610 33%

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Solar power

Solar was the largest contributor to growth in China’s clean-technology economy in 2023. It recorded growth worth a combined 1tn yuan of new investment, goods and services, as its value grew from 1.5tn yuan in 2022 to 2.5tn yuan in 2023, an increase of 63% year-on-year.

While China has dominated the manufacturing and installations of solar panels for years, the growth of the industry in 2023 was unprecedented.

On the installation side, two major central government initiatives drove increased volumes, namely the “whole-county distributed solar” and the “clean energy base” programmes.

In addition, in response to the slowdown in the real-estate sector, the central government introduced a new policy at the start of 2023, to encourage the development of solar power industries on unused and existing construction lands.

Meanwhile, during the annual legislative meetings in the spring of 2023, 15 provinces prioritised solar industry development in their government work agendas.

Detailed data on the growth in China’s solar installations in the first 11 months of the year is shown in the figure below. (An estimated 200GW was added across the country during 2023 as a whole, more than doubling from the record of 87GW set in 2022.)

China installed record amounts of new solar capacity in 2023
Solar capacity newly installed in China in January to November each year, gigawatts. Source: National Energy Administration. Chart by Carbon Brief.

At the same time, China’s solar manufacturing industry recorded even stronger growth in 2023. China added 340 gigawatts (GW) of polysilicon production capacity and 300GW of wafer, cell and module production capacity in 2023, according to the International Energy Agency (IEA).

China experienced a significant increase in solar product exports in 2023. It exported 56GW of solar wafers, 32GW of cells and 178GW of modules in the first 10 months of the year, up 90%, 72% and 34% year-on-year respectively, according to the China Photovoltaic Industry Association. However, due to falling costs, the export value of these solar products only increased by 3%.

Within the overall export growth there were notable increases in China’s solar exports to countries along the “belt and road”, to southeast Asian nations and to several African countries.

For this analysis, the value of investments in new solar manufacturing capacity was estimated from the average capital costs of each step in the supply chain, taken from a compilation of reported project costs. This gave a significantly lower cost level than reported in other literature.

The analysis assumes that local government investment in facilities and infrastructure, as well as direct subsidies, added 30% to the reported private investment.

Investment in solar power was estimated by multiplying the newly added capacity from Bloomberg New Energy Finance by the unit investment costs for rooftop and utility-scale systems from China Photovoltaic Industry Association.

The value of exported solar power equipment was based on China Photovoltaic Industry Association data for 2022 and reported export growth for 2023.

The value of solar power equipment produced for domestic installation was not included in our analysis, to avoid overlap with the already-estimated investment costs for domestic solar projects.

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Wind power

China installed 41GW of wind power capacity in the first 11 months of 2023, an increase of 84% year-on-year in new additions. Some 60GW of onshore wind alone was due to be added across 2023, according to China Galaxy Securities, based on trends in previous years.

In addition, offshore wind capacity increased by 6GW across the whole of 2023.

Wind capacity added in the first 11 months of each year is shown in the figure below.

China installed record amounts of new wind capacity in 2023
Wind capacity newly installed in China in January to November each year, gigawatts. Source: National Energy Administration. Chart by Carbon Brief.

By the end of 2023, the first batch of “clean-energy bases” were expected to have been connected to the grid, contributing to the growth of onshore wind power, particularly in regions such as Inner Mongolia and other northwestern provinces. The second and third batches of clean-energy bases are set to continue driving the growth in onshore wind installations.

The market is also being driven by the “repowering” of older windfarms, supported by central government policies promoting the model of replacing smaller, older turbines with larger ones.

The potential for distributed wind power is also being explored, with initiatives such as the “villages wind utilisation action” being planned for active implementation.

Progress on offshore wind power construction in 2023 got off to a slow start. This is a reflection of a shift from nearshore to deeper offshore projects and from single projects to larger bases.

Offshore wind projects are also facing complex approval processes, involving multiple regulatory aspects, leading to uncertainties and slower-than-expected installations.

However, these issues are being addressed and the fourth quarter of 2023 saw a rebound in offshore wind construction, with 2024 expected to be a significant year for project deliveries.

Since 2021, new wind projects in China no longer receive subsidies from the central government.

Despite technological advancements reducing costs, increases in raw material prices have resulted in lower profit margins compared to the solar industry, leading to a smaller overall investment in wind power relative to solar power.

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Electric vehicles

China’s production of electric vehicles grew 36% year-on-year in 2023 to reach 9.6m units, a notable 32% of all vehicles produced in the country.

The vast majority of EVs produced in China are sold domestically, with sales growing strongly despite the phase-out of purchase subsidies announced in 2020 and completed at the end of 2022.

The national purchase subsidy for EVs was a central government finance instrument that had been fostering the EV market for 13 years. Its demise highlights a gradual shift from policy-driven to market-driven demand, making growth more likely to be sustained.

Sales of EVs made in China reached 9.5m units in 2023, a 38% year-on-year increase. Of this total, 8.3m were sold domestically, accounting for one-third of Chinese vehicle sales overall, while 1.2m EVs were exported, a 78% year-on-year increase.

The growth of “new energy vehicle” (NEV, mainly EVs) production and sales is shown in the figure below, which also shows their rising share of all vehicles sold.

Production and sales of new energy vehicles are surging in China
Production and sales of all vehicles and “new energy vehicles” (NEVs) in China, from National Bureau of Statistics and China Association of Automobile Manufacturers data via Wind Financial Terminal. NEVs include battery electric vehicles and plug-in hybrids. The right-hand side shows the share of NEVs out of all new vehicles sold, and the cumulative share over the preceding 10 years, as an indicator of the share of NEVs out of vehicles on the road. Chart by Carbon Brief.

China’s EV market is highly competitive, with at least 94 brands offering more than 300 models. Domestic brands account for 81% of the EV market, with BYD, Wuling, Chery, Changan and GAC among the top players.

Sustaining this growth has required major investment in manufacturing capacity.

This analysis estimates investments in EV manufacturing capacity based on a study by China International Association for Promotion of Science and Technology (CIAPST), which put investment in EV manufacturing at 0.7tn yuan in 2021.

The analysis assumes that EVs accounted for all of the growth in investment in vehicle manufacturing capacity reported by China’s national bureau of statistics (NBS) in 2022 and 2023, while investment in conventional vehicles was stable

This implies that investment in EV manufacturing reached CNY 1.2tn yuan in 2023. This is likely to be conservative, because production volumes for combustion engine vehicles are falling, implying a corresponding fall in investment.

This analysis accounts for the expansion of battery manufacturing capacity separately – alongside electricity storage – even though it is being driven by the growth in EV production.

The analysis estimates the value of EV production, including both domestic sales and exports, based on vehicle production volumes from NBS and the reported average EV price.

These EV prices include the value of batteries produced for EVs, so the value of battery production is not included separately.

Meanwhile, EV charging infrastructure is expanding rapidly, enabling the growth of the EV market. In 2022, more than 80% of the downtown areas of “first-tier” cities – megacities such as Beijing, Shanghai and Guangzhou – had installed charging stations, while 65% of the highway service zones nationwide provided charging points.

More than 3m new charging points were put into service during 2023, including 0.93m public and 2.45m private chargers. The accumulated total by November 2023 reached 8.6m charging points.

This analysis puts investment in EV charging infrastructure at 0.1tn yuan in 2023, based on an estimated average cost of 30,000 yuan per charging point.

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Energy efficiency

China’s energy intensity reduction targets have put pressure on industries to reduce their energy use per unit of output, spurring investment in more efficient processes.

For this analysis, the size of the market for energy service companies is used as a proxy for investment in energy efficiency in industries and buildings. This market grew to an estimated 0.6tn yuan in 2023, up from 0.5tn yuan in 2022, based on the revenue growth of the top 10 listed energy service companies ranked by market capitalization, for the first two or three quarters of 2023.

Over the past two decades, China’s energy service sector has experienced rapid expansion, growing from 1.8bn yuan in 2003 to 607bn yuan in 2021. Investment in the industrial service sector has been a key driver, accounting for about 60% of the total investment.

However, 2022 saw a significant downturn in the industrial energy service output, influenced by poor industrial growth, even though the building service sector continued expanding.

This analysis puts China’s investment in building energy efficiency at 80bn yuan per year. The country’s 14th five-year plan for energy savings in buildings and development of “green buildings” targets 80m square metres per year of renovated and newly built green buildings.

Compared with the almost 1,000m square metres of building space completed annually, this is a small percentage, and accordingly, the estimated value of total investments is modest.

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Electricity storage and hydrogen

China is rapidly scaling up electricity storage capacity. This has the potential to significantly reduce China’s reliance on coal- and gas-fired power plants to meet peaks in electricity demand and to facilitate the integration of larger amounts of variable wind and solar power into the grid.

The construction of pumped hydro storage capacity increased dramatically in the last year, with capacity under construction reaching 167GW, up from 120GW a year earlier.

This growth is illustrated in the figure below, which shows pumped hydro capacity under construction or in earlier stages of development at the end of 2023.

New pumped storage capacity in China, map.
Capacity of pumped hydro storage projects under construction or in earlier stages of development at the end of 2023, GW. Source: Global Energy Monitor global hydropower tracker.

Data from Global Energy Monitor identifies another 250GW in pre-construction stages, indicating that there is potential for the current surge in capacity to continue.

For this analysis, estimated annual investments in pumped storage are assumed to be proportional to the capacity under construction, while the reported construction cost of 6 yuan per watt is spread over three years. This implies that investment in 2023 amounted to 0.3tn yuan.

Construction of new battery manufacturing capacity was another major driver of investments, estimated at 0.3tn. This is based on the added capacity reported by the China Automotive Power Battery Industry Innovation Alliance and estimated average investment costs per unit of production capacity, taken from a compilation of publicly reported project costs.

Investment in electrolysers for “green” hydrogen production almost doubled year-on-year in 2023, reaching approximately 90bn yuan, based on estimates for the first half of the year from SWS Research. Analyst reports and compilations of projects published in news media put far larger numbers on China’s investments in green hydrogen, but these generally include the spending on electricity generation, which in this analysis is accounted for separately.

Investment in “new energy storage technologies” – a classification dominated by batteries – more than doubled in 2023, reaching 75bn yuan. This estimate is based on newly added capacity in 2023 reported by China Energy Storage Alliance and average investment costs calculated from National Energy Administration data.

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Railways

China’s ministry of transportation reported that investment in railway construction increased 7% in January–November 2023, implying investment of 0.8tn for the full year. This includes major investments in both passenger and freight transport. Investment in roads fell slightly, while investment in railways overall grew by 22%.

The share of freight volumes transported by rail in China has increased from 7.8% in 2017 to 9.2% in 2021, thanks to the rapid development of the railway network.

In 2022, some 155,000km of rail lines were in operation, of which 42,000km were high-speed. This is up from 146,000km of which 38,000km were high-speed in 2020.

The value of passenger and freight transportation on China’s railways increased by 39% year-on-year in 2023, reaching nearly 1tn yuan.

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Nuclear power

In 2023, 10 nuclear power units were approved in China, exceeding the anticipated rate of 6-8 units per year set by the China Nuclear Energy Association in 2020 for the second year in a row.

There are 77 nuclear power units that are currently operating or under construction in China, the second-largest total in the world. The total yearly investment in 2023 was estimated for this analysis at 87bn yuan, an increase of 45% year-on-year, based on data for January–November from the National Energy Administration.

The highest numbers of nuclear projects are located in coastal provinces with large concentrations of heavy industry, such as Guangdong, Fujian and Zhejiang, as the development of inland nuclear power projects remains stalled.

These provinces get around 20% of their electricity from nuclear power and continue to expand the technology as part of their efforts to cut emissions from their power sectors.

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Electricity grids

China’s power-sector development plans include a major increase in inter-provincial electricity transmission capacity and numerous long-distance transmission lines from west to east.

State Grid, the government-owned operator that runs the majority of the country’s electricity transmission network, has a target to raise inter-provincial power transmission capacity to 300GW by 2025 and 370GW by 2030, from 230GW in 2021. These plans play a major role in enabling the development of clean energy bases in western China.

China Electricity Council reported investments in electricity transmission at 0.5tn yuan in 2023, up 8% on year – just ahead of the level targeted by State Grid.

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Why clean energy took off in 2023

The clean-energy investment boom in 2023 is the outcome of a major pivot in China’s macroeconomic strategy. As this analysis shows, investment flowed from real estate into manufacturing – primarily in the clean-energy sector.

Total investment in the manufacturing industry increased by 9% year-on-year in 2023, while investment in the power and heat sectors climbed 23%. These increases were entirely due to growth in investment in clean energy, with investment in other areas falling. Therefore, China’s pivot into manufacturing was, in reality, a pivot to cleantech manufacturing.

The reason for this pivot was the contraction in the real-estate sector, where investment fell by 10% year-on-year in 2022 and another 9% in 2023. While this drop was in line with the government’s aim to address financial risks and excess leverage in the sector, it left a major hole in aggregate investment demand and in the revenue of China’s local governments.

Local governments were under pressure to attract investment, meaning that they offered generous subsidies and helped arrange financing.

The central government, for its part, eased private-sector access to financial markets and bank loans during the Covid-19 pandemic, facilitating the growth of the clean-energy sector.

Unlike the state-owned firms dominating traditional industries, the low-carbon sector, largely composed of private companies, gained access to previously constrained credit.

The significance of this economic shift is reflected not only in the figures revealed by this analysis but also in the language being used by Chinese media.

The three largest of clean-energy sectors by value, namely solar, storage and EVs, are being referred to as the “new three”, in contrast to the “old three” – clothing, home appliances and furniture.

This pivot was only possible because China’s clean-energy policies and wider industrial policy had built the foundation and scaled up these sectors so that they were primed for rapid growth.

The post-Covid credit “push” for clean energy growth also coincided with a demand “pull”, driven by falling costs and the increased competitiveness of low-carbon technologies against fossil fuels due to technological advancements.

Moreover, the announcement in 2020 of the 2060 carbon neutrality target had raised expectations and provided the political signal for the scale-up.

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What clean-energy growth means for China – and the world

Clean technology has been an important part of China’s energy policy, industrial strategy and climate change efforts for a long time. Last year marked the first time that the sector also became a key economic driver for the country. This has important implications.

China’s reliance on the clean-technology sectors to drive growth and achieve key economic targets boosts their economic and political importance. It could also support an accelerated energy transition.

The massive investment in clean technology manufacturing capacity and exports last year means that China has a major stake in the success of clean energy in the rest of the world and in building up export markets.

For example, China’s lead climate negotiator Su Wei recently highlighted that the goal of tripling renewable energy capacity globally, agreed in the COP28 UN climate summit in December, is a major benefit to China’s new energy industry. This will likely also mean that China’s efforts to finance and develop clean energy projects overseas will intensify.

Globally, China’s unprecedented clean-energy manufacturing boom has pushed down prices, with the cost of solar panels falling 42% year-on-year – a dramatic drop even compared to the historical average of around 17% per year, while battery prices fell by an even steeper 50%.

This, in turn, has encouraged much faster take-up of clean-energy technologies.

Projections of solar power deployment, in particular, have been upended. The IEA’s latest World Energy Outlook introduced an additional global energy scenario just to look at the implications, projecting that if global deployment of solar power and grid-connected batteries follows the expansion of manufacturing capacity, then global power-sector coal use and carbon dioxide emissions could be a sizable 15% lower than in the base case by 2030. Most of the additional deployment of solar in the IEA’s revised projections is in China.

Even with the increased deployment, however, there is a limit to how much solar power, batteries and other clean technology can be absorbed, as the manufacturing expansion has already saturated most of the global market.

This means that the expansion will run into overcapacity, if maintained. On the other hand, in order to keep driving growth in investment, clean-technology manufacturing would need to not only absorb as much capital as it did in 2023, but keep increasing investment year after year.

The clean-technology investment boom has provided a new lease of life to China’s investment-led economic model. There are new clean-energy technologies where there is scope for expansion, such as electrolysers.

Eventually, however, entirely new sectors will have to be found for investment – or China’s economic model will have to be transformed once there is nowhere left for investment to flow.

The manufacturing boom also cements China’s dominant position in clean-energy supply chains. Other countries therefore face a choice of whether they want to benefit from the low-cost supply of solar panels, batteries, EVs and other clean-energy technology from China.

The alternative is diversifying their supply and paying the cost of building new supply chains, in the form of subsidies and import tariffs required to enable domestic producers or producers in third countries to compete against Chinese suppliers. Such efforts would further increase supply and push down global prices even further.

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Analysis: Clean energy was top driver of China’s economic growth in 2023

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Greenhouse Gases

Heatwaves driving recent ‘surge’ in compound drought and heat extremes

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Drought and heatwaves occurring together – known as “compound” events – have “surged” across the world since the early 2000s, a new study shows. 

Compound drought and heat events (CDHEs) can have devastating effects, creating the ideal conditions for intense wildfires, such as Australia’s “Black Summer” of 2019-20 where bushfires burned 24m hectares and killed 33 people.

The research, published in Science Advances, finds that the increase in CDHEs is predominantly being driven by events that start with a heatwave.

The global area affected by such “heatwave-led” compound events has more than doubled between 1980-2001 and 2002-23, the study says.

The rapid increase in these events over the last 23 years cannot be explained solely by global warming, the authors note.

Since the late 1990s, feedbacks between the land and the atmosphere have become stronger, making heatwaves more likely to trigger drought conditions, they explain.

One of the study authors tells Carbon Brief that societies must pay greater attention to compound events, which can “cause severe impacts on ecosystems, agriculture and society”.

Compound events

CDHEs are extreme weather events where drought and heatwave conditions occur simultaneously – or shortly after each other – in the same region.

These events are often triggered by large-scale weather patterns, such as “blocking” highs, which can produce “prolonged” hot and dry conditions, according to the study.

Prof Sang-Wook Yeh is one of the study authors and a professor at the Ewha Womans University in South Korea. He tells Carbon Brief:

“When heatwaves and droughts occur together, the two hazards reinforce each other through land-atmosphere interactions. This amplifies surface heating and soil moisture deficits, making compound events more intense and damaging than single hazards.”

CDHEs can begin with either a heatwave or a drought.

The sequence of these extremes is important, the study says, as they have different drivers and impacts.

For example, in a CDHE where the heatwave was the precursor, increased direct sunshine causes more moisture loss from soils and plants, leading to a drought.

Conversely, in an event where the drought was the precursor, the lack of soil moisture means that less of the sun’s energy goes into evaporation and more goes into warming the Earth’s surface. This produces favourable conditions for heatwaves.

The study shows that the majority of CDHEs globally start out as a drought.

In recent years, there has been increasing focus on these events due to the devastating impact they have on agriculture, ecosystems and public health.

In Russia in the summer of 2010, a compound drought-heatwave event – and the associated wildfires – caused the death of nearly 55,000 people, the study notes.

Saint Basil's Cathedral, on Red Square, in Moscow, was affected by smog during the fires in Russia in the summer of 2010.
Saint Basil’s Cathedral, on Red Square, in Moscow, was affected by smog during the fires in Russia in the summer of 2010. Credit: ZUMA Press, Inc. / Alamy Stock Photo

The record-breaking Pacific north-west “heat dome” in 2021 triggered extreme drought conditions that caused “significant declines” in wheat yields, as well as in barley, canola and fruit production in British Columbia and Alberta, Canada, says the study.

Increasing events

To assess how CDHEs are changing, the researchers use daily reanalysis data to identify droughts and heatwaves events. (Reanalysis data combines past observations with climate models to create a historical climate record.) Then, using an algorithm, they analyse how these events overlap in both time and space.

The study covers the period from 1980 to 2023 and the world’s land surface, excluding polar regions where CDHEs are rare.

The research finds that the area of land affected by CDHEs has “increased substantially” since the early 2000s.

Heatwave-led events have been the main contributor to this increase, the study says, with their spatial extent rising 110% between 1980-2001 and 2002-23, compared to a 59% increase for drought-led events.

The map below shows the global distribution of CDHEs over 1980-2023. The charts show the percentage of the land surface affected by a heatwave-led CDHE (red) or a drought-led CDHE (yellow) in a given year (left) and relative increase in each CDHE type (right).

The study finds that CDHEs have occurred most frequently in northern South America, the southern US, eastern Europe, central Africa and south Asia.

Charts showing spatial and temporal occurrences over study period
Spatial and temporal occurrence of compound drought and heatwave events over the study period from 1980 to 2023. The map (top) shows CDHEs around the world, with darker colours indicating higher frequency of occurrence. The chart in the bottom left shows how much land surface was affected by a compound event in a given year, where red accounts for heatwave-led events, and yellow, drought-led events. The chart in the bottom right shows the relative increase of each CDHE type in 2002-23 compared with 1980-2001. Source: Kim et al. (2026)

Threshold passed

The authors explain that the increase in heatwave-led CDHEs is related to rising global temperatures, but that this does not tell the whole story.

In the earlier 22-year period of 1980-2001, the study finds that the spatial extent of heatwave-led CDHEs rises by 1.6% per 1C of global temperature rise. For the more-recent period of 2022-23, this increases “nearly eightfold” to 13.1%.

The change suggests that the rapid increase in the heatwave-led CDHEs occurred after the global average temperature “surpasse[d] a certain temperature threshold”, the paper says.

This threshold is an absolute global average temperature of 14.3C, the authors estimate (based on an 11-year average), which the world passed around the year 2000.

Investigating the recent surge in heatwave-leading CDHEs further, the researchers find a “regime shift” in land-atmosphere dynamics “toward a persistently intensified state after the late 1990s”.

In other words, the way that drier soils drive higher surface temperatures, and vice versa, is becoming stronger, resulting in more heatwave-led compound events.

Daily data

The research has some advantages over other previous studies, Yeh says. For instance, the new work uses daily estimations of CDHEs, compared to monthly data used in past research. This is “important for capturing the detailed occurrence” of these events, says Yeh.

He adds that another advantage of their study is that it distinguishes the sequence of droughts and heatwaves, which allows them to “better understand the differences” in the characteristics of CDHEs.

Dr Meryem Tanarhte is a climate scientist at the University Hassan II in Morocco, and Dr Ruth Cerezo Mota is a climatologist and a researcher at the National Autonomous University of Mexico. Both scientists, who were not involved in the study, agree that the daily estimations give a clearer picture of how CDHEs are changing.

Cerezo-Mota adds that another major contribution of the study is its global focus. She tells Carbon Brief that in some regions, such as Mexico and Africa, there is a lack of studies on CDHEs:

“Not because the events do not occur, but perhaps because [these regions] do not have all the data or the expertise to do so.”

However, she notes that the reanalysis data used by the study does have limitations with how it represents rainfall in some parts of the world.

Compound impacts

The study notes that if CDHEs continue to intensify – particularly events where heatwaves are the precursors – they could drive declining crop productivity, increased wildfire frequency and severe public health crises.

These impacts could be “much more rapid and severe as global warming continues”, Yeh tells Carbon Brief.

Tanarhte notes that these events can be forecasted up to 10 days ahead in many regions. Furthermore, she says, the strongest impacts can be prevented “through preparedness and adaptation”, including through “water management for agriculture, heatwave mitigation measures and wildfire mitigation”.

The study recommends reassessing current risk management strategies for these compound events. It also suggests incorporating the sequences of drought and heatwaves into compound event analysis frameworks “to enhance climate risk management”.

Cerezo-Mota says that it is clear that the world needs to be prepared for the increased occurrence of these events. She tells Carbon Brief:

“These [risk assessments and strategies] need to be carried out at the local level to understand the complexities of each region.”

The post Heatwaves driving recent ‘surge’ in compound drought and heat extremes appeared first on Carbon Brief.

Heatwaves driving recent ‘surge’ in compound drought and heat extremes

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DeBriefed 6 March 2026: Iran energy crisis | China climate plan | Bristol’s ‘pioneering’ wind turbine

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Welcome to Carbon Brief’s DeBriefed. 
An essential guide to the week’s key developments relating to climate change.

This week

Energy crisis

ENERGY SPIKE: US-Israeli attacks on Iran and subsequent counterattacks across the Middle East have sent energy prices “soaring”, according to Reuters. The newswire reported that the region “accounts for just under a third of global oil production and almost a fifth of gas”. The Guardian noted that shipping traffic through the strait of Hormuz, which normally ferries 20% of the world’s oil, “all but ground to a halt”. The Financial Times reported that attacks by Iran on Middle East energy facilities – notably in Qatar – triggered the “biggest rise in gas prices since Russia’s full-scale invasion of Ukraine”.

‘RISK’ AND ‘BENEFITS’: Bloomberg reported on increases in diesel prices in Europe and the US, speculating that rising fuel costs could be “a risk for president Donald Trump”. US gas producers are “poised to benefit from the big disruption in global supply”, according to CNBC. Indian government sources told the Economic Times that Russia is prepared to “fulfil India’s energy demands”. China Daily quoted experts who said “China’s energy security remains fundamentally unshaken”, thanks to “emergency stockpiles and a wide array of import channels”.

‘ESSENTIAL’ RENEWABLES: Energy analysts said governments should cut their fossil-fuel reliance by investing in renewables, “rather than just seeking non-Gulf oil and gas suppliers”, reported Climate Home News. This message was echoed by UK business secretary Peter Kyle, who said “doubling down on renewables” was “essential” amid “regional instability”, according to the Daily Telegraph.

China’s climate plan

PEAK COAL?: China has set out its next “five-year plan” at the annual “two sessions” meeting of the National People’s Congress, including its climate strategy out to 2030, according to the Hong Kong-based South China Morning Post. The plan called for China to cut its carbon emissions per unit of gross domestic product (GDP) by 17% from 2026 to 2030, which “may allow for continued increase in emissions given the rate of GDP growth”, reported Reuters. The newswire added that the plan also had targets to reach peak coal ​in the next five years and replace 30m tonnes per year of coal with renewables.

ACTIVE YET PRUDENT: Bloomberg described the new plan as “cautious”, stating that it “frustrat[es] hopes for tighter policy that would drive the nation to peak carbon emissions well before president Xi Jinping’s 2030 deadline”. Carbon Brief has just published an in-depth analysis of the plan. China Daily reported that the strategy “highlights measures to promote the climate targets of peaking carbon dioxide emissions before 2030”, which China said it would work towards “actively yet prudently”. 

Around the world

  • EU RULES: The European Commission has proposed new “made in Europe” rules to support domestic low-carbon industries, “against fierce competition from China”, reported Agence France-Presse. Carbon Brief examined what it means for climate efforts.
  • RECORD HEAT: The US National Oceanic and Atmospheric Administration has said there is a 50-60% chance that the El Niño weather pattern could return this year, amplifying the effect of global warming and potentially driving temperatures to “record highs”, according to Euronews.
  • FLAGSHIP FUND: The African Development Bank’s “flagship clean energy fund” plans to more than double its financing to $2.5bn for African renewables over the next two years, reported the Associated Press.
  • NO WITHDRAWAL: Vanuatu has defied US efforts to force the Pacific-island nation to drop a UN draft resolution calling on the world to implement a landmark International Court of Justice (ICJ) ruling on climate, according to the Guardian.

98

The number of nations that submitted their national reports on tackling nature loss to the UN on time – just half of the 196 countries that are part of the UN biodiversity treaty – according to analysis by Carbon Brief.


Latest climate research

  • Sea levels are already “much higher than assumed” in most assessments of the threat posed by sea-level rise, due to “inadequate” modelling assumptions | Nature
  • Accelerating human-caused global warming could see the Paris Agreement’s 1.5C limit crossed before 2030 | Geophysical Research Letters covered by Carbon Brief
  • Future “super El Niño events” could “significantly lower” solar power generation due to a reduction in solar irradiance in key regions, such as California and east China | Communications Earth & Environment

(For more, see Carbon Brief’s in-depth daily summaries of the top climate news stories on Monday, Tuesday, Wednesday, Thursday and Friday.)

Captured

UK greenhouse gas emissions in 2025

UK greenhouse gas emissions in 2025 fell to 54% below 1990 levels, the baseline year for its legally binding climate goals, according to new Carbon Brief analysis. Over the same period, data from the World Bank shows that the UK’s economy has expanded by 95%, meaning that emissions have been decoupling from growth.

Spotlight

Bristol’s ‘pioneering’ community wind turbine

Following the recent launch of the UK government’s local power plan, Carbon Brief visits one of the country’s community-energy success stories.

The Lawrence Weston housing estate is set apart from the main city of Bristol, wedged between the tree-lined grounds of a stately home and a sprawl of warehouses and waste incinerators. It is one of the most deprived areas in the city.

Yet, just across the M5 motorway stands a structure that has brought the spoils of the energy transition directly to this historically forgotten estate – a 4.2 megawatt (MW) wind turbine.

The turbine is owned by local charity Ambition Lawrence Weston and all the profits from its electricity sales – around £100,000 a year – go to the community. In the UK’s local power plan, it was singled out by energy secretary Ed Miliband as a “pioneering” project.

‘Sustainable income’

On a recent visit to the estate by Carbon Brief, Ambition Lawrence Weston’s development manager, Mark Pepper, rattled off the story behind the wind turbine.

In 2012, Pepper and his team were approached by the Bristol Energy Cooperative with a chance to get a slice of the income from a new solar farm. They jumped at the opportunity.

Austerity measures were kicking in at the time,” Pepper told Carbon Brief. “We needed to generate an income. Our own, sustainable income.”

With the solar farm proving to be a success, the team started to explore other opportunities. This began a decade-long process that saw them navigate the Conservative government’s “ban” on onshore wind, raise £5.5m in funding and, ultimately, erect the turbine in 2023.

Today, the turbine generates electricity equivalent to Lawrence Weston’s 3,000 households and will save 87,600 tonnes of carbon dioxide (CO2) over its lifetime.

Ambition Lawrence Weston’s Mark Pepper and the wind turbine.
Ambition Lawrence Weston’s Mark Pepper and the wind turbine. Artwork: Josh Gabbatiss

‘Climate by stealth’

Ambition Lawrence Weston’s hub is at the heart of the estate and the list of activities on offer is seemingly endless: birthday parties, kickboxing, a library, woodworking, help with employment and even a pop-up veterinary clinic. All supported, Pepper said, with the help of a steady income from community-owned energy.

The centre itself is kitted out with solar panels, heat pumps and electric-vehicle charging points, making it a living advertisement for the net-zero transition. Pepper noted that the organisation has also helped people with energy costs amid surging global gas prices.

Gesturing to the England flags dangling limply on lamp posts visible from the kitchen window, he said:

“There’s a bit of resentment around immigration and scarcity of materials and provision, so we’re trying to do our bit around community cohesion.”

This includes supper clubs and an interfaith grand iftar during the Muslim holy month of Ramadan.

Anti-immigration sentiment in the UK has often gone hand-in-hand with opposition to climate action. Right-wing politicians and media outlets promote the idea that net-zero policies will cost people a lot of money – and these ideas have cut through with the public.

Pepper told Carbon Brief he is sympathetic to people’s worries about costs and stressed that community energy is the perfect way to win people over:

“I think the only way you can change that is if, instead of being passive consumers…communities are like us and they’re generating an income to offset that.”

From the outset, Pepper stressed that “we weren’t that concerned about climate because we had other, bigger pressures”, adding:

“But, in time, we’ve delivered climate by stealth.”

Watch, read, listen

OIL WATCH: The Guardian has published a “visual guide” with charts and videos showing how the “escalating Iran conflict is driving up oil and gas prices”.

MURDER IN HONDURAS: Ten years on from the murder of Indigenous environmental justice advocate Berta Cáceres, Drilled asked why Honduras is still so dangerous for environmental activists.

TALKING WEATHER: A new film, narrated by actor Michael Sheen and titled You Told Us To Talk About the Weather, aimed to promote conversation about climate change with a blend of “poetry, folk horror and climate storytelling”.

Coming up

Pick of the jobs

DeBriefed is edited by Daisy Dunne. Please send any tips or feedback to debriefed@carbonbrief.org.

This is an online version of Carbon Brief’s weekly DeBriefed email newsletter. Subscribe for free here.

The post DeBriefed 6 March 2026: Iran energy crisis | China climate plan | Bristol’s ‘pioneering’ wind turbine appeared first on Carbon Brief.

DeBriefed 6 March 2026: Iran energy crisis | China climate plan | Bristol’s ‘pioneering’ wind turbine

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Q&A: What does China’s 15th ‘five-year plan’ mean for climate change?

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China’s leadership has published a draft of its 15th five-year plan setting the strategic direction for the nation out to 2030, including support for clean energy and energy security.

The plan sets a target to cut China’s “carbon intensity” by 17% over the five years from 2026-30, but also changes the basis for calculating this key climate metric.

The plan continues to signal support for China’s clean-energy buildout and, in general, contains no major departures from the country’s current approach to the energy transition.

The government reaffirms support for several clean-energy industries, ranging from solar and electric vehicles (EVs) through to hydrogen and “new-energy” storage.

The plan also emphasises China’s willingness to steer climate governance and be seen as a provider of “global public goods”, in the form of affordable clean-energy technologies.

However, while the document says it will “promote the peaking” of coal and oil use, it does not set out a timeline and continues to call for the “clean and efficient” use of coal.

This shows that tensions remain between China’s climate goals and its focus on energy security, leading some analysts to raise concerns about its carbon-cutting ambition.

Below, Carbon Brief outlines the key climate change and energy aspects of the plan, including targets for carbon intensity, non-fossil energy and forestry.

Note: this article is based on a draft published on 5 March and will be updated if any significant changes are made in the final version of the plan, due to be released at the close next week of the “two sessions” meeting taking place in Beijing.

What is China’s 15th five-year plan?

Five-year plans are one of the most important documents in China’s political system.

Addressing everything from economic strategy to climate policy, they outline the planned direction for China’s socio-economic development in a five-year period. The 15th five-year plan covers 2026-30.

These plans include several “main goals”. These are largely quantitative indicators that are seen as particularly important to achieve and which provide a foundation for subsequent policies during the five-year period.

The table below outlines some of the key “main goals” from the draft 15th five-year plan.

Category Indicator Indicator in 2025 Target by 2030 Cumulative target over 2026-2030 Characteristic
Economic development Gross domestic product (GDP) growth (%) 5 Maintained within a reasonable range and proposed annually as appropriate. Anticipatory
‘Green and low-carbon Reduction in CO2 emissions per unit of GDP (%) 17.7 17 Binding
Share of non-fossil energy in total energy consumption (%) 21.7 25 Binding
Security guarantee Comprehensive energy production
capacity (100m tonnes of
standard coal equivalent)
51.3 58 Binding

Select list of targets highlighted in the “main goals” section of the draft 15th five-year plan. Source: Draft 15th five-year plan.

Since the 12th five-year plan, covering 2011-2015, these “main goals” have included energy intensity and carbon intensity as two of five key indicators for “green ecology”.

The previous five-year plan, which ran from 2021-2025, introduced the idea of an absolute “cap” on carbon dioxide (CO2) emissions, although it did not provide an explicit figure in the document. This has been subsequently addressed by a policy on the “dual-control of carbon” issued in 2024.

The latest plan removes the energy-intensity goal and elevates the carbon-intensity goal, but does not set an absolute cap on emissions (see below).

It covers the years until 2030, before which China has pledged to peak its carbon emissions. (Analysis for Carbon Brief found that emissions have been “flat or falling” since March 2024.)

The plans are released at the two sessions, an annual gathering of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC). This year, it runs from 4-12 March.

The plans are often relatively high-level, with subsequent topic-specific five-year plans providing more concrete policy guidance.

Policymakers at the National Energy Agency (NEA) have indicated that in the coming years they will release five sector-specific plans for 2026-2030, covering topics such as the “new energy system”, electricity and renewable energy.

There may also be specific five-year plans covering carbon emissions and environmental protection, as well as the coal and nuclear sectors, according to analysts.

Other documents published during the two sessions include an annual government work report, which outlines key targets and policies for the year ahead.

The gathering is attended by thousands of deputies – delegates from across central and local governments, as well as Chinese Communist party members, members of other political parties, academics, industry leaders and other prominent figures.

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What does the plan say about China’s climate action?

Achieving China’s climate targets will remain a key driver of the country’s policies in the next five years, according to the draft 15th five-year plan.

It lists the “acceleration” of China’s energy transition as a “major achievement” in the 14th five-year plan period (2021-2025), noting especially how clean-power capacity had overtaken fossil fuels.

The draft says China will “actively and steadily advance and achieve carbon peaking”, with policymakers continuing to strike a balance between building a “green economy” and ensuring stability.

Climate and environment continues to receive its own chapter in the plan. However, the framing and content of this chapter has shifted subtly compared with previous editions, as shown in the table below. For example, unlike previous plans, the first section of this chapter focuses on China’s goal to peak emissions.

11th five-year plan (2006-2010) 12th five-year plan (2011-2015) 13th five-year plan (2016-2020) 14th five-year plan (2021-2025) 15th five-year plan (2026-2030)
Chapter title Part 6: Build a resource-efficient and environmentally-friendly society Part 6: Green development, building a resource-efficient and environmentally friendly society Part 10: Ecosystems and the environment Part 11: Promote green development and facilitate the harmonious coexistence of people and nature Part 13: Accelerating the comprehensive green transformation of economic and social development to build a beautiful China
Sections Developing a circular economy Actively respond to global climate change Accelerate the development of functional zones Improve the quality and stability of ecosystems Actively and steadily advancing and achieving carbon peaking
Protecting and restoring natural ecosystems Strengthen resource conservation and management Promote economical and intensive resource use Continue to improve environmental quality Continuously improving environmental quality
Strengthening environmental protection Vigorously develop the circular economy Step up comprehensive environmental governance Accelerate the green transformation of the development model Enhancing the diversity, stability, and sustainability of ecosystems
Enhancing resource management Strengthen environmental protection efforts Intensify ecological conservation and restoration Accelerating the formation of green production and lifestyles
Rational utilisation of marine and climate resources Promoting ecological conservation and restoration Respond to global climate change
Strengthen the development of water conservancy and disaster prevention and mitigation systems Improve mechanisms for ensuring ecological security
Develop green and environmentally-friendly industries

Title and main sections of the climate and environment-focused chapters in the last five five-year plans. Source: China’s 11th, 12th, 13th, 14th and 15th five-year plans.

The climate and environment chapter in the latest plan calls for China to “balance [economic] development and emission reduction” and “ensure the timely achievement of carbon peak targets”.

Under the plan, China will “continue to pursue” its established direction and objectives on climate, Prof Li Zheng, dean of the Tsinghua University Institute of Climate Change and Sustainable Development (ICCSD), tells Carbon Brief.

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What is China’s new CO2 intensity target?

In the lead-up to the release of the plan, analysts were keenly watching for signals around China’s adoption of a system for the “dual-control of carbon”.

This would combine the existing targets for carbon intensity – the CO2 emissions per unit of GDP – with a new cap on China’s total carbon emissions. This would mark a dramatic step for the country, which has never before set itself a binding cap on total emissions.

Policymakers had said last year that this framework would come into effect during the 15th five-year plan period, replacing the previous system for the “dual-control of energy”.

However, the draft 15th five-year plan does not offer further details on when or how both parts of the dual-control of carbon system will be implemented. Instead, it continues to focus on carbon intensity targets alone.

Looking back at the previous five-year plan period, the latest document says China had achieved a carbon-intensity reduction of 17.7%, just shy of its 18% goal.

This is in contrast with calculations by Lauri Myllyvirta, lead analyst at the Centre for Research on Energy and Clean Air (CREA), which had suggested that China had only cut its carbon intensity by 12% over the past five years.

At the time it was set in 2021, the 18% target had been seen as achievable, with analysts telling Carbon Brief that they expected China to realise reductions of 20% or more.

However, the government had fallen behind on meeting the target.

Last year, ecology and environment minister Huang Runqiu attributed this to the Covid-19 pandemic, extreme weather and trade tensions. He said that China, nevertheless, remained “broadly” on track to meet its 2030 international climate pledge of reducing carbon intensity by more than 65% from 2005 levels.

Myllyvirta tells Carbon Brief that the newly reported figure showing a carbon-intensity reduction of 17.7% is likely due to an “opportunistic” methodological revision. The new methodology now includes industrial process emissions – such as cement and chemicals – as well as the energy sector.

(This is not the first time China has redefined a target, with regulators changing the methodology for energy intensity in 2023.)

For the next five years, the plan sets a target to reduce carbon intensity by 17%, slightly below the previous goal.

However, the change in methodology means that this leaves space for China’s overall emissions to rise by “3-6% over the next five years”, says Myllyvirta. In contrast, he adds that the original methodology would have required a 2% fall in absolute carbon emissions by 2030.

The dashed lines in the chart below show China’s targets for reducing carbon intensity during the 12th, 13th, 14th and 15th five-year periods, while the bars show what was achieved under the old (dark blue) and new (light blue) methodology.

China reports meeting its latest carbon-intensity target after a change in methodology.
Dashed lines: China’s carbon-intensity targets during the 12th, 13th, 14th and 15th five-year plan periods. Bars: China’s achieved carbon-intensity reductions according to either the old methodology (dark blue) and the new one (light blue). The achieved reductions during the 12th and 13th five-year plans are from contemporaneous government statistics and may be revised in future. The reduction figures for the 14th five-year plan period are sourced from government statistics for the new methodology and analysis by CREA under the old methodology. Sources: Five-year plans and Carbon Brief.

The carbon-intensity target is the “clearest signal of Beijing’s climate ambition”, says Li Shuo, director at the Asia Society Policy Institute’s (ASPI) China climate hub.

It also links directly to China’s international pledge – made in 2021 – to cut its carbon intensity to more than 65% below 2005 levels by 2030.

To meet this pledge under the original carbon-intensity methodology, China would have needed to set a target of a 23% reduction within the 15th five-year plan period. However, the country’s more recent 2035 international climate pledge, released last year, did not include a carbon-intensity target.

As such, ASPI’s Li interprets the carbon-intensity target in the draft 15th five-year plan as a “quiet recalibration” that signals “how difficult the original 2030 goal has become”.

Furthermore, the 15th five-year plan does not set an absolute emissions cap.

This leaves “significant ambiguity” over China’s climate plans, says campaign group 350 in a press statement reacting to the draft plan. It explains:

“The plan was widely expected to mark a clearer transition from carbon-intensity targets toward absolute emissions reductions…[but instead] leaves significant ambiguity about how China will translate record renewable deployment into sustained emissions cuts.”

Myllyvirta tells Carbon Brief that this represents a “continuation” of the government’s focus on scaling up clean-energy supply while avoiding setting “strong measurable emission targets”.

He says that he would still expect to see absolute caps being set for power and industrial sectors covered by China’s emissions trading scheme (ETS). In addition, he thinks that an overall absolute emissions cap may still be published later in the five-year period.

Despite the fact that it has yet to be fully implemented, the switch from dual-control of energy to dual-control of carbon represents a “major policy evolution”, Ma Jun, director of the Institute of Public and Environmental Affairs (IPE), tells Carbon Brief. He says that it will allow China to “provide more flexibility for renewable energy expansion while tightening the net on fossil-fuel reliance”.

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Does the plan encourage further clean-energy additions?

“How quickly carbon intensity is reduced largely depends on how much renewable energy can be supplied,” says Yao Zhe, global policy advisor at Greenpeace East Asia, in a statement.

The five-year plan continues to call for China’s development of a “new energy system that is clean, low-carbon, safe and efficient” by 2030, with continued additions of “wind, solar, hydro and nuclear power”.

In line with China’s international pledge, it sets a target for raising the share of non-fossil energy in total energy consumption to 25% by 2030, up from just under 21.7% in 2025.

The development of “green factories” and “zero-carbon [industrial] parks” has been central to many local governments’ strategies for meeting the non-fossil energy target, according to industry news outlet BJX News. A call to build more of these zero-carbon industrial parks is listed in the five-year plan.

Prof Pan Jiahua, dean of Beijing University of Technology’s Institute of Ecological Civilization, tells Carbon Brief that expanding demand for clean energy through mechanisms such as “green factories” represents an increasingly “bottom-up” and “market-oriented” approach to the energy transition, which will leave “no place for fossil fuels”.

He adds that he is “very much sure that China’s zero-carbon process is being accelerated and fossil fuels are being driven out of the market”, pointing to the rapid adoption of EVs.

The plan says that China will aim to double “non-fossil energy” in 10 years – although it does not clarify whether this means their installed capacity or electricity generation, or what the exact starting year would be.

Research has shown that doubling wind and solar capacity in China between 2025-2035 would be “consistent” with aims to limit global warming to 2C.

While the language “certainly” pushes for greater additions of renewable energy, Yao tells Carbon Brief, it is too “opaque” to be a “direct indication” of the government’s plans for renewable additions.

She adds that “grid stability and healthy, orderly competition” is a higher priority for policymakers than guaranteeing a certain level of capacity additions.

China continues to place emphasis on the need for large-scale clean-energy “bases” and cross-regional power transmission.

The plan says China must develop “clean-energy bases…in the three northern regions” and “integrated hydro-wind-solar complexes” in south-west China.

It specifically encourages construction of “large-scale wind and solar” power bases in desert regions “primarily” for cross-regional power transmission, as well as “major hydropower” projects, including the Yarlung Tsangpo dam in Tibet.

As such, the country should construct “power-transmission corridors” with the capacity to send 420 gigawatts (GW) of electricity from clean-energy bases in western provinces to energy-hungry eastern provinces by 2030, the plan says.

State Grid, China’s largest grid operator, plans to install “another 15 ultra-high voltage [UHV] transmission ​lines” by 2030, reports Reuters, up from the 45 UHV lines built by last year.

Below are two maps illustrating the interlinkages between clean-energy bases in China in the 15th (top) and 14th (bottom) five-year plan periods.

The yellow dotted areas represent clean energy bases, while the arrows represent cross-regional power transmission. The blue wind-turbine icons represent offshore windfarms and the red cooling tower icons represent coastal nuclear plants.

Maps showing layout of key energy projects in China during 2026-2030 (top) and 2021-2025 (bottom). Source: Chinese government’s 15th five-year plan and 14th five-year plan.
Maps showing layout of key energy projects in China during 2026-2030 (top) and 2021-2025 (bottom). Source: Chinese government’s 15th five-year plan and 14th five-year plan.
Maps showing layout of key energy projects in China during 2026-2030 (top) and 2021-2025 (bottom). Source: Chinese government’s 15th five-year plan and 14th five-year plan.

The 15th five-year plan map shows a consistent approach to the 2021-2025 period. As well as power being transmitted from west to east, China plans for more power to be sent to southern provinces from clean-energy bases in the north-west, while clean-energy bases in the north-east supply China’s eastern coast.

It also maps out “mutual assistance” schemes for power grids in neighbouring provinces.

Offshore wind power should reach 100GW by 2030, while nuclear power should rise to 110GW, according to the plan.

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What does the plan signal about coal?

The increased emphasis on grid infrastructure in the draft 15th five-year plan reflects growing concerns from energy planning officials around ensuring China’s energy supply.

Ren Yuzhi, director of the NEA’s development and planning department, wrote ahead of the plan’s release that the “continuous expansion” of China’s energy system has “dramatically increased its complexity”.

He said the NEA felt there was an “urgent need” to enhance the “secure and reliable” replacement of fossil-fuel power with new energy sources, as well as to ensure the system’s “ability to absorb them”.

Meanwhile, broader concerns around energy security have heightened calls for coal capacity to remain in the system as a “ballast stone”.

The plan continues to support the “clean and efficient utilisation of fossil fuels” and does not mention either a cap or peaking timeline for coal consumption.

Xi had previously told fellow world leaders that China would “strictly control” coal-fired power and phase down coal consumption in the 15th five-year plan period.

The “geopolitical situation is increasing energy security concerns” at all levels of government, said the Institute for Global Decarbonization Progress in a note responding to the draft plan, adding that this was creating “uncertainty over coal reduction”.

Ahead of its publication, there were questions around whether the plan would set a peaking deadline for oil and coal. An article posted by state news agency Xinhua last month, examining recommendations for the plan from top policymakers, stated that coal consumption would plateau from “around 2027”, while oil would peak “around 2026”.

However, the plan does not lay out exact years by which the two fossil fuels should peak, only saying that China will “promote the peaking of coal and oil consumption”.

There are similarly no mentions of phasing out coal in general, in line with existing policy.

Nevertheless, there is a heavy emphasis on retrofitting coal-fired power plants. The plan calls for the establishment of “demonstration projects” for coal-plant retrofitting, such as through co-firing with biomass or “green ammonia”.

Such retrofitting could incentivise lower utilisation of coal plants – and thus lower emissions – if they are used to flexibly meet peaks in demand and to cover gaps in clean-energy output, instead of providing a steady and significant share of generation.

The plan also calls for officials to “fully implement low-carbon retrofitting projects for coal-chemical industries”, which have been a notable source of emissions growth in the past year.

However, the coal-chemicals sector will likely remain a key source of demand for China’s coal mining industry, with coal-to-oil and coal-to-gas bases listed as a “key area” for enhancing the country’s “security capabilities”.

Meanwhile, coal-fired boilers and industrial kilns in the paper industry, food processing and textiles should be replaced with “clean” alternatives to the equivalent of 30m tonnes of coal consumption per year, it says.

“China continues to scale up clean energy at an extraordinary pace, but the plan still avoids committing to strong measurable constraints on emissions or fossil fuel use”, says Joseph Dellatte, head of energy and climate studies at the Institut Montaigne. He adds:

“The logic remains supply-driven: deploy massive amounts of clean energy and assume emissions will eventually decline.”

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How will China approach global climate governance in the next five years?

Meanwhile, clean-energy technologies continue to play a role in upgrading China’s economy, with several “new energy” sectors listed as key to its industrial policy.

Named sectors include smart EVs, “new solar cells”, new-energy storage, hydrogen and nuclear fusion energy.

“China’s clean-technology development – rather than traditional administrative climate controls – is increasingly becoming the primary driver of emissions reduction,” says ASPI’s Li. He adds that strengthening China’s clean-energy sectors means “more closely aligning Beijing’s economic ambitions with its climate objectives”.

Analysis for Carbon Brief shows that clean energy drove more than a third of China’s GDP growth in 2025, representing around 11% of China’s whole economy.

The continued support for these sectors in the draft five-year plan comes as the EU outlined its own measures intended to limit China’s hold on clean-energy industries, driven by accusations of “unfair competition” from Chinese firms.

China is unlikely to crack down on clean-tech production capacity, Dr Rebecca Nadin, director of the Centre for Geopolitics of Change at ODI Global, tells Carbon Brief. She says:

“Beijing is treating overcapacity in solar and smart EVs as a strategic choice, not a policy error…and is prepared to pour investment into these sectors to cement global market share, jobs and technological leverage.”

Dellatte echoes these comments, noting that it is “striking” that the plan “barely addresses the issue of industrial overcapacity in clean technologies”, with the focus firmly on “scaling production and deployment”.

At the same time, China is actively positioning itself to be a prominent voice in climate diplomacy and a champion of proactive climate action.

This is clear from the first line in a section on providing “global public goods”. It says:

“As a responsible major country, China will play a more active role in addressing global challenges such as climate change.”

The plan notes that China will “actively participate in and steer [引领] global climate governance”, in line with the principle of “common,but differentiated responsibilities”.

This echoes similar language from last year’s government work report, Yao tells Carbon Brief, demonstrating a “clear willingness” to guide global negotiations. But she notes that this “remains an aspiration that’s yet to be made concrete”. She adds:

“China has always favored collective leadership, so its vision of leadership is never a lone one.”

The country will “deepen south-south cooperation on climate change”, the plan says. In an earlier section on “opening up”, it also notes that China will explore “new avenues for collaboration in green development” with global partners as part of its “Belt and Road Initiative”.

China is “doubling down” on a narrative that it is a “responsible major power” and “champion of south-south climate cooperation”, Nadin says, such as by “presenting its clean‑tech exports and finance as global public goods”. She says:

“China will arrive at future COPs casting itself as the indispensable climate leader for the global south…even though its new five‑year plan still puts growth, energy security and coal ahead of faster emissions cuts at home.”

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What else does the plan cover?

The impact of extreme weather – particularly floods – remains a key concern in the plan.

China must “refine” its climate adaptation framework and “enhance its resilience to climate change, particularly extreme-weather events”, it says.

China also aims to “strengthen construction of a national water network” over the next five years in order to help prevent floods and droughts.

An article published a few days before the plan in the state-run newspaper China Daily noted that, “as global warming intensifies, extreme weather events – including torrential rains, severe convective storms, and typhoons – have become more frequent, widespread and severe”.

The plan also touches on critical minerals used for low-carbon technologies. These will likely remain a geopolitical flashpoint, with China saying it will focus during the next five years on “intensifying” exploration and “establishing” a reserve for critical minerals. This reserve will focus on “scarce” energy minerals and critical minerals, as well as other “advantageous mineral resources”.

Dellatte says that this could mean the “competition in the energy transition will increasingly be about control over mineral supply chains”.

Other low-carbon policies listed in the five-year plan include expanding coverage of China’s mandatory carbon market and further developing its voluntary carbon market.

China will “strengthen monitoring and control” of non-CO2 greenhouse gases, the plan says, as well as implementing projects “targeting methane, nitrous oxide and hydrofluorocarbons” in sectors such as coal mining, agriculture and chemicals.

This will create “capacity” for reducing emissions by 30m tonnes of CO2 equivalent, it adds.

Meanwhile, China will develop rules for carbon footprint accounting and push for internationally recognised accounting standards.

It will enhance reform of power markets over the next five years and improve the trading mechanism for green electricity certificates.

It will also “promote” adoption of low-carbon lifestyles and decarbonisation of transport, as well as working to advance electrification of freight and shipping.

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Q&A: What does China’s 15th ‘five-year plan’ mean for climate change?

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