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In 2023, wind and solar combined added more new energy to the global mix than any other source, for the first time in history, according to Carbon Brief analysis of newly released data.

Nevertheless, record global demand for energy saw coal and oil use also reaching new highs last year, the Energy Institute Statistical Review of World Energy 2024 finds.

This pushed global carbon dioxide (CO2) emissions to another record in 2023, the world’s first full year with no impact from the coronavirus pandemic, the data shows.

Key figures from the report include:

  • Global energy demand reached a record high of 620 exajoules (EJ) in 2023, with annual growth of 2.0%, slightly above the 1.5% per year average for the last decade.
  • Wind and solar together were the largest source of new energy in 2023, adding 4.9EJ or 40% of the increase overall. The rest of the net increase came from oil (+4.8EJ, 39% of the increase), coal (+2.5EJ, 20%), nuclear (+0.4EJ, 4%) and other non-hydro renewables (+0.5EJ, 4%), while gas stayed flat and hydro declined (-0.9EJ, -8%).
  • Global energy use from coal grew 1.6% year-on-year to a record high of 164EJ, passing the previous record of 162EJ, set a decade earlier in 2014.
  • Global energy use from oil grew 2.5% to a record high of 196EJ, comfortably above the previous high of 193EJ set in 2019, before the coronavirus pandemic.
  • Global energy use from gas was unchanged at 144EJ. It has now flatlined for two years since the global energy crisis, due to Russia cutting off gas supplies to Europe.
  • Global electricity generation from coal grew by 189 terawatt hours (TWh, 1.8%) year-on-year to a record high of 10,513TWh. This was despite wind and solar adding a record 537TWh of new generation, up a combined 15.7% year-on-year to 3,967TWh.
  • The new highs for coal and oil use drove global emissions to another record, with releases from fossil fuel burning, industrial processes, methane and flaring topping 40bn tonnes of carbon dioxide equivalent (GtCO2e) for the first time.

With global temperatures inching closer to the 1.5C limit, time is running out to peak and then decline emissions in order to avoid dangerous levels of warming. The new figures show the world is still going in the wrong direction, with new records for coal, oil and CO2 emissions.

Yet there are hints that, beyond today’s data for 2023, the world could be turning a corner, as emissions from China – and the global electricity system – may already have peaked.

This is the second edition of the statistical review published by the Energy Institute. Carbon Brief covered earlier editions, published by oil major BP, in 2015, 2016, 2017, 2018, 2019 and 2020.

Wind and solar make history

One of the most striking details in this year’s report is that wind and solar, when combined, added more new energy to the global mix in 2023 than any other source, as shown in the figure below.

The combined 4.9EJ of new energy from wind and solar in 2023 accounted for 40% of the overall increase in global demand, ahead of oil (39%) and coal (20%).

This is the first time in history that these newer forms of renewable energy have outpaced each of the fossil fuels, which remain the world’s dominant sources of energy.

Annual change in global energy demand in 2023, by source, exajoules.
Annual change in global energy demand in 2023, by source, exajoules. Source: Carbon Brief analysis of Energy Institute Statistical Review of World Energy 2024. Chart by Carbon Brief.

Still, the significant increases in demand for energy from oil (+4.8EJ) and coal (+2.5EJ), shown in the figure above, resulted in yet another increase in global CO2 emissions.

The drop in hydro output – also shown above – resulted from major droughts around the world in 2023, particularly in China. This shortfall was largely met by increased coal power.

Along with the continued rapid expansion of wind and solar, a recovery in hydro generation from last year’s lows is expected to contribute to a peak in emissions from the global power sector.

While global demand for oil and gas is not expected to peak until later this decade, reductions in coal use could still drive a near-term peak in global CO2 emissions.

Record highs for coal and oil

The record 4.9EJ of new energy added by wind and solar in 2023 marks a continuation of their rapid growth over the past decade, shown in the figure below.

In combination, wind and solar now contribute 37EJ to the global energy system, up 15% year-on-year. Their combined output has grown at an average 17% per year for the past decade, taking them from a total of just 8EJ in 2013 to the 2023 figure of 37EJ.

As the figure below shows, wind and solar overtook nuclear power in 2021 and, in combination, they are likely to overtake hydropower this year.

Still, it is clear from the figure that the global energy system remains heavily reliant on fossil fuels.

At a new record of 196EJ in 2023, oil is the world’s largest source of energy, accounting for nearly a third of the total (32%) energy mix and having grown nearly every year for the past half-century.

Coal is in second place, at 164EJ in 2023 or 26% of the mix. While this, too, marks a new record, global coal demand has been flat for the past decade. Indeed, at one point it seemed that the previous 2014 record of 162EJ might have marked a lasting peak for the fuel.

Global electricity generation by fuel, terawatt hours, 1990-2023.
Global electricity generation by fuel, terawatt hours, 1990-2023. Source: Energy Institute Statistical Review of World Energy 2024. Chart by Carbon Brief.

Notably, the figure above shows that global gas demand has now flatlined for the past two years. While the future trajectory for the fuel remains uncertain, this recent trend illustrates why the International Energy Agency (IEA) said in late 2022 that the “golden age of gas” had been brought to an end by the global energy crisis, following Russia’s invasion of Ukraine earlier that year.

In total, fossil fuels met some 81.5% of global primary energy demand in 2023, as shown in the figure below. While this is a record low, it is only around 4 percentage points lower than a decade earlier – and 5 percentage points below the level seen in 1990.

Share of global primary energy demand from fossil fuels and clean energy, %, 1965-2023.
Share of global primary energy demand from fossil fuels and clean energy, %, 1965-2023. Source: Energy Institute Statistical Review of World Energy 2024. Chart by Carbon Brief.

Energy Institute chief executive Nick Wayth told a pre-release press briefing that the data could be interpreted to suggest that the global energy transition “has not even started”:

“At the global level, today’s new data provides little encouragement in terms of global climate change mitigation. Clean energy is still not even meeting the entirety of demand growth and therefore at a global level not displacing fossil fuels. Arguably, the transition has not even started.”

However, this interpretation hides a “lopsided” picture for different parts of the world, Wayth said. “Fossil demand is likely to be peaking” in the major economies of Europe and the US, he explained, even as countries in the Global South are “still carbonising”.

Electricity system in flux

To date, the energy transition has had the most dramatic impact on the global electricity system, as the figure below shows. Wind and solar generation has grown from a combined 774TWh in 2013 to nearly 4,000TWh in 2023 – more than quintupling in a decade.

Together, wind and solar accounted for 13% of global electricity supplies in 2023, up from 3% a decade earlier. Still, rapidly-rising demand for electricity, which is expected to accelerate as heat, transport and industry are increasingly electrified, means that coal power reached a record high of 10,513TWh in 2023.This cements its position as the single-largest contributor to the mix.

Global primary energy demand by fuel, exajoules, 1965-2023.
Global primary energy demand by fuel, exajoules, 1965-2023. Source: Energy Institute Statistical Review of World Energy 2024. Chart by Carbon Brief.

Low-carbon sources of clean energy, including nuclear and renewables, now make up a record high 39% of global electricity supplies, ahead of coal at 35%. With gas making up a further 23% of the mix, the majority of the world’s electricity is still being generated with fossil fuels.

The expansion of wind and solar is expected to continue and even accelerate – particularly if the global goal of tripling renewable capacity by 2030 is to be met.

Combined with a recovery in global hydropower output, following a series of major droughts, this could force fossil fuel power into the beginning of structural decline in 2024.

Record CO2 emissions

Taking all of the pieces together, the record for coal and oil use along with flat demand for gas means global CO2 emissions reached a new high in 2023, the Energy Institute’s data shows. This is despite the record amounts of new energy added by wind and solar power.

In total, global emissions from fossil fuels, industrial processes, methane and flaring breached 40GtCO2e for the first time in 2023, as shown in the figure below.

China’s emissions grew by 708m tonnes of CO2e (MtCO2e, 6%) year-on-year, accounting for 85% of the net increase globally (829MtCO2e). India’s emissions also grew strongly, up 257MtCO2e (9%), while emissions in the US and EU fell by 140MtCO2 (2.7%) and 188MtCO2e (6.6%) respectively.

Global emissions from energy use, industrial processes, methane and flaring, billion tonnes of CO2 equivalent, 1990-2023.
Global emissions from energy use, industrial processes, methane and flaring, billion tonnes of CO2 equivalent, 1990-2023. Source: Energy Institute Statistical Review of World Energy 2024. Chart by Carbon Brief.

The Energy Institute estimate confirms earlier analysis from the Global Carbon Project (GCP) and the IEA, both of which found fossil fuel CO2 emissions had reached a new record high in 2023.

However, GCP estimates including CO2 emissions from land use change put 2023 just below the record set in 2019, with the total having been roughly flat for a decade.

Looking ahead, the key question for global emissions is whether China has already peaked and, if so, how quickly its emissions begin to fall. If it has, then it would add to continued emissions reductions in developed countries and likely outweigh increases elsewhere.

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EPA move shows urgent need for congressional climate action

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FOR IMMEDIATE RELEASE

CCLlonglogo for PRs

EPA move shows urgent need for congressional climate action

February 12, 2026 – The EPA has finalized its proposal to rescind its 2009 determination that climate pollution endangers public health and welfare, also known as the “endangerment finding.” The EPA’s primary argument is based on a reinterpretation of Congress’ intent under the Clean Air Act for the EPA to broadly regulate pollutants.

As a reminder, the endangerment finding provides the legal foundation under the Clean Air Act for the EPA to regulate greenhouse gases. Without it, the EPA would lack clear authority under that statute to regulate emissions from sources like vehicle tailpipes and certain industrial facilities.

It’s worth noting that the vast majority of emissions reductions in the U.S. to date have resulted from cleaner energy sources replacing coal, as a result not of federal regulations, but of market forces as clean technologies became cheap.

Still, over half a million public comments were submitted on the EPA’s draft rule, including a formal comment from CCL that emphasized EPA’s mandate from Congress to regulate climate pollution.

Today’s decision reveals in stark terms that regulations alone are not a reliable path to enduring climate action. Federal regulations and executive orders tend to be temporary, shifting with each new presidential administration.

“It’s simply not enough for Congress to direct an agency to regulate climate pollution — Congress needs to pass laws that actively shift our economy toward clean energy, whether through carbon pricing, faster energy permitting processes, or other policy tools like the ones we advocate for here at Citizens’ Climate Lobby,” said Jennifer Tyler, CCL’s Vice President of Government Affairs.

That’s why CCL’s focus remains on working with lawmakers to pass lasting climate solutions.

“Legislative action provides durable policy that will drive the deep, long-term emissions reductions we need. That’s especially true when Members of Congress from both parties work together on solutions, as we urge them to,” Tyler added.

The EPA’s decision will next be challenged in the courts, a process that will likely take several years and may ultimately reach the Supreme Court. CCL appreciates that our allies in the climate space are equipped to fight on this particular battlefront and will be bringing these lawsuits.

“CCLers will continue to work together — across the aisle and across the country — to build political will for effective climate solutions in Congress,” affirmed Ricky Bradley, CCL’s Executive Director.

CONTACT: Flannery Winchester, CCL Vice President of Marketing and Communications, 615-337-3642, flannery@citizensclimate.org

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Citizens’ Climate Lobby is a nonprofit, nonpartisan, grassroots advocacy organization focused on national policies to address climate change. Learn more at citizensclimatelobby.org.

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Analysis: Trump has overseen more coal retirements than any other US president

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Donald Trump has overseen more retirements of coal-fired power stations than any other US president, according to Carbon Brief analysis.

His administration’s latest efforts to roll back US climate policy have been presented by interior secretary Doug Burgum as an opportunity to revive “clean, beautiful, American coal”.

The administration is in the process of attempting to repeal the 2009 “endangerment” finding, which is the legal underpinning of many federal climate regulations.

On 11 February, the White House issued an executive order on “America’s beautiful clean coal power generation fleet”, calling for government contracts and subsidies to keep plants open.

On the same day, Trump was presented with a trophy by coal-mining executives declaring him to be the “undisputed champion of beautiful clean coal”.

These words are in sharp contrast to Trump’s record in office, with more coal-fired power plants having retired under his leadership than any other president, as shown in the figure below.

This is because coal plants have been uneconomic to operate compared with cheaper gas and renewables – and because most of the US coal fleet is extremely old.

A blue and red bar chart on a white background shpwing that Trump has overseen more coal retirements than any other US president. The chart shows that Biden oversaw 41 coal retirements, Obama 48, and Trump 57.
Capacity of coal-fired power plants retiring under recent US presidents, gigawatts (GW). Source: Carbon Brief analysis of data from Global Energy Monitor.

In total, some 57 gigawatts (GW) of coal capacity has already been retired during Trump’s first and second terms in office, compared with 48GW under Obama’s two full terms and 41GW under Biden’s single term.

Even in relative terms, the US has lost a larger proportion of its remaining coal fleet for each year of Trump’s presidencies than for either of his recent predecessors.

Trump’s record hints at the many practical and economic factors that have driven US coal closures, regardless of the preferences of the president of the day.

Indeed, Trump made variousefforts to prop up coal power during his first term in office. These were ultimatelyunsuccessful, as the figure below illustrates.

Coal-fired power capacity in the US, GW. Source: Global Energy Monitor.
Coal-fired power capacity in the US, GW. Source: Global Energy Monitor.

Coal plants have been retiring in large numbers over the past 20 years because they were uneconomic relative to cheaper sources of electricity, including renewables and gas.

These unfavourable market conditions, alongside air pollution regulations unrelated to climate change, have resulted in a steady parade of coal closures under successive presidents.

By 2024, wind and solar were generating more electricity in the US than coal.

More recently, analysis from the US Energy Information Administration shows that surging power prices have improved the economics of both coal and gas-fired power plants.

These rising prices have been driven by increasing demand, including from data centres, and by higher gas prices, due to increasing exports at liquefied natural gas (LNG) terminals.

These factors saw coal-power output increase by 13% year-on-year in 2025, only the second rise in a decade of steady decline for the fuel, according to the Rhodium Group.

Nevertheless, many utilities have still been looking to shutter their ageing coal-fired power plants.

The vast majority of US coal plants are nearing retirement. Three-quarters of US coal capacity is more than four decades old and only 14% is less than 20 years old, as shown in the figure below.

Capacity of US coal plants by age group, GW. Source: Global Energy Monitor.
Capacity of US coal plants by age group, GW. Source: Global Energy Monitor.

In response, the Trump administration has recently invoked legislation designed for wartime emergencies to force a number of uneconomic coal plants to remain open.

Despite Trump’s efforts, clean energy made up 96% of the new electricity generation capacity added to the US grid in 2025. None of the new capacity came from coal power.

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Analysis: China’s CO2 emissions have now been ‘flat or falling’ for 21 months

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China’s carbon dioxide (CO2) emissions fell by 1% in the final quarter of 2025, likely securing a decline of 0.3% for the full year as a whole.

This extends a “flat or falling” trend in China’s CO2 emissions that began in March 2024 and has now lasted for nearly two years.

The new analysis for Carbon Brief shows that, in 2025, emissions from fossil fuels increased by an estimated 0.1%, but this was more than offset by a 7% decline in CO2 from cement.

Other key findings include:

  • CO2 emissions fell year-on-year in almost all major sectors in 2025, including transport (3%), power (1.5%) and building materials (7%).
  • The key exception was the chemicals industry, where emissions grew 12%.
  • Solar power output increased by 43% year-on-year, wind by 14% and nuclear 8%, helping push down coal generation by 1.9%.
  • Energy storage capacity grew by a record 75 gigawatts (GW), well ahead of the rise in peak demand of 55GW.
  • This means that growth in energy storage capacity and clean-power output topped the increases in peak and total electricity demand, respectively.

The CO2 numbers imply that China’s carbon intensity – its fossil-fuel emissions per unit of GDP – fell by 4.7% in 2025 and by 12% during 2020-25.

This is well short of the 18% target set for that period by the 14th five-year plan.

Moreover, China would now need to cut its carbon intensity by around 23% over the next five years in order to meet one of its key climate commitments under the Paris Agreement.

Whether Chinese policymakers remain committed to this target is a key open question ahead of the publication of the 15th five-year plan in March.

This will help determine if China’s emissions have already passed their peak, or if they will rise once again and only peak much closer to the officially targeted date of “before 2030”.

‘Flat or falling’

The latest analysis shows China’s CO2 emissions have now been flat or falling for 21 months, starting in March 2024. This trend continued in the final quarter of 2025, when emissions fell by 1% year-on-year.

The picture continues to be finely balanced, with emissions falling in all major sectors – including transport, power, cement and metals – but rising in the chemicals industry.

This combination of factors means that emissions continue to plateau at levels slightly below the peak reached in early 2024, as shown in the figure below.

China’s CO2 emissions from fossil fuels and cement, million tonnes of CO2, rolling 12-month totals until September 2025. Source: Emissions are estimated from National Bureau of Statistics data on production of different fuels and cement, China Customs data on imports and exports and WIND Information data on changes in inventories, applying emissions factors from China’s latest national greenhouse gas emissions inventory and annual emissions factors per tonne of cement production until 2024. Sector breakdown of coal consumption is estimated using coal consumption data from WIND Information and electricity data from the National Energy Administration. The consumption of petrol, diesel and jet fuel is adjusted to match quarterly totals estimated by Sinopec.

Power sector emissions fell by 1.5% year-on-year in 2025, with coal use falling 1.7% and gas use increasing 6%. Emissions from transportation fell 3% and from the production of cement and other building materials by 7%, while emissions from the metal industry fell 3%.

These declines are shown in the figure below. They were partially offset by rising coal and oil use in the chemical industry, up 15% and 10% respectively, which pushed up the sector’s CO2 emissions by 12% overall.

Year-on-year change in China’s CO2 emissions from fossil fuels and cement, for the period January-September 2025, million tonnes of CO2.
Year-on-year change in China’s CO2 emissions from fossil fuels and cement, for the period January-September 2025, million tonnes of CO2. Source: Emissions are estimated from National Bureau of Statistics data on production of different fuels and cement, China Customs data on imports and exports and WIND Information data on changes in inventories, applying emissions factors from China’s latest national greenhouse gas emissions inventory and annual emissions factors per tonne of cement production until 2024. Sector breakdown of coal consumption is estimated using coal consumption data from WIND Information and electricity data from the National Energy Administration. The consumption of petrol, diesel and jet fuel is adjusted to match quarterly totals estimated by Sinopec.

In other sectors – largely other industrial areas and building heat – gas use increased by 2%, more than offsetting the reduction in emissions from a 3% drop in their coal consumption.

Clean power covers electricity demand growth

In the power sector, which is China’s largest emitter by far, electricity demand grew by 520 terawatt hours (TWh) in 2025.

At the same time, power generation from solar increased by 43% and wind power generation by 14%, delivering 360TWh and 130TWh of additional clean electricity. Nuclear power generation grew 8%, supplying another 40TWh. The increased generation from these three sources – some 530TWh – therefore met all of the growth in demand.

Hydropower generation also increased by 3% and bioenergy by 3%, helping push power generation from fossil fuels down by 1%. Gas-fired power generation increased by 6% and, as a result, power generation from coal fell by 1.9%.

Furthermore, the surge in additions of new wind and solar capacity at the end of 2025 will only show up as increased clean-power generation in 2026.

On the other hand, the growth in solar and wind power generation has fallen short of the growth in capacity, implying a fall in capacity utilisation – a measure of actual output relative to the maximum possible. This is highly likely due to increased, unreported curtailment, where wind and solar sites are switched off because the electricity grid is congested.

If these grid issues are resolved over the next few years, then generation from existing wind and solar capacity will increase over time.

Developments in 2025 extended the trend of clean-power generation growing faster than power demand overall, as shown in the top figure below. This trend started in 2023 and is the key reason why China’s emissions have been stable or falling since early 2024.

In addition, 2025 saw another potential inflection point, shown in the bottom figure below. It was the first year ever that energy storage capacity – mainly batteries – grew faster than peak electricity demand in 2025 and faster than the average growth in the past decade.

Top columns: Year-on-year change in annual electricity generation from clean energy excluding hydro, terawatt hours. Left solid and dashed line: Annual and average change in total electricity generation, TWh. Bottom columns: Year-on-year change in energy storage capacity, gigawatts. Right solid and dashed line: Annual and average change in peak electricity demand. Sources: Power generation and demand from Ember; peak loads from China Electric Power News since 2020; peak loads until 2019 and pumped hydro capacity from Wind Financial Terminal; battery storage capacity from China Energy Storage Alliance; analysis for Carbon Brief by Lauri Myllyvirta.

China’s energy storage capacity increased by 75GW year-on-year in 2025, while peak demand only increased by 55GW. The rise in storage capacity in 2025 is also larger than the three-year average increase in peak loads, some 72GW per year.

Peak demand growth matters, because power systems have to be designed to reliably provide enough electricity supply at the moment of highest demand.

Moreover, the increase in peak loads is a key driver of continued additions of coal and gas-fired power plants, which reached the highest level in a decade in 2025.

The growth in energy storage could provide China with an alternative way to meet peak loads without relying on increased fossil fuel-based capacity.

The growth in storage capacity is set to continue after a new policy issued by China’s top economic planner the National Development and Reform Commission (NDRC) in January.

This policy means energy storage sites will be supported by so-called “capacity payments”, which to date have only been available to coal- and gas-fired power plants and pumped hydro storage.

Concerns about having sufficient “firm” power capacity in the grid – that which can be turned on at will – led the government to promote new coal and gas-fired power projects in recent years, leading to the largest fossil-fuel based capacity additions in a decade in 2025, with another 290GW of coal-fired capacity still under construction.

Reforming the power system and increasing storage capacity would enable the grid to accommodate much higher shares of solar and wind, while reducing the need for new coal or gas capacity to meet rising peaks in demand.

This would both unlock more clean-power generation from existing capacity and improve the economics and risk profiles of new projects, stimulating more growth in capacity.

Peaking power CO2 requires more clean-energy growth

China’s key climate commitments for the next five-year period until 2030 are to peak CO2 emissions and to reduce carbon intensity by more than 65% from 2005 levels. The latter target requires limiting CO2 emissions at or below their 2025 level in 2030.

The record clean-energy additions in 2023-25 have barely sufficed to stabilise power-sector emissions, showing that if rapid growth in power demand continues, meeting the 2030 targets requires keeping clean-energy additions close to 2025 levels over the next five years.

China’s central government continues to telegraph a much lower level of ambition, with the NDRC setting a target of “around” 30% of power generation in 2030 coming from solar and wind, up from around 22% in 2025.

If electricity demand grows in line with the State Grid forecast of 5.6% per year, then limiting the share of wind and solar to 30% would leave space for fossil-fuel generation to grow at 3% per year from 2025 to 2030, even after increases from nuclear and hydropower.

Such an increase would mean missing China’s Paris commitments for 2030.

Alternatively, in order to meet the forecast increase in electricity demand without increasing generation from fossil fuels would require wind and solar’s share to reach 37% in 2030.

Similarly, China’s target of a non-fossil energy share of 25% in 2030 will not be sufficient to meet its carbon-intensity reduction commitment for 2030, unless energy demand growth slows down sharply.

This target is unlikely to be upgraded, since it is already enshrined in China’s Paris Agreement pledge, so in practice the target would need to be substantially overachieved if the country is to meet its other commitments.

If energy demand growth continues at the 2025 rate and the share of non-fossil energy only rises from 22% in 2025 to 25% in 2030, then the consumption of fossil fuels would increase by 3% per year, with a similar rise in CO2 emissions.

Still, another recent sign that clean-energy growth could keep exceeding government targets came in early February when the China Electricity Council projected solar and wind capacity additions of more than 300GW in 2026 – well beyond the government goal of “over 200GW”.

Chemical industry

The only significant source of growth in CO2 emissions in 2025 was the chemical industry, with sharp increases in the consumption of both coal and oil.

This is shown in the figure below, which illustrates how CO2 emissions appear to have peaked from cement production, transport, the power sector and others, whereas the chemicals industry is posting strong increases.

Sectoral emissions from fossil fuels and cement, million tonnes of CO2, rolling 12-month totals.
Sectoral emissions from fossil fuels and cement, million tonnes of CO2, rolling 12-month totals. Source: Emissions are estimated from National Bureau of Statistics data on production of different fuels and cement, China Customs data on imports and exports and WIND Information data on changes in inventories, applying emissions factors from China’s latest national greenhouse gas emissions inventory and annual emissions factors per tonne of cement production until 2024. Sector breakdown of coal consumption is estimated using coal consumption data from WIND Information and electricity data from the National Energy Administration.

Even though chemical-industry emissions are small relative to other sectors – at roughly 13% of China’s total – the pace of expansion is creating an outsize impact.

Without the increase from the chemicals sector, China’s total CO2 emissions would have fallen by an estimated 2%, instead of the 0.3% reported here.

Without changes to policy, emission growth is set to continue, as the coal-to-chemicals industry is planning major increases in capacity.

Whether these expansion plans receive backing in the upcoming five-year plan for 2026-30 will have a major impact on China’s emission trends.

Another key factor is the development of oil and gas prices. Production in the coal-based chemical industry is only profitable when coal is significantly cheaper than crude oil.

The current coal-to-chemicals capacity in China is dominated by plants producing higher-value – and therefore less price-sensitive – chemicals such as olefins and aromatics, as feedstocks for the production of plastics.

In contrast, the planned expansion of the sector is expected to be largely driven by plants producing oil products and synthetic gas to be used for energy. For these products, electrification and clean-electricity generation provide a direct alternative, meaning they are even more sensitive to low oil and gas prices than chemicals production.

Outlook for China’s emissions

This is the latest analysis for Carbon Brief to show that China’s CO2 emissions have now been stable or falling for seven quarters or 21 months, marking the first such streak on record that has not been associated with a slowdown in energy demand growth.

Notably, while emissions have stabilised or begun a slow decline, there has not yet been a substantial reduction from the level reached in early 2024. This means that a small jump in emissions could see them exceed the previous peak level.

China’s official plans only call for peaking emissions shortly before 2030, which would allow for a rebound from the current plateau before the ultimate emissions peak.

If China is to meet its 2030 carbon intensity commitment – a 65% reduction on 2005 levels – then emissions would have to fall from the peak back to current levels by 2030.

Whether China’s policymakers are still committed to meeting this carbon intensity pledge, after the setbacks during the previous five-year period, is a key open question. The 2030 energy targets set to date have fallen short of what would be required.

The most important signal will be whether the top-level five-year plan for 2026-30, due in March, sets a carbon intensity target aligned with the 2030 Paris commitment.

Officially, China is sticking to the timeline of peaking CO2 emissions “before 2030”, which was announced by president Xi Jinping in 2020.

According to an authoritative explainer on the recommendations of the Central Committee of the Communist Party for the upcoming five-year plan, published by state-backed news agency Xinhua, coal consumption should “reach its peak and enter a plateau” from 2027.

It says that continued increases in demand for coal from electricity generators and the chemicals industry would be offset by reductions elsewhere. This is despite the fact that China’s coal consumption overall has already been falling for close to two years.

The reference to a “plateau” in coal consumption indicates that in official plans, meaningful absolute reductions in emissions would have to wait until after 2030. Any increase in coal consumption from 2025 to 2027, before the targeted plateau, would need to be offset by reductions in oil consumption, to meet the carbon intensity target.

Moreover, allowing coal consumption in the power sector to grow beyond the peak of overall coal use and emissions implies slowing down China’s clean-energy boom. So far, the boom has continued to exceed official targets by a wide margin.

In addition, the explainer’s expectation of further growth in coal use by the chemicals industry indicates a green light for at least a part of its sizable expansion plans.

The Xinhua article recognises that oil product consumption has already peaked, but says that oil use in the chemicals industry has kept growing. It adds that overall oil consumption should peak in 2026.

Elsewhere, the article speaks of “vigorously” developing non-fossil energy and “actively” developing “distributed” solar, which has slowed down due to recent pricing policies.

Yet it also calls for “high-quality development” of fossil fuels and increased efforts in domestic oil and gas production, suggesting that China continues to take an “all of the above” approach to energy policy.

The outcome of all this depends on how things turn out in reality. The past few years show it is possible that clean energy will continue to overperform its targets, preventing growth in energy consumption from fossil fuels despite this policy support.

The key role of the clean-energy boom in driving GDP growth and investments is one key motivator for policymakers to keep the boom going, even when central targets would allow for a slowdown. It is also possible that the five-year plans of provinces and state-owned enterprises could play a key role in raising ambition, as they did in 2022.

About the data

Data for the analysis was compiled from the National Bureau of Statistics of China, National Energy Administration of China, China Electricity Council and China Customs official data releases, as well as from industry data provider WIND Information and from Sinopec, China’s largest oil refiner.

Electricity generation from wind and solar, along with thermal power breakdown by fuel, was calculated by multiplying power generating capacity at the end of each month by monthly utilisation, using data reported by China Electricity Council through Wind Financial Terminal.

Total generation from thermal power and generation from hydropower and nuclear power were taken from National Bureau of Statistics monthly releases.

Monthly utilisation data was not available for biomass, so the annual average of 52% for 2023 was applied. Power-sector coal consumption was estimated based on power generation from coal and the average heat rate of coal-fired power plants during each month, to avoid the issue with official coal consumption numbers affecting recent data.

CO2 emissions estimates are based on National Bureau of Statistics default calorific values of fuels and emissions factors from China’s latest national greenhouse gas emissions inventory, for the year 2021. The CO2 emissions factor for cement is based on annual estimates up to 2024.

For oil, apparent consumption of transport fuels – diesel, petrol and jet fuel – is taken from Sinopec quarterly results, with monthly disaggregation based on production minus net exports. The consumption of these three fuels is labeled as oil product consumption in transportation, as it is the dominant sector for their use.

Apparent consumption of other oil products is calculated from refinery throughput, with the production of the transport fuels and the net exports of other oil products subtracted. Fossil-fuel consumption includes non-energy use such as plastics, as most products are short-lived and incineration is the dominant disposal method.

The post Analysis: China’s CO2 emissions have now been ‘flat or falling’ for 21 months appeared first on Carbon Brief.

Analysis: China’s CO2 emissions have now been ‘flat or falling’ for 21 months

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