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China Briefing handpicks and explains the most important climate and energy stories from China over the past fortnight. Subscribe for free here.
Key developments
New sector targets in renewable portfolio standard
NEW QUOTAS: China has published the 2025-2026 provincial quotas for renewable energy consumption, which for the first time included sectoral targets for iron and steel, cement, polysilicon and certain types of data centres, industry news outlet BJX News reported, as well as updates to the aluminium sector targets established last year. Bloomberg said that the steel, cement and polysilicon sectors will need to use low-carbon energy to “meet between 25% and 70% of their demand” under the policy. Energy news outlet International Energy Net noted that Sichuan, Yunnan and Qinghai provinces faced the “highest quotas”, at 70%. (For comparison, the average provincial quota is 38%, Carbon Brief calculated. A separate quota for these three provinces that does not include hydropower is much closer to the national average.)
POWER RUSH: In contrast to expectations that renewable installations in China would slow for the rest of 2025, the state-run thinktank State Grid Energy Research Institute estimated that 380 gigawatts (GW) of solar, 140GW of wind power and 120GW of thermal power (likely mostly coal) will be added this year, Bloomberg reported. It noted that the solar figure is “more than 50% higher than forecasts from the leading solar industrial group”. According to NEA data, the estimate implies China will add 182GW in solar, 94GW in wind and 102GW in thermal power between June and December.
MANAGING THE INCREASE: Li Chao, spokesperson for the National Development and Reform Commission (NDRC), told reporters that “large-scale xiaona (消纳) consumption of renewable energy is critical” given rapid capacity growth, according to industry outlet China Energy News, adding that consumption rates continue to exceed 90% – meaning no more than 10% of potential output is being wasted, according to government calculations. However, separate outlet China Energy Net reported that wind and solar utilisation rates (利用率) in some provinces fell below the government-set red line of 90%, due to rapid growth. Dr Muyi Yang, senior energy analyst for Asia at thinktank Ember, told Carbon Brief: “The recent dip in utilisation rates in the western regions is an early warning that [investment in the grid] needs to speed up.”
OPEN ARMS?: Coal power still has “room to grow” during the fifteenth five-year plan period (2026-2030) despite market challenges, China Electricity Council chief expert Chen Zongfa told BJX News. Chen said this was due to the changing “attitude of the government”, which “no longer demonises coal”. The influential State-owned Assets Supervision and Administration Commission of the State Council (SASAC) pledged to “speed up the construction of thermal power projects” and “ensure the safe and stable supply of coal”, according to China Energy News. Another China Energy News article quoted an NDRC official saying China needed to “ensure the stability of coal supply”. Meanwhile, in a visit to Shanxi, President Xi Jinping told local policymakers to transform the coal industry “from low-end to high-end” while also developing clean-energy, Xinhua said.
Floods and heatwaves
‘INTENSE’ RAINS: Several regions in China, including the southern Henan, Guizhou and Hubei provinces, were hit by “intense rainfall” throughout late June and early July, causing “severe flooding” and several deaths, Bloomberg reported, in an article noting that climate change is “fuelling” extreme weather events. Meanwhile, high temperatures “enveloped China’s eastern seaboard…raising fears of droughts and economic losses”, Reuters said, adding that “extreme heat, which meteorologists link to climate change, has emerged as a major challenge for Chinese policymakers”.
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NEW WARNINGS: At the launch of the China Blue Book on Climate Change 2025 – a document outlining global and China-specific impacts of climate change – National Climate Center deputy director Xiao Chan stated that the “national average temperature in June was 21.1C”, marking the hottest June since records began, according to business news outlet 21st Century Business Herald. State news agency Xinhua quoted Chen Min, vice-minister of the Ministry of Water Resources, telling reporters that 329 rivers had flooded “above warning levels” as of 4 July. Meanwhile, the government established a new heat-health warning system, which “aims to strengthen public health preparedness amid growing climate challenges”, the state-run newspaper China Daily said.
GRID PRESSURES: Linked to high temperatures along the east coast, the National Energy Administration (NEA) revealed that China’s maximum power demand reached a “record high” of 1,465GW on 4 July, finance news outlet Yicai reported, adding that air-conditioning load “accounted for about 37%” of the peak power grid load in eastern China. Bloomberg said that the grid is “in better shape to take on peak summer demand this year”, following preparations to avoid previous blackouts.
Setting the tone on ‘overcapacity’
MIIT HAUL-UP: In a meeting with solar industry representatives, Ministry of Industry and Information Technology (MIIT) head Li Lecheng said MIIT “will further increase macro-guidance and governance of the industry” in the face of “low-price disorderly competition”, BJX News reported. The Hong Kong-based South China Morning Post (SCMP) noted that Li also said companies should be “guided” to phase out “outdated production capacity”. In its coverage, Bloomberg noted that it was “unclear” what impact the meeting would have, but that it “highlight[ed] the seriousness with which Beijing views” the issue.
CLEAR SIGNALS: The meeting followed days of signalling from China on the need to crack down on industrial overcapacity, which has been blamed for “flood[ing trading] partners’ markets with artificially low-cost goods”, according to the Financial Times. In late June, the front page of the party-affiliated newspaper People’s Daily carried an article under the byline Jin Sheping – used to signal the thoughts of party leadership on economic matters – stating that “rat race competition”, a term linked to overcapacity, would “destroy” industries such as solar, lithium-ion batteries and new-energy vehicles (NEVs). At an economic policy meeting, Xi said China must “govern low-price and disorderly competition…and promote the orderly withdrawal of outdated production capacity”, BJX News said. (He also noted the need to develop more “offshore wind power” and a “unified national market”.) On the same day, ideological journal Qiushi also published an article criticising “rat race competition”. Meanwhile, the Associated Press reported, China also “shows signs of tackling” similar overcapacity issues in the NEV industry.
EUROPE UNHAPPY: European policymakers appear unconvinced, however, with top EU diplomat Kaja Kallas telling her Chinese counterpart Wang Yi that China must “put an end to its distortive practices…which pose significant risks to European companies and endanger the reliability of global supply chains”, according to Reuters. It added that the remarks came during meetings aiming to “lay the groundwork for a summit between EU and Chinese leaders” set to take place on 24 July. Meanwhile, the EU is refusing to consider publishing a joint EU-China climate declaration at the leaders’ summit “unless China pledged greater efforts to cut its greenhouse gas emissions”, the Financial Times reported.
BRICS message on climate finance
MITIGATION FUND: The heads of the BRICS nations, a grouping of China and several other global south countries, “demand[ed] that wealthy nations fund mitigation of greenhouse gas emissions in poorer nations” at a leaders summit in early July, Reuters said. It added that, while Brazil “urged a global transition away from fossil fuels”, the resulting joint statement “argued that petroleum will continue to play an important role in the global energy mix, particularly in developing economies”. Reacting to the summit, the campaign group WWF said in a press release: “When it comes to climate, the message falls short.”
GLOBAL SOUTH VOICE: The Guardian noted that “Brazilian diplomats see the BRICS alliance as part of an emerging new world order”, noting that the summit featured “pushback against the EU” over “discriminatory protectionist measures under the pretext of environmental concerns”. Brazil also used the summit to ask “China and BRICS member states in the Middle East to be among the seed funders” for long-term financing for conservation, the newspaper said, adding that this did not seem to have been successful. The absence of Xi from the meeting, in a first at a BRICS leaders summit, sparked significant speculation around how valuable China saw the block as being.
Spotlight
Key takeaways from China’s latest climate adaptation progress report
China’s Ministry of Ecology and the Environment (MEE) recently published a report outlining China’s progress last year in adapting to climate change. In this issue, Carbon Brief outlines three key messages from the assessment.
Extreme weather events are becoming more severe
China’s climate was “relatively poor” (偏差) in 2024, the MEE report stated, with several “record-breaking or severely disastrous” extreme weather events.
These include extreme heat and cold, rainfall, typhoons, flooding and severe convective weather.
Weather events have generally worsened year-on-year, the report said. In 2024, China’s average temperature stood at 10.9C – the warmest since modern records began.
Similarly, national average rainfall totalled almost 698 millimetres, up 9% year-on-year. More typhoons made landfall in China in 2024 compared to 2023, of which several had “large disaster impacts”, according to the report.
It added that these events had “serious adverse” socio-economic impacts, noting that extreme weather led to at least 500 deaths or disappearances in 2024. (Statistics for deaths and disappearances were not included in the 2023 edition of the report.)
In 2024, the central government spent more than 2.5bn yuan ($350m) on “natural disaster relief funds”, covering flooding, drought and extreme cold.
Climate-resilient infrastructure still a main focus
Extreme weather is also increasingly damaging infrastructure, the report noted. For example, more than 29m users lost power due to extreme weather.
Much of the report is dedicated to describing China’s efforts to develop infrastructure that can resist or help mitigate the effects of extreme weather events.
Managing “water resources” and water conservation continued to receive a strong focus in the report, which added that, in 2024, “major water conservancy projects continued to be developed to a high quality”.
It also noted that this infrastructure buildout “played a key role” in mitigating the impact of floods in 2024, with thousands of reservoirs nationwide being used to store floodwater.
This, it said, “reduced” the impact of 26 floods on 2,300 cities and towns and 17m mu [slightly more than 1m hectares] of arable land”.
The country is also strengthening its ability to predict future extreme weather events, building more than 10,000 new monitoring and early-warning stations in 2024.
Cities are being encouraged to become more “climate resilient”, with 39 authorised to develop pilot programmes exploring possible solutions.
The report noted that, in 2024, 60 cities were developing “sponge city” projects, using nature-based solutions to absorb, collect or reuse floodwater.
Liu Junyan, project lead for the climate risk project at campaign group Greenpeace East Asia, told Carbon Brief that sponge-city solutions did seem to play a beneficial role during the deadly Henan floods in 2021, where floodwaters receded more quickly in Zhengzhou city than other areas.
“But sponge-city methods are not made to handle the extreme rainfall caused by climate change,” she added.
China’s response is relatively ‘holistic’, but disconnects remain
The MEE report emphasised that China’s overarching climate adaptation strategy covers a broad range of socio-economic impacts.
For example, it mentioned efforts in 2024 to prepare technical guidelines for assessing climate change impacts and risks. Carbon Brief understands that the aim of these efforts is to help provincial governments use more standardised, science-based assessments of climate risk, as well as how they should respond.
The report also noted efforts to develop climate-conscious behaviours, such as campaigns encouraging farmers to use “water-saving” irrigation technologies and guidelines to “enhance public awareness” of potential climate-related health risks.
Liu said China’s approach to adaptation is “holistic”, but added that it remains “top-down”, sometimes causing local needs to go unmet.
Furthermore, the report said China needs to further develop strategies for climate impacts on “urban and rural habitats” and “sensitive” industries such as finance, tourism and energy.
Watch, read, listen
HAWKS AND DOVES: The European Parliament broadcasted a debate on EU-China relations ahead of the upcoming leaders’ summit, in which European Commission president Ursula von der Leyen spoke on electric vehicles, rare earths and overcapacity.
DEFINING MOMENT: Shanghai-based news outlet the Paper interviewed former UN secretary-general Ban Ki-moon on China’s role in accelerating climate ambition this year.
CLIMATE PATH: Analysts at the Asia Society Policy Institute’s China climate hub spoke on Environment China about China’s latest emissions, clean-energy and climate diplomacy trends.
STUNTING GROWTH: The US-based National Public Radio explored how climate change is affecting China’s tea-growers, with crops “stunted” and farmers struggling with “changing rhythms”.
6%
The electrification rate of China’s transport sector – well below the economy-wide figure of close to 30% – despite the rapid adoption of NEVs, Chen Ji, executive director at China International Capital Corporation, said at the China launch of the International Energy Agency’s World Energy Investment 2025 report, attended by Carbon Brief. Chen added that the low figure was due to the lack of progress in electrifying aviation and heavy-duty trucks.
New science
Increased socioeconomic impacts with future intensifying flash droughts in China
Geophysical Research Letters
A new paper found that “China will experience longer and more severe droughts, exposing 33% of the population and 35% of gross domestic product to risks under a medium-emission scenario”. The authors analysed economic and soil moisture data over 2000-22 to quantify past changes in “flash droughts”, using models to assess future changes under different climate scenarios. The paper found that “droughts are becoming more frequent in some areas, with a twofold increase in frequency in approximately 32% of these areas by the century’s end”. It added that wealthier regions will face greater economic losses due to flash droughts.
Communications Earth & Environment
Rice cultivation in China’s Sanjiang Plain has expanded northeast by more than two million hectares between 2000 and 2020, driving up irrigation demand by 6bn tonnes, according to a new study. The authors analysed data on “rice migration”, finding that rice expansion drove up irrigation by 122% over 2000-20, while an increase in rainfall due to climate change reduced irrigation demand by 22%. The authors said their findings “highlight the urgent need to make integrated strategies balancing crop migration [with] climate change and water resource conservation”.
Climate Change Research
The poorest counties in China are much more likely to experience record-breaking extreme weather events, which may push them “back to poverty”, according to new research published in a Chinese academic journal. The study combines more than twenty models with eight extreme weather indices to assess “patterns of extreme weather across 832 poverty-alleviated counties [as well as] other counties in China”. The authors recommend actions covering “water infrastructure; disaster mitigation; catastrophe insurance; and public awareness and education” to support climate adaptation in these areas.
China Briefing is compiled by Wanyuan Song and Anika Patel. It is edited by Wanyuan Song and Dr Simon Evans. Please send tips and feedback to china@carbonbrief.org
The post China Briefing 10 July 2025: New sector targets; Overcapacity dressing-down; Adaptation scorecard appeared first on Carbon Brief.
China Briefing 10 July 2025: New sector targets; Overcapacity dressing-down; Adaptation scorecard
June Rubis is a steering group committee member for the Cali Fund, from Sarawak in Malaysian Borneo.
At COP16 in Cali, governments made a significant commitment: at least half of the funding from the new Cali Fund should support the self-identified needs of Indigenous Peoples and local communities, including women and youth. It was a watershed moment for multilateral benefit-sharing.
The challenge now is to translate that commitment into access arrangements that recognise the different institutions, priorities and decision-making processes of Indigenous Peoples and local communities.
For generations, biodiversity and traditional Indigenous knowledge have provided significant value to companies who depend on nature’s genetic diversity to discover new drugs that fight diseases, create products that improve health, and grow crops resilient to extreme heat and flooding events. While some compounds are sampled directly from the source country, increasingly the digital blueprints are held in online public databases which are freely accessible to use for innovation and research.
Countries urged to ramp up “insufficient” nature policies at COP17
The Cali Fund was established at COP16 to encourage commercial users of Digital Sequence Information, or DSI, to share benefits arising from its use. Estimates suggest it could generate over $3.5 billion a year – a stark contrast to the modest $10,656 currently committed to the fund from just five SMEs, underlining how much progress must be made at COP17 over the next two weeks.
The COP16 decision that set up the fund offers two routes for money to reach Indigenous Peoples and local communities: through government authorities, and through direct payments to institutions identified by Indigenous Peoples and local communities themselves.
Varied ways of organising
Indigenous Peoples and local communities organise through a wide range of institutions. Some have national or regional organisations experienced in managing international grants. Others work through territorial organisations, customary institutions, community associations, cooperatives or networks. Some have professional finance teams and audited accounts; others have extensive experience governing territories, collective resources or conservation work without having been organised around international funding requirements.
For direct access, some questions are already apparent. Which institutions should be able to receive funds? How should they be identified? What fiduciary standards should apply? How should safeguards and accountability work where institutional capacities differ? What support may be needed where institutions have strong community mandates but less experience with international finance?
Comment: Protecting nature is a public duty, not a Wall Street profit opportunity
If access is designed mainly around institutions that already meet the expectations of large international finance mechanisms, early funding will tend to favour those already familiar to funders. They will gain further experience and become better positioned for future funding, while institutions with less administrative capacity may remain outside the system despite strong community mandates and long histories of stewardship.
These first decisions matter most, because they set the terms for everyone who follows.
The role of intermediaries requires care. Some Indigenous organisations may want a fiscal host to hold and manage funds on their behalf. Communities may choose to work through an NGO they trust. Government-facilitated arrangements may work well in particular national contexts.
What matters is the function an intermediary performs and the authority that comes with it. Providing administrative support is different from deciding which Indigenous organisations qualify, which priorities can receive support, or how success will be assessed. Direct access means communities keep that decision-making authority.
Decision-making power
The COP16 decision refers to institutions that Indigenous Peoples and local communities identify. But authority among Indigenous Peoples does not sit in one kind of body. It may sit with territorial organisations, customary institutions, community associations or combinations of these. Legal recognition and customary authority do not always align neatly.
Global deforestation slowed in 2025 but Brazil’s election could undo “fragile” gains
An important feature of the Cali Fund’s governance is that Indigenous Peoples and local communities participate as full members of the Steering Committee, rather than as observers. Seven Indigenous Peoples and local community representatives, one from each of the seven socio-cultural regions, participate in consensus-based decision-making alongside representatives of governments and UN entities. Six additional representatives from civil society, scientific institutions and the private sector participate as observers.
That representation carries responsibility. Institutional legitimacy, access and representation take different forms across the seven socio-cultural regions. Indigenous Peoples and local communities members therefore have an important role in bringing those differences into the Fund’s governance and in ensuring that arrangements developed for one context do not become the assumed model for everyone else.
Safeguards and clear responsibilities
COP17 can establish the core principles and direction, while allowing operational pathways to develop in ways that respond to different regional contexts. The decisions countries take in Yerevan will shape how that flexibility is realised in practice.
The choices made around access will influence which institutions are able to participate, which routes become established and which forms of authority are recognised within the funding architecture. The aim should be an architecture with enough structure to maintain confidence while allowing for different forms of Indigenous and community governance.
A credible direct-access pathway will need safeguards, financial oversight and clear responsibilities. This would give the 50% commitment a stronger institutional foundation.
The Cali Fund’s importance will ultimately depend not only on how much funding reaches Indigenous Peoples and local communities, but on whether they are able to determine how the money is accessed, governed and used. This requires access pathways that recognise their institutions, priorities and decision-making processes, rather than requiring them to conform to a single predetermined model.
The post COP17 must settle who decides how Cali Fund money is disbursed appeared first on Climate Home News.
COP17 must settle who decides how Cali Fund money is disbursed
The UK government has approved extraction at the Jackdaw gas field in the North Sea, despite acknowledging that this decision could make it harder for Britain to convince other countries to move away from fossil fuel production.
UK energy secretary Miatta Fahnbulleh approved the drilling on Wednesday after months of high-profile debate, fuelled in part by interventions from US President Donald Trump. She argued that the project would boost energy security in the wake of the Middle East fossil fuel crisis, protect hundreds of jobs and add £2.9 billion ($3.88bn) to the UK economy.
She said Jackdaw’s gas would be cleaner than imported gas and would not prevent the UK from meeting its legally-binding carbon targets and its goal of net zero by 2050. As the field is already licensed, she said extraction was consistent with the Labour Party’s 2024 manifesto promise not to issue any new oil and gas licenses.
The same morning, the government announced a new Energy Wealth Fund to reinvest oil and gas revenues in the climate transition. It will start with £2 billion ($2.67bn) from the government and be topped up over time with tax revenues from offshore oil and gas production.
Climate campaigners in the UK and abroad were quick to condemn the decision, while a leading legal expert told Climate Home News it goes against the advice of the International Court of Justice. Meanwhile, the government’s own documents reveal that it recognises the drilling could damage the UK’s reputation and its ability to push forward the global transition away from fossil fuels.
“Climate leadership” blow
The 92-page decision document says Fahnbulleh “acknowledges that international standing on climate is important and accepts that a decision to grant consent may not further the UK’s international climate leadership.”
It adds: “She acknowledges concerns about the potential implications for the UK’s credibility and influence – including the difficulty inherent in encouraging other states to move away from fossil fuel production while the UK continues, in a limited and transitional way, to draw on its own domestic resources.”
While noting that Jackdaw has not been issued with a new license – just permission to extract gas – the document says Fahnbulleh “accepts this does not fully resolve the underlying tension in the UK’s position” but “considers this alongside the substance of the UK’s wider record [on emissions reduction], which remains significant”.
It continues that she accepts these concerns are “legitimate” and weigh against approving gas extraction, but only gives this argument a “moderate negative weight” set against the benefits of gas production.
“Huge” wrong signal
In international climate talks, the UK has long supported the transition away from fossil fuels and is one of very few major oil and gas producers to ban new licenses. Across the North Sea, the Norwegian government continues to make offshore areas available for oil and gas exploration through annual licensing rounds.