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Welcome to Carbon Brief’s China Briefing.

China Briefing handpicks and explains the most important climate and energy stories from China over the past fortnight. Subscribe for free here.

Key developments

China fails to submit 2035 climate pledge

MISSED DEADLINE: China, along with 181 other countries, missed the deadline to submit its next “nationally determined contribution” (NDC), a key climate pledge to the UN that “acts as an accountability measure to ensure countries are taking climate change seriously”, Agence France-Presse reported. It added that, according to unnamed analysts, China is “expected to release its much-anticipated NDC in the second half of 2025”. Chinese foreign ministry spokesperson Guo Jiakun said China will follow its “own path, approach and pace to fulfil the ‘dual-carbon’ targets to which it has committed”, in comments covered by industry newspaper China Energy Net. According to the outlet, he added that the country has “always been a doer and an activist in addressing climate change” and will submit its NDC “at the proper time”.

WAIT AND SEE: According to the Guardian, China and other countries would prefer “putting off the publication of [NDCs]” until the early disruption caused by the second Trump administration subsides. In a statement, Yao Zhe, global policy advisor at Greenpeace East Asia, said that “China’s submission will happen later this year”, adding that China must set “ambitious” goals that “include both a strong commitment to renewables and clear measures to move away from coal”. Li Shuo, director of the Asia Society Policy Institute’s China climate hub, told Eco-Business that China’s desire to wait and see how the US will “reshape” global political and economic orders is “natural”, adding that “the hope is that more time will lead to better quality”. China was not alone in missing the NDC deadline, with countries accounting for 83% of global emissions falling short, according to Carbon Brief analysis.

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OIL ‘SLOWDOWN’: Elsewhere, a new report by the International Energy Agency (IEA) and covered by Bloomberg found that “China’s use of the three most important fuel products – gasoline, jet/kerosene and gasoil – declined slightly to 8.1m barrels a day in 2024”, marking an “unprecedented” slowdown. The outlet said the shift, attributed by the IEA to the uptake of electric vehicles and economic changes, could drive a plateau in the country’s overall oil demand this decade.

Clean-energy technology’s economic contribution rises

GROWTH DRIVER: Clean-energy technologies contributed 13.6tn yuan ($1.9tn) to the Chinese economy in 2024, comprising more than 10% of GDP for the first time, new research for Carbon Brief has found. Much of the rise was driven by the value of goods and services, which grew 21% compared to 2023, as opposed to investment, which was up 7% year-on-year, the analysis added.

‘NEW THREE’ LEAD: The “new three” industries accounted for most of this growth. Electric vehicles and vehicle batteries “were the largest contributors to China’s clean-energy economy in 2024”, comprising almost 40% of its value. The next largest category was solar power, which generated 2.8tn yuan ($390bn).

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GAINING IMPORTANCE: Clean-energy technologies contributed more to the economy in 2024 than real-estate sales (9.6tn yuan, $1.3tn) and agriculture (9.1tn yuan, $1.3tn), the analysis said. It added that China’s investment in clean energy alone is “close to the global total [investment] put into fossil fuels in 2024”. Investment is set to grow in 2025, due in part to a “race to complete” large-scale projects before the end of the five-year plan period (2021-2025). The importance of clean energy to supporting economic growth now “creates incentives for policymakers to ensure the economic health of the sector”, the analysis added.

Wang Yi’s European tour

STRATEGIC DIALOGUE: Chinese foreign minister Wang Yi met with UK prime minister Keir Starmer in his first official visit to the country in a decade, Reuters said, adding that the two “discussed strengthening cooperation in dealing with climate change, artificial intelligence and clean energy”. Wang also held talks with his UK counterpart David Lammy, English-language state broadcaster CGTN said, in which the two foreign ministers “emphasised the importance of advancing the full and effective implementation of the Paris Agreement and supporting both countries’ green transitions”.

WARM WELCOME?: Bloomberg covered development of China’s “impending listing of an inaugural sovereign green bond in London”, quoting Nneka Chike-Obi, head of Asia-Pacific ESG ratings and research at Sustainable Fitch, saying the move would allow China “to get…feedback from international investors” during roadshows and deliver assurances about its climate plans. China has released a “framework” for its green sovereign bonds, the Communist party-affiliated People’s Daily announced, adding the document will be used as the “basis for issuing Chinese green sovereign bonds overseas”. Meanwhile, the UK’s security services are reviewing whether “Chinese technology such as solar panels or industrial batteries could pose potential future security threats”, the Financial Times reported.

SECURITY TALKS: Wang also travelled to Germany, where he said at the Munich Security Conference that China has “acted earnestly on the Paris Agreement”, adding countries “should tackle common challenges in solidarity, rather than resort to bloc confrontation”, according to a transcript published by the Ministry of Foreign Affairs. State news agency Xinhua reported that climate change was also raised in Wang’s meetings with representatives of the EU, France and Germany on the sidelines of the conference.

MEDIA VOICES: Meanwhile, Chinese media issued a number of editorials and commentaries emphasising the need for China-Europe cooperation. One editorial in state-run newspaper China Daily noted “it is good to see both [the UK and China] oppose decoupling and…promote a nondiscriminatory and open business environment”. Another China Daily editorial said “collaboration on climate change…has borne fruit through joint initiatives such as the China-EU Partnership on Climate Change”. Meanwhile, the state-supporting news outlet Global Times published an editorial arguing “there are broad common interests between China and the EU in maintaining a multilateral framework” to address issues such as climate change. The Global Times also published a commentary under the byline “GT Voice” arguing that there is a “pressing need for the rest of the world, particularly China and the EU, to strengthen cooperation on green development”.

New energy storage plan

STORAGE STRENGTH: China issued a plan to strengthen its energy storage sector, aiming to develop more “leading” manufacturers, improve “innovation” and increase the sector’s “overall competitiveness” by 2027, Xinhua reported. The policy will also “support research into emerging technologies”, such as alternative battery compositions, compressed air and hydrogen energy storage, the Hong Kong-based South China Morning Post said. Chinese news outlet Jiemian said the policy nevertheless warned against “blind investment and disorderly development”. Critical minerals were also covered, according to Reuters, with the government pledging to “strengthen support for exploring domestic mineral resources including lithium, cobalt and nickel” and “strengthen foreign investment and cooperation” towards overseas mineral exploration. 

TIGHTENING CONTROL: Meanwhile, China also issued draft regulations which, if approved, would “tighten [its] control” over its rare-earth resources, Reuters reported, such as through “quotas for mining, smelting and separating” the minerals. Another Reuters investigation found that at least one Chinese company is following a draft proposal by the commerce ministry to restrict exports of certain technologies used to process lithium. The development, according to the Financial Times, is part of a broader move to “keep critical knowhow within [China’s] borders as trade tensions with the US and Europe escalate”, adding that the country has also “made it more difficult for some engineers and equipment to leave the country”. Environment NGO Transport & Environment has warned that Europe must develop a “regulatory framework for knowledge sharing” or else risk becoming “an assembly plant” for Chinese battery makers, another Financial Times report said. Elsewhere, the People’s Daily said China’s wind turbine exports rose 70% year-on-year in 2024, with solar and lithium battery exports showing a “strong performance”.

Spotlight 

How China’s renewable pricing reforms will affect its climate goals

China’s solar and windfarms would no longer be guaranteed sales at a fixed price linked to coal benchmarks, under a new policy released by the central government.

Under the new “sustainable new energy pricing mechanism”, new wind and solar schemes would be paid a fixed price determined at auction.

In this issue, Carbon Brief examines how the new guidelines will affect China’s energy transition.

More ‘market-oriented’

From 2026, China has announced that the price of electricity generated from solar and wind schemes will be determined according to competitive auctions.

This will replace the existing fixed rates solar and wind received for their power, which was pegged to benchmarks for coal-fired power, with the new mechanism likely making prices for renewables much cheaper than coal.

The new system resembles the two-way “contract for difference” (CfD) mechanism used in the UK and elsewhere.

This setup would allow developers to have “reasonable and stable expectations” for revenue, supporting a “healthy” industry and China’s energy transition, a government Q&A said.

Despite some reporting to the contrary, the move does not constitute a rollback of subsidies for renewables. Grid operators have paid wind and solar power the same price as for coal-fired power since 2021.

The policy also cancels mandatory energy storage requirements for new wind and solar projects, which will significantly impact demand for energy storage.

Bringing prices up to date

The change to the rules has been attributed to the sharp reduction in the cost of building new solar and windfarms.

“The coal-fired grid benchmark rate was last updated in 2017 and actually has no relationship to the generation cost of renewables,” David Fishman, senior manager at energy consultancy Lantau Group, told Carbon Brief, adding it was effectively “arbitrary”.

The government Q&A argued that renewable energy schemes operating on a fixed tariff “cannot fully reflect market supply and demand” and do not “fairly [distribute] responsibility for power system flexibility”.

No pain, no gain

The exact impact that this will have on renewable developers will depend on the implementing rules adopted by local governments, according to Lauri Myllyvirta, lead analyst at the Centre for Research on Energy and Clean Air.

In the short-term, these companies will be hit by the loss of the guaranteed demand and the need to adapt to low prices and fierce competition, Fishman told Carbon Brief.

Companies will also need to develop stronger marketing and sales capabilities, and focus on “high-efficiency” and “large-capacity” technologies, said Wang Jihong, senior counsel at law firm Zhong Lun.

This may impact China’s growing distributed solar and wind sector. Distributed projects are much more likely to be run by smaller companies who may not have the resources to adapt to the new mechanism, according to Fishman, which could cause opportunities for distributed energy to “dry up”.

At the same time, the new policy may also force renewable energy power companies to innovate – both in terms of technology, and of business models and management practices, Dr Muyi Yang, senior energy analyst for Asia at the thinktank Ember, told Carbon Brief.

Stronger in the long-term?

The new pricing system may nevertheless give wind and solar the advantage in the long-term. Reform of the power market has long been seen as crucial to increasing uptake of renewables.

Myllyvirta wrote that wind and solar, as the “most affordable” sources of power, should be able to “hold their own in competition if the rules are set right”.

Yang told Carbon Brief that the pressure of being subjected to the market could make low-carbon energy “more competitive” and “help reduce inefficient investment”, which will be a “critical factor for the long-term transition of China’s energy sector”.

But local governments would need to take steps to maintain investor confidence in the face of low prices, Fishman said. For example, significantly raising provincial renewable consumption targets could provide a strong demand signal, showing wind and solar developers that there is still a “way to make money” through increased volume.

If the government “gets the numbers just a little bit wrong”, he added, the amount of new wind and solar being added to the grid “will drop off a cliff”.

At the same time, coal-fired power plants are continuing to receive policy and financial support, in the form of guaranteed demand from long-term contracts and compensation to keep excess capacity online.

China has ramped up construction of new coal plants, with almost 100 gigawatts of new capacity expected to come online in the next few years.

If coal plants are not also exposed to competition, Myllyvirta argued, then renewables may be “crowded out from the power market”.

Fishman was more sanguine, telling Carbon Brief that the new policy may give coal plants “a little bit of a boost” in the short-term, but that China’s carbon peaking goal sets a hard deadline for reducing their role in the power system.

He added that the real competition for coal plants are other coal plants, as only the “newest, the most efficient [and] the super-critical” plants will have a future as China moves towards carbon neutrality.

A full-length version of the article is available on the Carbon Brief website.

Watch, read, listen

FARMERS PROTEST: Current affairs news outlet Sixth Tone looked at how China is reversing its “zero-tolerance stance on crop burning” in the face of backlash from farmers.

PROSPECTS FOR DIPLOMACY: Laurence Tubiana, head of the European Climate Foundation [which funds Carbon Brief] and one of the architects of the Paris Agreement, gave a lecture at the University of Oxford on her outlook for climate diplomacy and China’s role within it.

CLIMATE NATIONALISM: Environmental Politics Journal interviewed the authors of a new study on how China uses “populist narratives” in propaganda to “mitigate the political costs” of its climate policies.

HYDROPOWER HISTORY: The New Books in Environmental Studies podcast discussed the history of hydropower development in China in the early-to-mid 1900s.

Captured

New and resumed construction of coal capacity in China between 2015-2024, gigawatts. Credit: GEM and CREA.

China began building 94.5 gigawatts (GW) of new coal-power capacity and resumed 3.3GW of suspended projects in 2024, according to new research by energy thinktanks the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM) covered by Carbon Brief. This burst, spurred on mostly by investments from the coal mining industry, marks the highest level of new construction in the past 10 years, the report added.

New science 

Elderly vulnerability to temperature-related mortality risks in China

Science Advances

Intensity and duration are the most important factors to consider when assessing the impact of extreme heat on mortality risk in elderly people in China, a new study found. The authors assessed survey data of more than 27,000 “elderly Chinese citizens”, collected between 2005-2018, to determine the links between extreme heat, temperature variability and mortality risk. The authors said their paper “highlights the compound effects of rising temperatures for elderly populations”.

Weakened future surface warming in China due to national planned afforestation through biophysical feedback

npj Climate and Atmospheric Science

A new study found that afforestation in China, in line with the government’s afforestation plan, would cool the land surface by 0.21C in the day and cause nighttime heating of 0.05C. The authors used models to simulate how afforestation would affect land surface temperature in China over the coming decades. They found that under the mid-warming SSP2 scenario, afforestation will cause “significant cooling” between 2041 and 2060 – especially in winter. According to the study, the cooling would offset 3.7% of the projected increase in land surface temperature due to global warming on average, and “even overcompensates” for global warming in southwest China.

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 20 February 2025: Missed climate deadline; Clean-tech’s economic contribution; New renewables pricing system appeared first on Carbon Brief.

China Briefing 20 February 2025: Missed climate deadline; Clean-tech’s economic contribution; New renewables pricing system

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Climate Change

Not another COP-out: We must rewrite the rules of the UN climate talks

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Rebecca Brown is president and CEO of the Center for International Environmental Law. Lien Vandamme is its senior campaigner on human rights and climate change.

The world doesn’t just need stronger climate targets. It needs a fairer, faster and more accountable multilateral system to deliver climate action.

This November, with the world gathered in Belém, Brazil, for COP30, the negotiations unfold against a backdrop of a deepening climate crisis and rising frustration with the slow pace of progress.

These talks matter because the UN climate process is the world’s best platform for much-needed global action on the climate crisis. But after three decades, the process must evolve to meet the moment – which means changing the rules that too often delay action, dilute ambition and disconnect decisions from science, equity and the law.

    Powerful countries use procedural deadlock to block ambition. Polluting countries and corporations exert influence to protect their interests and weaken outcomes. And too often, the people most affected by the climate emergency are sidelined or excluded from the decisions that affect them the most.

    Given its global nature, effective multilateralism is the only way out of the climate crisis. At COP30, leaders have a choice to continue with the status quo or revise the rules to deliver climate justice.

    Reform of UN climate talks

    The case for reform is undeniable.A systemic lack of compliance and accountability demands a serious, good-faith effort to reform the system.

    For example, this year was supposed to mark a milestone, as all countries were expected to submit their new plans – known as Nationally Determined Contributions (NDCs) – to scale up their ambition, bringing us closer to truly limiting warming to 1.5°C. But around half of the plans have yet to arrive.

    UN accepts overshooting 1.5C warming limit – at least temporarily – is “inevitable”

    Many of the plans that have been submitted largely missed the mark to keep warming below the legal limit of 1.5C. They avoid the one measure that science demands: an explicit fossil fuel phaseout. And the financing that developing countries need to raise ambition in their climate plans remains scarce.

    Reforming the UN climate talks is therefore not procedural housekeeping; it is climate action. Without reform, the best science and strongest legal obligations will continue to collide with an outdated process. With reform, we can accelerate the phase-out of fossil fuels, deliver real finance at scale and protect human rights.

    Principles for reform

    Efforts are already underway. Calls for reform are coming from inside and outside the process: from civil society and experts to former negotiators and even the UNFCCC executive secretary and the COP30 presidency.

    States are also testing the waters, with a recent call from Panama to allow for majority decision-making and Vanuatu naming the need for additional architecture to force states to comply with their obligations. The momentum is real.

    But to succeed, this reform must be grounded in a few basic principles.

    First, voting needs to be possible when consensus fails. When one or two holdouts block the ambition the world needs, the majority must be allowed to move without them.

    Second, fossil fuel interests must not warp climate action priorities.  Fossil fuel and other polluting industry lobbyists outnumbered national delegations of almost every country at recent talks. It is time to enforce robust conflict of interest rules to limit the influence of those whose business model depends on delay and denial. 

    This has been done before. The World Health Organization excluded Big Tobacco from public health conversations. Climate talks should do the same with Big Oil.

    Top UN court paves way to lawsuits over inadequate climate finance

    Third, there must be meaningful accountability. Shiny declarations from states and private actors made at COPs need criteria, monitoring, and compliance. States must be held accountable for the commitments they make.

    While the Paris Agreement’s compliance mechanisms may be toothless by design, the International Court of Justice recently affirmed that states are responsible for meeting their climate obligations and can be held liable if they don’t.

    They have a choice to make: set up legitimate accountability mechanisms under the climate regime or face their responsibilities in courts around the world.

    Human rights at its core

    Finally, reform also needs to guarantee human rights protections and civic space at every COP, and make negotiations participatory, inclusive and transparent. Civil society and the public have the right to know what is being decided in their name, and to challenge decisions when they fall short.

    At its core, this reform is about restoring faith in international cooperation to solve global crises. It is about making the process stronger, fairer and more capable of delivering what science and justice require.

    Comment: It’s time for majority voting at UN climate summits

    In Belém, governments have the opportunity to begin closing the gap between promises and action, not just through stronger targets and better policies, but by changing the rules of the game.

    The science is clear. The law is clear. Now, the process must catch up.

    If COP30 is to be remembered as a turning point, it won’t be because the system was perfect, but because governments decided to make it better.

    The post Not another COP-out: We must rewrite the rules of the UN climate talks appeared first on Climate Home News.

    Not another COP-out: We must rewrite the rules of the UN climate talks

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    Climate Change

    Analysis: China’s CO2 emissions have now been flat or falling for 18 months

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    China’s carbon dioxide (CO2) emissions were unchanged from a year earlier in the third quarter of 2025, extending a flat or falling trend that started in March 2024.

    The rapid adoption of electric vehicles (EVs) saw CO2 emissions from transport fuel drop by 5% year-on-year, while there were also declines from cement and steel production.

    The new analysis for Carbon Brief shows that while emissions from the power sector were flat year-on-year, a big rise in the chemical industry’s CO2 output offset reductions elsewhere.

    Other key findings include:

    • Power-sector CO2 emissions were flat in the third quarter, even as electricity demand growth accelerated to 6.1%, from 3.7% in the first half of the year.
    • This was achieved thanks to electricity generation from solar growing by 46% and wind by 11% year-on-year in the third quarter of 2025.
    • In the first nine months of the year, China completed 240 gigawatts (GW) of solar and 61GW of wind capacity, putting it on track for a new renewable record in 2025.
    • Oil demand and emissions in the transport sector fell by 5% in the third quarter, but grew elsewhere by 10%, as the production of plastics and other chemicals surged.

    After the first three quarters of the year, China’s CO2 emissions in 2025 are now finely balanced between a small fall or rise, depending on what happens in the last quarter.

    A drop in the full-year total became much more likely after September, which recorded an approximately 3% drop in emissions year-on-year.

    Electricity demand – and associated emissions – have tended to grow fastest during the summer months, due to rapidly rising demand for air conditioning amid hotter summers.

    If this pattern repeats, then China’s CO2 emissions will record a fall for the full year of 2025.

    While an emission increase or decrease of 1% or less might not make a huge difference in an objective sense, it has heightened symbolic meaning, as China’s policymakers have left room for emissions to increase for several more years, leaving the timing of the peak open.

    Either way, China is set to miss its target to cut carbon intensity – the CO2 emissions per unit of GDP – from 2020 to 2025, meaning steeper reductions are needed to hit the county’s 2030 goal.

    Finely balanced emissions

    China’s CO2 emissions have now been flat or falling for 18 months, starting in March 2024. This trend continued in the third quarter of 2025, when emissions were unchanged year-on-year.

    This picture is finely balanced, however, with contrasting trends in different sectors of the economy underlying the ongoing plateau in CO2 emissions, shown in the figure below.

    Chart showing that China's CO2 emissions have now been flat or falling for 18 months
    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.

    Emissions from the production of cement and other building materials fell by 7% in the third quarter of 2025, while emissions from the metals industry fell 1%. This is due to the ongoing real-estate contraction, as the construction sector uses most of the country’s steel and cement output.

    Emission reductions from steel production continued to lag the reductions in output, which fell 3%. This is because the fall in demand was absorbed by the lower-carbon electric-arc steelmakers, whereas carbon-intensive coal-based steel production was less affected.

    China has struggled to increase the share of electric-arc steelmaking despite targets, due to the large capacity base and entrenched position of coal-based steelmaking crowding out the lower-emission producers.

    Power-sector emissions were unchanged year-on-year in the third quarter, as strong growth from solar and wind generation, along with small increases from nuclear and hydro, nearly matched a rapid rise in demand.

    Emissions from transport fell by 5% over the period, but oil consumption in other sectors grew by 10%, driven by chemical industry expansion. This resulted in a 2% rise in oil consumption overall.

    Gas demand and emissions grew by 3% overall in the three-month period, with consumption in the power sector up by 9% and by 2% in other sectors.

    The figure below shows how emissions in each of these sectors has changed in the first nine months of 2025, for example, power-sector CO2 output is down 2% in the year so far.

    The rapid recent growth of CO2 emissions in the chemical industry is a continuation of recent trends and, as such, the sector’s coal and oil use have both surged in 2025 to date.

    Chart showing that China's CO2 emissions in 2025 remain finely balanced, with competing trends in different sectors.
    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.

    The outlook for emissions in the final quarter of 2025 – and the year as a whole – depends on whether further declines in cement, transport and power are enough to offset increases elsewhere.

    Solar and wind growth keep power sector emissions flat

    In the power sector, China’s dominant source of CO2, emissions remained flat in the third quarter even as electricity demand grew strongly.

    Electricity generation from solar and wind grew by 30%, with solar up 46% and wind power generation increasing 11%. With small increases from nuclear and hydropower, non-fossil power sources covered almost 90% of the increase in demand, even as demand growth accelerated to 6.1% in the third quarter, up from 3.7% in the first half of the year.

    This is illustrated in the figure below, where the columns show the change in generation by each source of non-fossil power every quarter and the line shows the increase in electricity demand.

    Chart showing that clean-power sources are covering all of China's demand growth
    Columns: Year-on-year change in quarterly electricity generation from clean energy excluding hydro, terawatt hours. Solid and dashed line: Quarterly and average change in total electricity generation, TWh. Sources: China Electricity Council; Ember; analysis for Carbon Brief by Lauri Myllyvirta.

    Despite a small increase in electricity generation from fossil fuels to cover the remaining 10% of demand growth, power sector emissions stayed unchanged in the third quarter of 2025.

    This is because the average thermal efficiency of coal power – the amount of fuel per unit of output – improved slightly, while the share of gas-fired generation increased at the expense of coal.

    The figure above shows that the growth in clean-power sources has been covering all or nearly all of the rise in electricity demand in recent quarters, but once again there is a fine balance.

    As such, the outlook for the final quarter of 2025 and for power-sector emissions over the years ahead depends on the relative strength of rising demand and clean-power output.

    From 2021 to 2025, there has been a marked seasonal pattern in electricity demand growth, with more rapid rises in the summer peak “cooling season”, from June to August.

    In these months, residential electricity consumption grew by a striking 13% per year, compared with just 6% during other parts of the year. Industry and service-sector consumption also grew faster in the summer months.

    As a result, growth in total power demand has been significantly faster, at 6.8% during the summer months, compared with 4.6% in the rest of the year.

    This is due to both increased prevalence of air conditioning and to hotter summers, with the average number of “cooling-degree days” increasing by one third from 2015–16 to 2024–25, as shown in the figure below.

    Chart showing that cooling loads in China have risen by one-third in a decade
    Average number of cooling degree-days in January-September of each year. Source: Calculated by CREA from NCEP gridded daily weather data, weighted by gridded population data.

    This seasonal pattern implies that electricity consumption might ease off in the final quarter of 2025, which would set a lower bar for clean-power growth to meet or exceed rising demand.

    On the generation side, the first nine months of 2025 has seen China adding 240GW of solar and 61GW of wind power capacity. While the rate of new installations has slowed down sharply since May, China is still on track for a new record for the whole year as developers rush to complete projects included in the 14th five-year plan, which finishes at the end of 2025.

    China had 181GW of wind and 234GW of utility-scale solar under construction in early 2025, according to the Global Energy Monitor. After the capacity additions in the first nine months of 2025, this leaves 120GW of wind and 123GW of utility-scale solar under construction, much of which is likely to be commissioned this year.

    The rate of new wind and solar additions in 2025 to date is shown in the figure below, alongside comparable figures for each year since 2020.

    Charting showing that wind and solar are on track for another record in China
    Newly added solar and wind power generating capacity in China, since the start of each year, gigawatts. Source: National Energy Administration.

    The slowdown in installations in recent months is due to a new pricing system that requires developers of new solar and wind-power plants to secure contracts directly with buyers, instead of being guaranteed the benchmark price for coal power, which was the case until May.

    The change in pricing led to a major rush to complete projects faster than originally scheduled, seen in the May 2025 bump in the figure above.

    This left few projects to complete in the third quarter, meaning that the current slow pace in installations does not yet reflect the capacity growth that can be expected under the new system.

    China’s power-sector emissions have been falling slowly since early 2024, due to the rapid growth of solar and wind power generation. The unprecedentedly large capacity additions have enabled non-fossil power generation to cover electricity demand growth, but only barely.

    Any sustained slowdown in solar and wind deployment would mean that power-sector emissions would begin to creep up again, unless electricity demand slows sharply. This is not expected – the State Grid has forecast 5.6% annual demand growth until 2030, compared with 6.1% from 2019 to 2025.

    One indicator pointing towards robust ongoing solar capacity growth is that the production of solar cells has continued at or above 2024 levels – even after the slowdown in installations in recent months – growing 8% year-on-year in the third quarter.

    The amount of new solar-cell capacity produced in Chinese factories each month, minus exports, has tended to predict new domestic solar installations, with a lag.

    However, the outlook for wind and solar growth in China is clouded by a large gap between industry and government expectations for the sector.

    The China Wind Energy Association is targeting at least 120GW of wind-power capacity added per year in the next five years, while the China Photovoltaic Industry Association projects 235-270GW of solar added in 2026, rising to 280-340GW in 2030.

    In contrast, president Xi Jinping recently announced that China would “strive to” bring the county’s installed solar and wind capacity to 3,600GW by 2035. This implies just 200GW of capacity added per year over the next decade, extending a target set earlier for 2025-27.

    The pace of solar and wind deployment under the new pricing system depends heavily on the implementation of the national-level rules at the provincial level, particularly the choice of minimum pricing. Most provinces are yet to finalise their rules and only six provinces have published results from auctions for “contracts for difference” – the key policy instrument under the new rules – so far, with nine more auctions underway.

    Meanwhile, the additions of new coal and gas-fired power capacity have accelerated, as the projects started after the government loosened permitting and started to promote coal-fired power projects in 2020 are starting to complete.

    The result has been that the utilisation of coal-fired power capacity – the share of hours during which each unit is in operation – has begun to fall significantly, as power generation from coal has declined since April 2024. Utilisation peaked at 54% in the 12 months to February 2024 and fell to 51% in the 12 months to September 2025.

    Another 230GW of coal-fired power capacity is under construction. If power generation from coal continues to stay stagnant and if all of this new capacity is added to the system, then utilisation would fall to 43%. This could prompt a rethink of the government’s promotion of coal-fired power projects.

    Chemical industry’s runaway growth pushes up oil demand

    In the oil sector, there are once again competing factors at work. China’s transport oil consumption has been falling since April 2024, driven in large part by the rapid adoption of EVs.

    However, total oil consumption still increased 2% in the year to September, as a 4% fall in transport fuel use was more than offset by an 8% rise elsewhere, dominated by industrial demand.

    Consumption fell by 4-5% across each of the three main transport fuels: diesel, used in trucks and other heavy vehicles; petrol, mainly used in cars; and jet fuel.

    The reduction in petrol consumption accelerated in October, falling 8% year-on-year, erasing the usual spike seen at this time of year related to the week-long national holiday.

    Within industry, the production of primary plastics grew 12% year-on-year in the first three quarters of 2025, while the production of chemical fibres grew by 11% and the production of ethylene by 7%. The increase in the output of these products accounts for the entire increase in oil use outside the transportation sector.

    These sharp increases in chemical production are shown in the figure below.

    Chart showing that China's production of plastics and related chemicals is surging
    Chemical industry output by product, million tonnes per year, 12-month rolling totals. Source: NBS monthly industrial output data, except for primary plastics, NBS via Wind Financial Terminal.

    One clear driver of the growth in plastics production is import substitution – replacing equivalent products imported from overseas – as well as growing exports.

    China is still a net importer of primary plastics by value in 2025 so far, but only just. The value of imports fell by 8% while the value of exports increased by 8% in the first nine months of the year.

    The five-year plan for 2021-25 targeted an increase in chemicals production to reduce the imports of key raw materials to less than 40% of demand, with projects launched to meet this target coming online this year.

    More recently, the government has encouraged oil refineries to shift from the production of transport fuels to chemicals, in order to adapt to falling demand for oil in transportation. It set a target for the petrochemical and chemical sector’s economic output to grow by more than 5% per year in 2025-26.

    The US-China tariff tit-for-tat has added further momentum to import substitution. The US has been China’s largest source of imports of polyethylene – the most widely used plastic in the world – since 2023, but China has expanded its domestic production in response to the trade spat.

    Still, the change in China’s net exports of plastics cannot account for more than a fraction of the increase in output volume, however, as estimated based on reported polymer prices. This indicates that growing domestic demand is a major driver of the rapid growth in plastics production.

    Packaging is the largest use of plastics in China, with the booming online retail and food delivery industry driving rapid growth.

    Express parcel volumes grew 21% in 2024 and 17% through September 2025. The value of the single-use plastic tableware market averaged 21% annual growth from 2017 to 2022 and the revenue of the online food delivery industry is projected to grow 11% in 2025.

    The government is taking measures to curb single-use plastics, but these would need to be intensified to fully counteract the growth rates seen in food deliveries and other drivers. The demand for high-performance materials in new manufacturing industries is also a significant driver.

    Will China’s emissions peak early or rebound?

    After the third quarter of 2025, it is clear that the plateau or slow decline of China’s CO2 emissions that started in early 2024 continues.

    Whether emissions increased or decreased marginally in the first three quarters of the year is too close to call, given the uncertainties involved, but a drop in full-year emissions became much more likely after September, which recorded an approximately 3% drop in emissions year-on-year.

    Still, either a small increase or decrease in the calendar year of 2025 remains possible and will be ultimately be decided by developments in the fourth quarter.

    China’s emissions from fossil-fuel use are highly likely to increase this year, with the increase of coal and oil use in the chemical industry outweighing the reductions in emissions from the power, metals, building materials and transportation sectors. This will be balanced out by a fall in cement process emissions.

    What is already clear is that the 2025 carbon-intensity target will be missed, as it would have required absolute emission reductions of 4% or more this year, after slow progress during the earlier years of the five-year period.

    This also means that the carbon-intensity target in the next 15th five-year plan for 2026-2030 would need to be more ambitious than the one that China missed during the current period, to close the shortfall to the country’s 2030 intensity target.

    China targeted an 18% reduction in 2021-25, but will only have achieved around 12% by the end of this year. It would then need a reduction of around 22-24% in the next five years to achieve its headline climate commitment for 2030, a 65% carbon-intensity reduction on 2005 levels.

    Whether emissions fall this year – or not – has high symbolic significance. Having committed to peaking emissions “before 2030”, China’s policymakers have left their specific peaking year open.

    China’s new greenhouse gas emission target for 2035, announced by Xi in September, was set as a reduction of 7-10% below an undefined “peak level”, making it clear that policymakers are still planning for – or at least leaving the door open to – a late peak, only just before 2030.

    Setting this target from “peak levels” means that the timing and level of China’s emissions peak affects not only the path of its CO2 output in the next few years, but also the size of cuts needed to meet the 2035 goal – and presumably also subsequent targets thereafter.

    The target of reducing emissions from “peak levels” could also create an incentive for provinces to increase emissions before the expected peak year, known as “storming the peak” in Chinese.

    This incentive could be curbed by the creation of the “dual control” system for carbon intensity and total carbon emissions. The Central Committee of the Communist Party recently reiterated that this should happen during the next five-year period, but the specific timeline is an open question.

    If the system is not operational from 2026, with annual carbon intensity and possibly absolute carbon emission targets allocated to provinces, then that could further allow for and incentivise emissions increases in the short term.

    At the same time, China has made commitments to peak emissions before 2030, reduce coal consumption gradually during the 2026-30 period and to reduce carbon emissions per unit of GDP by more than 65% by 2030, from 2005 levels.

    Meeting the last target – which China has made internationally as part of its 2030 Paris pledge – would require, in practice, that emissions in 2030 are limited at or below their 2024 level, given progress to date and expected GDP growth rates.

    Realising these targets, in turn, would require clean-energy growth rates well above the minimum of 200GW of new wind and solar capacity per year, set by China’s 2035 pledge – unless the rate of energy-demand growth sees a sharp and unexpected slowdown.

    Beating these minimum clean-energy growth rates would also be necessary if policymakers want to maintain the tailwind that these sectors have provided to China’s economy in recent years.

    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, from WIND Information, an industry data provider, and Sinopec, China’s largest oil refiner.

    Wind and solar output, and 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 was 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. Cement CO2 emissions factor is based on annual estimates up to 2024.

    For oil consumption, 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, as most products are short-lived and incineration is the dominant disposal method.

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    Webinar: Carbon Brief’s first ‘ask us anything’ at COP30

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    As COP30 began in the Brazilian city of Belém, Carbon Brief hosted the first of three webinars to exclusively answer questions submitted by holders of the Insider Pass.

    Topics ranged from China’s priorities and the absence of the US through to narratives around geoengineering.

    Expected key outcomes at COP30 were also discussed, including the Tropical Forest Forever Fund (TFFF), agreed indicators under the global goal on adaptation and a “Belém action mechanism” within the just-transition work programme.

    Climate finance continued to be a key feature across the numerous topics raised, in particular in the wake of the Baku to Belém roadmap – published just five days before the start of COP30.

    The webinar featured six Carbon Brief journalists – including three on the ground in Belém – covering all elements of the summit:

    • Dr Simon Evans – deputy editor and senior policy editor
    • Daisy Dunne – associate editor
    • Josh Gabbatiss – policy correspondent
    • Anika Patel – China analyst
    • Aruna Chandrasekhar – land, food systems and nature journalist
    • Molly Lempriere – policy section editor

    A recording of the webinar (below) is now available to watch on YouTube.

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