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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

Tasks for 2026

‘GREEN RESOLVE’: The Ministry of Ecology and Environment (MEE) said at its annual national conference that it is “essential” to “maintain strategic resolve” on building a “beautiful China”, reported energy news outlet BJX News. Officials called for “accelerating green transformation” and “strengthening driving forces” for the low-carbon transition in 2026, it added. The meeting also underscored the need for “continued reduction in total emissions of major pollutants”, it said, as well as for “advancing source control through carbon peaking and a low-carbon transition”. The MEE listed seven key tasks for 2026 at the meeting, said business news outlet 21st Century Business Herald, including promoting development of “green productive forces”, focusing on “regional strategies” to build “green development hubs” and “actively responding” to climate change.

CARBON ‘PRESSURE’: China’s carbon emissions reduction strategy will move from the “preparatory stages” into a phase of “substantive” efforts in 2026, reported Shanghai-based news outlet the Paper, with local governments beginning to “feel the pressure” due to facing “formal carbon assessments for the first time” this year. Business news outlet 36Kr said that an “increasing number of industry participants” will have to begin finalising decarbonisation plans this year. The entry into force of the EU’s carbon border adjustment mechanism means China’s steelmakers will face a “critical test of cost, data and compliance”, reported finance news outlet Caixin. Carbon Brief asked several experts, including the Asia Society Policy Institute’s Li Shuo, what energy and climate developments they will be watching in 2026.   

COAL DECLINE: New data released by the National Bureau of Statistics (NBS) showed China’s “mostly coal-based thermal power generation fell in 2025” for the first time in a decade, reported Reuters, to 6,290 terawatt-hours (TWh). The data confirmed earlier analysis for Carbon Brief that “coal power generation fell in both China and India in 2025”, marking the first simultaneous drop in 50 years. Energy news outlet International Energy Net noted that wind generation rose 10% to 1,053TWh and solar by 24% to 1,573TWh. 

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EV agreement reached

‘NORMALISED COMPETITION’?: The EU will remove tariffs on imports of electric vehicles (EV) made in China if the manufacturers follow “guidelines on minimum pricing” issued by the bloc, reported the Associated Press. China’s commerce ministry stated that the new guidelines will “enable Chinese exporters to address the EU’s anti-subsidy case concerning Chinese EVs in a way that is more practical, targeted and consistent with [World Trade Organization] rules”, according to the state-run China Daily. An editorial by the state-supporting Global Times argued that the agreement symbolised a “new phase” in China-EU economic and trade relations in which “normalised competition” is stabilised by a “solid cooperative foundation”. 

SOLAR REBATES: China will “eliminate” export rebates for solar products from April 2026 and phase rebates for batteries out by 2027, said Caixin. Solar news outlet Solar Headlines said that the removal of rebates would “directly test” solar companies’ profitability and “fundamentally reshape the entire industry’s growth logic”. Meanwhile, China imposed anti-dumping duties on imports of “solar-grade polysilicon” from the US and Korea, said state news agency Xinhua

OVERCAPACITY MEETINGS: The Chinese government “warned several producers of polysilicon…about monopoly risks” and cautioned them not to “coordinate on production capacity, sales volume and prices”, said Bloomberg. Reuters and China Daily covered similar government meetings on “mitigat[ing] risks of overcapacity” with the battery and EV industries, respectively. A widely republished article in the state-run Economic Daily said that to counter overcapacity, companies would need to reverse their “misaligned development logic” and shift from competing on “price and scale” to competing on “technology”.

High prices undermined home coal-to-gas heating policy

SWITCHING SHOCK: A video commentary by Xinhua reporter Liu Chang covered “reports of soaring [home] heating costs following coal-to-gas switching [policies] in some rural areas of north China”. Liu added that switching from coal to gas “must lead not only to blue skies, but also to warmth”. Bloomberg said that the “issue isn’t a lack of gas”, but the “result of a complex series of factors including price regulations, global energy shocks and strained local finances”.

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HEATED DEBATE: Discussions of the story in China became a “domestically resonant – and politically awkward – debate”, noted the current affairs newsletter Pekingnology. It translated a report by Chinese outlet Economic Observer that many villagers in Hebei struggled with no access to affordable heating, with some turning back to coal. “Local authorities are steadily advancing energy supply,” People’s Daily said of the issue, noting that gas is “increasingly becoming a vital heating energy source” as part of China’s energy transition. Another People’s Daily article quoted one villager saying: “Coal-to-gas conversion is a beneficial initiative for both the nation and its people…Yet the heating costs are simply too high.”

DEJA-VU: This is not the first time coal-to-gas switching has encountered challenges, according to research by the Oxford Institute for Energy Studies, with nearby Shanxi province experiencing a similar situation. In Shanxi, a “lack of planning, poor coordination and hasty implementation” led to demand outstripping supply, while some households had their coal-based heating systems removed with no replacement secured. Others were “deterred” from using gas-based systems due to higher prices, it said.

More China news

  • LOFTY WORDS: At Davos, vice-premier He Lifeng reaffirmed commitments to China’s “dual-carbon” goals and called for greater “global cooperation on climate change”, reported Caixin
  • NOT LOOKING: US president Donald Trump, also at Davos, said he was not “able to find any windfarms in China”, adding China sells them to “stupid” consumers, reported Euronews. China installed wind capacity has ranked first globally “for 15 years consecutively”, said a government official, according to CGTN
  • ‘GREEN’ FACTORIES: China issued “new guidelines to promote green [industrial] microgrids” including targets for on-site renewable use, said Xinhua. The country “pledged to advance zero-carbon factory development” from 2026, said another Xinhua report.
  • JET-FUEL MERGER: A merger of oil giant Sinopec with the country’s main jet-fuel producer could “aid the aviation industry’s carbon reduction goals”, reported Yicai Global. However, Caixin noted that the move could “stifl[e] innovation” in the sustainable air fuel sector.
  • NEW TARGETS: Chinese government investment funds will now be evaluated on the “annual carbon reduction rates” achieved by the enterprises or projects they support, reported BJX News.
  • HOLIDAY CATCH-UP: Since the previous edition of China Briefing in December, Beijing released policies on provincial greenhouse gas inventories, the “two new” programme, clean coal benchmarks, corporate climate reporting, “green consumption” and hydrogen carbon credits. The National Energy Administration also held its annual work conference

Spotlight 

Why gas plays a minimal role in China’s climate strategy

While gas is seen in some countries as an important “bridging” fuel to move away from coal use, rapid electrification, uncompetitiveness and supply concerns have suppressed its share in China’s energy mix.

Carbon Brief explores the current role of gas in China and how this could change in the future. The full article is available on Carbon Brief’s website.

The current share of gas in China’s primary energy demand is small, at around 8-9%

It also comprises 7% of China’s carbon dioxide (CO2) emissions from fuel combustion, adding 755m tonnes of CO2 in 2023 – twice the total CO2 emissions of the UK. 

Gas consumption is continuing to grow in line with an overall uptick in total energy demand, but has slowed slightly from the 9% average annual rise in gas demand over the past decade – during which time consumption more than doubled.

The state-run oil and gas company China National Petroleum Corporation (CNPC) forecast in 2025 that demand growth for the year may slow further to just over 6%. 

Chinese government officials frequently note that China is “rich in coal” and “short of gas”. Concerns of import dependence underpin China’s focus on coal for energy security.

However, Beijing sees electrification as a “clear energy security strategy” to both decarbonise and “reduce exposure to global fossil fuel markets”, said Michal Meidan, China energy research programme head at the Oxford Institute for Energy Studies

A dim future?

Beijing initially aimed for gas to displace coal as part of a broader policy to tackle air pollution

Its “blue-sky campaign” helped to accelerate gas use in the industrial and residential sectors. Several cities were mandated to curtail coal usage and switch to gas. 

(January 2026 saw widespread reports of households choosing not to use gas heating installed during this campaign despite freezing temperatures, due to high prices.)

Industry remains the largest gas user in China, with “city gas” second. Power generation is a distant third.

The share of gas in power generation remains at 4%, while wind and solar’s share has soared to 22%, Yu Aiqun, research analyst at the thinktank Global Energy Monitor, told Carbon Brief. She added: 

“With the rapid expansion of renewables and ongoing geopolitical uncertainties, I don’t foresee a bright future for gas power.”

However, gas capacity may still rise from 150 gigawatts (GW) in 2025 to 200GW by 2030. A government report noted that gas will continue to play a “critical role” in “peak shaving”. 

But China’s current gas storage capacity is “insufficient”, according to CNPC, limiting its ability to meet peak-shaving demand. 

Transport and industry

Gas instead may play a bigger role in the displacement of diesel in the transport sector, due to the higher cost competitiveness of LNG – particularly for trucking. 

CNPC forecast that LNG displaced around 28-30m tonnes of diesel in the trucking sector in 2025, accounting for 15% of total diesel demand in China. 

However, gas is not necessarily a better option for heavy-duty, long-haul transportation, due to poorer fuel efficiency compared with electric vehicles. 

In fact, “new-energy vehicles” are displacing both LNG-fueled trucks and diesel heavy-duty vehicles (HDVs). 

Meanwhile, gas could play a “more significant” role in industrial decarbonisation, Meidan told Carbon Brief, if prices fall substantially.

Growth in gas demand has been decelerating in some industries, but China may adopt policies more favourable to gas, she added.

An energy transition roadmap developed by a Chinese government thinktank found gas will only begin to play a greater role than coal in China by 2050 at the earliest.

Both will be significantly less important than clean-energy sources at that point.

This spotlight was written by freelance climate journalist Karen Teo for Carbon Brief.

Watch, read, listen

EV OUTLOOK: Tu Le, managing director of consultancy Sino Auto Insights, spoke on the High Capacity podcast about his outlook for China’s EV industry in 2026.

‘RUNAWAY TRAIN’: John Hopkins professor Jeremy Wallace argued in Wired that China’s strength in cleantech is due to a “runaway train of competition” that “no one – least of all [a monolithic ‘China’] – knows how to deal with”.

‘DIRTIEST AND GREENEST’: China’s energy engagement in the Belt and Road Initiative was simultaneously the “dirtiest and greenest” it has ever been in 2025, according to a new report by the Green Finance & Development Center.

INDUSTRY VOICE: Zhong Baoshen, chairman of solar manufacturer LONGi, spoke with Xinhua about how innovation, “supporting the strongest performers”, standards-setting and self-regulation could alleviate overcapacity in the industry.


$574bn

The amount of money State Grid, China’s main grid operator, plans to invest between 2026-30, according to Jiemian. The outlet adds that much of this investment will “support the development and transmission of clean energy” from large-scale clean-energy bases and hydropower plants.


New science 

  • The combination of long-term climate change and extremes in rainfall and heat have contributed to an increase in winter wheat yield of 1% in Xinjiang province between 1989-2023 | Climate Dynamics
  • More than 70% of the “observed changes” in temperature extremes in China over 1901-2020 are “attributed to greenhouse gas forcing” | Environmental Research Letters

China Briefing is written by Anika Patel and edited by Simon Evans. Please send tips and feedback to china@carbonbrief.org 

The post China Briefing 22 January 2026: 2026 priorities; EV agreement; How China uses gas appeared first on Carbon Brief.

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Analysis: UK’s EV drivers are now saving £1,100 each a year – and £3bn in total

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Amid reports that the government could weaken the UK’s electric vehicle (EV) targets, Carbon Brief analysis reveals the nation’s EV drivers are saving more than £1,100 a year in fuel costs, compared with running a petrol car.

Battery EVs (BEVs) are roughly four times more efficient than combustion-engine cars, making them far cheaper to run – particularly since the Iran crisis caused a spike in fossil-fuel prices.

The savings from driving BEVs are also more than three times higher than for “plug-in” hybrids (PHEVs), which evidence shows are mostly driven with their combustion engines.

In total, the more than 2m BEVs, 1m PHEVs and 100,000 electric vans on UK roads are saving drivers around £3bn a year, Carbon Brief’s analysis shows, as illustrated in the figure below.

In addition, these EVs are avoiding the need for nearly 2.5bn litres of fuel and cutting carbon dioxide (CO2) emissions by nearly 7m tonnes each year.

Total annual fuel cost savings from the UK’s fleet of battery EVs, plug-in hybrids and electric vans, £bn. Figures for 2026 based on EVs on the road as of May 2026 and the latest road fuel prices. Analysis based on 80% home charging at cheap overnight rates and 20% public charging. Savings can reach £1,400 a year with exclusive home charging. Source: Carbon Brief analysis.

Despite recent news that EVs are now cheaper to buy than petrol cars, as well as having far lower running costs, BBC News says the government is “set to water down” its EV sales targets.

The broadcaster explains that the current goal, under the UK’s “zero-emissions vehicle” (ZEV) mandate, is for 80% of new car sales to be BEVs by 2030.

It says that the government is set to consult on weakening this to between 50% and 70%, following “lobbying” by carmakers and trade unions.

According to the Sunday Times, prime minister Keir Starmer “is understood to have overruled the energy secretary [Ed Miliband] after sustained pressure from industry, the Unite union and Peter Kyle, the business secretary”.

The car industry has consistently claimed there is insufficient demand for BEVs to meet the targets under the ZEV mandate, yet the government says manufacturers have “over-complied” to date. Independent analysts say the industry is on track to continue beating the ZEV mandate goals.

The industry has been able to beat its targets by using a wide range of “flexibilities”, which were introduced after a previous round of lobbying. These allow carmarkers to meet part of their EV targets by selling more efficient combustion cars, such as hybrids and plug-in hybrids.

The ZEV mandate is the single-largest part of the government’s plans to meet its legally binding climate goals over the next decade.

The advisory Climate Change Committee (CCC) previously warned that the extra flexibilities would result in a larger number of hybrids being sold, at the expense of battery EVs.

When it consulted on the ZEV mandate in 2023, the then-Conservative government noted that PHEVs do not deliver the cost and CO2 savings they are advertised with.

It pointed to “dramatic” differences between the performance of PHEVs in test cycles and what they deliver under real-world conditions.

In practice, less than a third of miles driven in PHEVs are fuelled by electricity, with petrol making up the rest. As a result, cost and CO2 savings from BEVs are three times larger than for PHEVs.

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UN’s first Paris Agreement carbon credits face human rights and climate concerns

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Civil society groups have called for an investigation into the first carbon credits approved under a new UN mechanism, alleging the project is linked to Myanmar’s military junta – which the UN says is guilty of human rights abuses – and has “massively” overstated its climate impact.

The programme, which aims to cut emissions by distributing efficient cookstoves across Myanmar, received approval to issue around 650,000 carbon credits from the Article 6.4 Supervisory Body in February, in a landmark moment for the Paris Agreement’s carbon market. Only two projects have been given the green light by the mechanism’s regulator so far.

But two reports published last week, led by the Global Forest Coalition and Brussels-based NGO Carbon Market Watch, raised serious concerns about the project’s implementation in conflict zones where civilians have faced airstrikes and mass displacement as well as its emission-reduction calculations.

Project continued after military coup

Myanmar has been ravaged by a brutal civil war since the country’s military overthrew the democratically elected government in a coup d’état in February 2021. The military regime has attacked civilian populations, persecuted ethnic minorities and committed widespread sexual violence, among other serious human rights violations, the UN Special Rapporteur on the situation of human rights in Myanmar said in April.

The cookstove programme started in 2018 under the previous UN-run carbon offsetting scheme – the Clean Development Mechanism (CDM) – as a partnership between Myanmar’s Ministry of Natural Resources and Environmental Conservation (MONREC) and the Climate Change Center (CCC), a South Korean NGO, with investment from private South Korean firms.

    The project continued operating after the coup. For most of the period between 2021 and 2022 in which the issued credits were generated, MONREC was led by Colonel Khin Maung Yi, who was sanctioned by the European Union in 2021 for supporting the military regime, the Global Forest Coalition report said.

    CCC acknowledged engaging with government authorities after the coup but said this “should not be interpreted as political endorsement” of the junta. The South Korean NGO added that abandoning the programme when political circumstances changed “would not necessarily have been the most responsible outcome for the households involved”.

    Conflict prevents on the ground verification

    The Global Forest Coalition report raised particular concerns about the project’s implementation in Myanmar’s central Dry Zone, including Sagaing Region, an anti-junta resistance stronghold that has been most heavily affected by the conflict and routinely targeted by airstrikes and violent attacks. The region accounts for more than a third of Myanmar’s 3.8 million internally displaced people.

    The NGOs said that, in addition to ethical concerns about carbon credits being produced by the military government in an area actively affected by its attacks, this raises questions over the ability to effectively verify the climate integrity of the projects.

    TAK, THAILAND – JANUARY 01: Internally displaced people (IDP) from Myanmar carrying bags of donated supplies from Thailand while crossing the Moei river as seen from behind a fence with razor wire on the river bank in Mae Sot, a district at the Thai-Myanmar border on new year on January 1, 2022 in Tak, Thailand. (Photo by Sirachai Arunrugstichai/Getty Images)

    TAK, THAILAND – JANUARY 01: Internally displaced people (IDP) from Myanmar carrying bags of donated supplies from Thailand while crossing the Moei river as seen from behind a fence with razor wire on the river bank in Mae Sot, a district at the Thai-Myanmar border on new year on January 1, 2022 in Tak, Thailand. (Photo by Sirachai Arunrugstichai/Getty Images)

    Before carbon credits are issued, external auditors need to validate the claims made by project developers and confirm that the emission reductions claimed are correct. This process usually includes site visits to a representative sample of households to check how the improved cookstoves are being used.

    But, because of the “volatile political situation” in Myanmar, the auditing team was not able to leave the capital Yangon and could only speak to project participants remotely via Zoom, project documents show.

    “Due to ongoing armed conflict on the ground, the data currently used to justify carbon credit issuance in Sagaing by the Burmese military junta is unverifiable and highly likely fraudulent,” said Zaw Tuseng, founder and president of the Myanmar Policy Institute, which contributed to the report, in a written statement. “This demands an immediate suspension of credit transfers until a neutral, conflict-sensitive audit can be conducted.”

    “Exceptional circumstances”

    CCC told Climate Home News that, although it recognises that on-site verification is “generally preferable, particularly in complex operating environments”, the decision to opt for remote controls was not taken “as a discretionary shortcut, but as an approved alternative under exceptional circumstances”.

    The South Korean NGO added that it reviewed the feasibility of the project at community level “on an ongoing basis” and it “did not identify conflict-related incidents that directly affected project implementation activities in participating communities during the monitoring period”.

    A spokesperson for the UN climate change body told Climate Home News that, when site access is not possible, the UN carbon credit mechanism allows for “alternative verification approaches while still maintaining conservative assumptions and environmental integrity safeguards”. “These provisions ensure that crediting can only proceed where evidence is reliable,” they added.

    Contested methodology

    Carbon markets are seen as an important channel to raise money to help low-income communities in developing countries switch to less polluting cooking methods, both reducing CO2 emissions and improving air quality. But several cookstove offsetting projects have faced criticism from researchers and campaigners who argue that climate benefits are often exaggerated and weak monitoring can undermine claims of real emission reductions.

    The project in Myanmar uses a contested methodology developed under the earlier Kyoto Protocol that was rejected last year by The Integrity Council for the Voluntary Carbon Market (ICVCM), a watchdog that issues quality labels to carbon credit types, because it found it “insufficiently rigorous”.

    EU carbon credits could supercharge world’s clean cooking push, France says

    After transitioning from the CDM to the new mechanism, the project was required to apply “more conservative” assumptions to calculate emission reductions, which resulted in 40% fewer credits being issued, according to the UN climate change body.

    “The result is consistent with environmental integrity requirements and ensures that each credited tonne genuinely represents a tonne reduced and contributes to the goals of the Paris Agreement,” Mkhuthazi Steleki, the South African chair of the Article 6.4 Supervisory Body, which oversees the mechanism, said in February.

    Too many credits issued

    But Carbon Market Watch claimed in a second report last week that, despite the adjustment, the project is still likely to issue seven times more credits than its real climate impact justifies, comparing its calculations with values from peer-reviewed scientific literature.

    The biggest driver of the credit inflation, the group said, is the failure to account for “stacking” – the widespread practice of households using multiple stoves at the same time, including more polluting ones the project does not monitor.

    Peer-reviewed science considers a stacking rate of 68% a conservative assumption, but the methodology used by the Myanmar programme makes no allowance for it at all, the report said.

    CCC disputed those findings. In a written response to Climate Home News, it said the project was developed under methodologies approved within the UN climate framework and that external recalculations by researchers are not “determinative of the level of crediting achieved”.

    The credits are expected to be used primarily by major South Korean polluters to meet obligations under the country’s emissions trading system – a move that will also enable the government to count those units toward emissions reduction targets in its nationally determined contribution (NDC), the UN climate body told Climate Home News.

    Myanmar will use the remaining credits to achieve in part the goals of its own national climate plan under the Paris Agreement.

    “Over-crediting, at any magnitude, cannot be compatible with the climate ambition of a world striving to limit global warming to 1.5ºC,” said Isa Mulder, an expert at Carbon Market Watch.

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    Bonn Bulletin: Ministry divisions complicate Brazil’s roadmap away from fossil fuels

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    In a packed room last Friday, the COP30 Presidency presented preliminary elements of the work on the global roadmap for the transition away from fossil fuels and some European and small island governments argued the roadmap should be integrated into the formal negotiation process. But besides the global work, how is Brazil’s national roadmap coming along?

    “The presidential order [by Lula at COP30] was that the ministries of environment, finance and energy should work together,” Flávia Bellaguarda, extraordinary advisor to Brazil’s environment ministry, told Climate Home News in Bonn.

    “We do have different points of view about what the roadmap means. We have to face our contradictions and bring them to the table because the roadmap is about energy security, economic security, social security,” she said, adding that “we have reached a common place of the guidelines of what must be addressed on the roadmap”.

    Those guidelines—that Bellaguarda couldn’t share yet—are now under revision by the Brazilian presidency and then will be analysed by the National Energy Policy Council (CNPE). After those revisions, the three ministries will begin working on the roadmap itself and its governance. That work will include consultations with different stakeholders, including representatives of the energy sector and civil society organisations.

    The Brazilian government still prefers not to give dates for these next steps because “they do not expect it to be something quick,” but rather to respect the steps and time that the process requires.

    Roadmaps to transition away from fossil fuels are, at least for now, voluntary for each country. “There is no right and wrong on how to do the roadmap. Countries know what is best for each reality,” said Bellaguarda, encouraging countries to advance on their national roadmaps alongside the global one. “It’s not easy to address the issue nationally, but it’s totally necessary.”

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