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After holding stable for two years, China’s carbon emissions may climb back up as the construction of new fossil fuel power plants accelerates and recent policy changes cloud the outlook for clean energy, a new report warned.
The world’s biggest carbon polluter is expected to keep total emissions flat in 2025 despite rising energy demand – a sign that clean power may, for the first time, fully offset the growth in electricity consumption, the analysis by the Centre for Research on Energy and Clean Air (CREA) showed.
But the Finland-based research group cautioned that a “concerning” policy environment for the next few years increased the risk of an emissions rebound. It added that China was also set to miss its key target for cutting carbon intensity – CO2 emissions per unit of gross domestic product – this year, meaning steeper reductions will be needed to hit its headline 2030 climate goal of slashing carbon intensity by 65%.
Belinda Schäpe, China policy analyst at CREA, said it was unclear how strongly committed China remained to its targets, despite leaders’ assertions that the government always makes good on its climate promises.
“All of this uncertainty raises a lot of questions around where emissions are going,” Schäpe told Climate Home News. “At the moment, it’s very finely balanced. They are just about flat but could well go up or down again based on the decisions that the government will make.”
New pricing model for renewables
Record solar energy installations and strong growth in wind power capacity have increased the share of non-fossil fuel electricity this year, with emissions from the power sector set to decline for the first time since 2016, the report said. But that progress has been partially countered by the rapidly growing use of coal for the production of plastics and other chemical products, meaning overall emissions are expected to remain stable.
At the same time, experts have warned that China’s new pricing system for solar and wind projects risks slowing the clean energy boom. Under the new policy introduced last June, developers of new solar and wind power plants need to secure contracts with provincial authorities through competitive auctions, instead of being guaranteed a fixed price.
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Schäpe said prices had been “very, very low” in some of the auctions so far. “Of course, that’s great for consumers, but it’s really bad for project developers because they don’t want to go ahead and invest in new projects facing the risk of no returns,” she said.
Earlier this year, the International Energy Agency (IEA) cut its forecast for China’s 2025-2030 renewables growth by 5% due to the changes in the pricing model. The watchdog’s head Fatih Birol said the profitability of renewables projects – especially solar and wind – was expected to decline between 10% and 15% with the new policy.
Coal power boom continues
Coal power plants, on the other hand, are protected from this market-based system, relying instead on long-term power purchase agreements that lock in prices, Schäpe said, describing it as “unfair competition”.
China’s rapidly expanding coal power fleet is adding to the concerns. In 2025, the country has added the largest amount of coal-fired capacity since 2015, while progress on retiring older plants remains very slow, CREA’s report highlighted.
This runs contrary to a pledge made by President Xi Jinping in 2021 to “strictly control” new coal power projects. That commitment was omitted from Beijing’s updated national climate plan (NDC) submitted in late October ahead of COP30.
In its new NDC, China set an absolute emission reduction target for the first time, committing to cutting its greenhouse gas emissions by between 7% and 10% by 2035 from unspecified “peak levels”.
Focus on next five-year plan
Schäpe said that the absence of a base year could create an incentive to raise emissions and “storm the peak” – pushing them as high as possible to make future reduction targets easier to meet.
She said this put the focus on China’s 2030 carbon intensity target, adding that if Beijing was still serious about meeting it, emissions would need to peak “around now”.
China targeted an 18% reduction between 2021 and 2025, but it is projected to achieve about 12% by the end of this year, CREA’s report said. If that is confirmed, China will then need to significantly ramp up efforts to cut carbon intensity in the next five years to achieve its headline climate commitment for 2030.
Analysts expect China’s new five-year plan – the blueprint for its economic development – to provide more clarity on the country’s energy policies next year.
“We will see how the government is going to balance these two opposing forces: the outgoing coal industry interests and the new cleantech sectors that are meant to become the driver of future growth,” Schäpe said.
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China risks emissions rebound amid policy shifts, experts warn
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Prepared by a coalition of nine Western Australian union, industry, conservation, and community organisations—including UnionsWA, the Conservation Council WA, and the Smart Energy Council—the WA Clean Energy, Jobs & Industry Plan provides a practical roadmap to transform Western Australia into a clean energy powerhouse while creating thousands of secure local jobs.
Western Australia stands at a pivotal crossroads: lead the global clean energy economy or watch investment, future industries, and secure jobs go elsewhere. The WA Clean Energy, Jobs & Industry Plan outlines a transformative blueprint to harness the state’s world-class solar and wind resources. Discover how legislated renewable targets, green iron manufacturing, and a dedicated regional training strategy can generate tens of thousands of local jobs, lower household bills, and build a resilient, net-zero future for all Western Australians.
WA needs a clear and forward-thinking plan if it is going to become a competitive renewable energy powerhouse and maintain its economic strength through the energy transition.
“Western Australians know a faster renewable energy transition will lower their household expenses and prevent harmful climate pollution. But the community also needs clear direction to ensure this transition will create jobs, lower costs and not cause undue environmental harm.
“Here, sectors representing a broad range of interests have laid the groundwork for those outcomes, clearly outlining what is needed to create a future for WA that is good for the environment, for the climate, for workers and for the economy.
Summary
The WA Clean Energy, Jobs & Industry Plan sets out a strategic roadmap to position Western Australia as a global clean energy superpower while creating thousands of secure local jobs.
The report establishes three overarching goals:
- Creating local employment.
- Maintaining industrial competitiveness.
- Lowering household energy costs
To realize this vision, the framework details actionable measures to follow on from the recent WA Government announcement of a 75% Renewable Energy Target by 2031 for the South West Interconnected System. This includes developing a statewide Renewable Energy Target, coordinating statewide workforce and training pipelines, strategically planning regional infrastructure to safeguard high-value biodiversity and cultural heritage, and ensuring equitable benefit-sharing through household electrification incentives and First Nations equity partnerships. Ultimately, the plan highlights that establishing clear policy and regulatory certainty will unlock lower energy bills, boost power reliability, and secure the state’s global competitiveness in emerging green commodity export markets.
Key Findings
- Statewide Renewable Energy Target and Emissions Reduction Targets: The report calls for a statewide RET and 1.5°C aligned emission reduction targets to remove policy risk, lower capital costs, and attract clean energy investment.
- Transformative Job Creation: Accelerating the transition offers massive employment prospects, including up to 8,800 solar and battery jobs by 2050, as well as 24,000 ongoing and 11,000 construction jobs in a commercial green iron industry.
- Industrial Electrification & Competitiveness: Requiring large gas users to adopt binding electrification timetables and providing concessional financing will protect existing energy-intensive manufacturers from rising energy costs and impending domestic gas shortfalls.
- Green Commodity Export Leadership: Western Australia can build new export markets in green iron, green ammonia, and offshore oil/gas decommissioning by constructing shared common-user infrastructure and setting dedicated Green Commodity Export Targets.
- Coordinated Workforce & Training Pipeline: To address critical skill shortages the plan recommends establishing a WA Clean Energy Jobs Plan 2050, three regional training hubs, and dedicated pathways for female and under-represented apprentices.
- Environmental Safeguards & Community Benefits: Fast-tracked development must be paired with State Planning Policies that avoid high-biodiversity and cultural heritage lands, mandate new data centres to run on additional renewable power, and deliver household electrification rebates and First Nations equity partnerships.
What you can do
WA has an opportunity to lead on sustainable, clean energy and associated industries. You can help by:
- Sending an email to Environment Minister Murray Watt and Prime Minister Anthony Albanese, calling on them to reject Browse.
- Sharing this story to help more Australians understand what’s at stake.
- Encouraging your friends and family to take action.
Countries have completed the first “global review” of their progress towards reversing nature loss by 2030 at the COP17 biodiversity talks in Yerevan, Armenia.
The review “notes with deep concern” that, unless action is “rapidly accelerated”, the goal to reverse nature loss and meet a set of 23 targets by 2030 “will not be achieved”.
It “urges” countries to accelerate action, including by “increased ambition in addressing the gaps”.
Much of the discussions in Yerevan focused on how to raise the necessary funds to help developing countries protect nature.
Some major economies pushed to expand the range of nations that are expected to provide finance, with countries agreeing at the end of the two weeks of talks that non-donors that want to contribute can “signal interest” before COP18.
This came after developed countries failed to meet a target to significantly ramp up nature finance over the last few years.
It also came as a landmark fund agreed at COP16 in Colombia to pay communities for the genetic resources derived from nature stands nearly empty two years on.
The Yerevan talks marked the halfway point of the “Kunming-Montreal Global Biodiversity Framework” (GBF), the “Paris Agreement for nature” first made in 2022 and due to be achieved by 2030.
During the nearly 12-hour-long final plenary, countries voted for Quito, Ecuador, to host the COP18 nature talks, which will be held in 2028.
Countries managed to sign off on all the major negotiation texts, marking a stark contrast to COP16, which ran so far over time that the Colombian presidency lost “quorum”, forcing talks to resume in Rome months later.
Below, Carbon Brief has detailed analysis of all of the key outcomes from COP17.