Following several years of strong growth, heat pump markets slowed in Europe in 2023.
In previous articles for Carbon Brief, we discussed this initial surge in 2021 and explored the impact of the energy crisis in 2022.
Yet, despite a drop in heat pump sales in key European regions, the trends in 2023 are more nuanced than an outright downturn.
Heat pumps generally increased their position relative to fossil heating systems and, in some of the continent’s biggest heating markets, they saw continued growth.
If policymakers want to keep the transition to low-carbon heating on track, then thorough, consistent and coordinated policy efforts remain critical to scaling up heat pump markets.
Heat pumps in Europe falling short of 1.5C path
In 2023, the heat pump market’s expansion in Europe hit a plateau, as shifts in policy, changing energy prices, a stagnating economy and backlash against climate initiatives adversely affected sales in several nations.
Across the continent, there was a general downturn in sales by about 5% compared with a year earlier, as shown in the figure below.

The impact was more pronounced in the segment of air-source heat pumps for space heating, with a 12% decrease in air-to-water and a 10% fall in air-to-air sales.
Conversely, the segment for hot water heat pumps – those used for heating water for use in the home – saw significant growth, surging by nearly 20%.
However, while still high in historical terms, these sales are far from what is required to meet climate goals.
The EU will need around 60m heat pumps by 2030 to get on track for net-zero by 2050, according to modelling from the European Commission.
The aggregated statistics presented above show that, as of the end of 2023, there were roughly 23m heat pumps across the 21 EU nations included in the data. (The figures also include, under “Rest of Europe”, three non-EU countries, the UK, Norway and Switzerland, while excluding smaller EU markets.)
This means that an average of around six million installations would be needed per year out to 2030, in order to hit the 60m milestone, whereas the current pace of growth is closer to 2.5m per year.
Trends in 2023 went in the opposite direction to what would be required. Among the countries accounting for the largest decline in sales were Italy, Finland and Poland, as shown in the figure below.
According to market statistics from the European Heat Pump Association (EHPA), Italian sales fell to around 345,000 units in 2023, compared to 514,000 the previous year, a decrease of 33%.
In Finland, some 114,000 heat pumps were sold compared to nearly 200,000 in 2022. And in Poland, the market fell to 129,000 units after reaching 208,000 in 2022.

While the European market contracted overall, several individual countries saw strong market growth. In Germany, sales increased by 60% year-on-year from 276,000 in 2022 to 439,000 in 2023.
In the Netherlands, 154,000 heat pumps were sold, a 53% increase on 2022 levels of roughly 100,000. Belgium experienced Europe’s largest market increase at 72%, breaking through 100,000 sales in one year for the first time.
In the UK, trade group the Heat Pump Association reported annual growth of 4% to reach more than 60,000 units sold. This data includes air-to-water and ground-source heat pumps, but does not account for air-to-air and is, therefore, incomplete.
Heat pumps gain market share
The decrease in the European heat pump sales in 2023 is moving in the opposite direction to what would be required to meet Europe’s decarbonisation goals. Nevertheless, the overall picture is more nuanced than this contrast suggests.
For example, in certain countries where homes are predominantly heated by fossil fuels, heat pumps have continued to gain market share.
France is the leader in this regard. The market share of heat pumps has been steadily growing over the past decade, with more heat pumps sold than gas and oil boilers for the first time in 2022.
This French trend continued in 2023 – as shown in the top left corner of the figure below. Fossil fuel boiler sales fell sharply by 23%, allowing heat pumps to reach 61% of the heating market despite also seeing a small fall in sales.
Germany (top right) has seen the heat pump market share steadily increasing year-on-year from around 10% in 2014 to 33% in 2023. Despite a booming fossil heating market, enough heat pumps were sold in 2023 that their market share continued to grow.
In Poland (centre left), although the market share of heat pumps plateaued in 2023, it has risen significantly to 40%, from just 10% in 2018. The Netherlands (bottom left) has also seen a rapid shift, with a heat pump market share of 18% in 2023, compared to just 1% in 2014.
Italy’s heat pump market share (centre right), which is more stable, contracted in 2023 after two years of growth. In the UK (bottom right), heat pumps have roughly tripled their market share in five years, but from a very low base. Excluding air-to-air heat pump sales, only around 60,000 units were sold in 2023, with a current market share of roughly 3%.
Considering all six countries together – the largest markets for heating installations, all of which still have gas boilers as their predominant heating technology – the market share of heat pumps has tripled from around 8% in 2013 to 24% in 2023.

A challenging outlook
European countries are facing diverse challenges to growing heat pump sales. The plateauing of heat pump sales in France, Europe’s largest market, is a key example of this.
On the one hand, the French government cut funding to one of the main heat pump support programmes by €1.4bn while announcing an increase in electricity tariffs. On the other, the regulator also announced a hike in gas tariffs, linking it directly to a decrease in gas consumption, among other factors, including the removal of a price cap.
This indicates an escalating financial vulnerability for customers remaining on the gas network in France. The heating industry expects a further contraction of the boiler market in 2024, although not at the pace seen in 2022-2023.
Elsewhere, the 2022-2023 heat pump market surge in Germany is not expected to continue, RAP analysis suggests. Already in the latter half of 2023, installations had slowed compared to the previous year, as had applications for the country’s subsidy programme.
This is largely linked to Germany watering down its Building Energy Act. It remains to be seen to what extent mandatory municipal heat planning, part of the EU’s revised Energy Efficiency Directive, will drive an uptake of heat pumps in the coming years.
Poland was Europe’s fastest-growing market for heat pumps in 2022, with a 120% increase in sales in a single year. The 46% contraction of heat pump sales in 2023 was largely driven by a 40% drop in the single-family home boiler market, with total sales of fossil fuel heating systems falling in turn. As a result, heat pumps maintained their market share in 2023.
However, the unfavourable price ratio in Poland, typically more than three times as expensive for electricity as for gas, remains a key challenge. The recently elected government is considering policy reform options to address this, however.
Italy’s steep market decline, especially for air-to-water heat pumps, which fell by more than 50%, moves the country in the wrong direction for decarbonising its heating sector. The country’s 2023 heat pump sales were even lower than in 2021.
Key reasons for this include changes to the Superbonus energy efficiency support program, which lowered its reimbursement rate from 110% to 90% and a tightening of eligibility for the scheme.
The heat pump market in the Netherlands was one of Europe’s fastest growing in 2023.
While there was a decline in sales in the country during the last quarter of 2023, due to supply chain constraints, the long-term outlook is for further growth. The market is expected to remain at similar levels throughout 2024.
However, regulation expected to come into effect in 2026 that would have phased out installations of stand-alone fossil fuel heating systems is now expected to be scrapped. The new Dutch right-wing coalition government announced a u-turn on the policy along with a raft of other climate measures in May.
In the UK, the heat pump market expanded slightly in 2023 compared to 2022. With around 60,000 units installed, however, it is well off the government’s target of 600,000 installations per year by 2028.
In October, heat pump grants under the boiler upgrade scheme were increased from £5,000 to £7,500.
The government also recently confirmed that, from 2025, new homes will no longer be allowed to install fossil fuel heating systems or so-called “hydrogen-ready” boilers. This will result in a substantial market boost of more than 150,000 additional units per year, RAP analysis suggests, assuming most new homes will include heat pumps.
However, there is continued uncertainty around the clean heat market mechanism, the main instrument expected to drive heat pump installations in existing buildings.
A one-year postponement of the scheme – which will set a rising standard for heat pumps as a proportion of fossil fuel boiler sales – was recently announced following pressure from the gas boiler industry.
At EU level, previously strong indications of support have begun fading. The European Commission has delayed its heat pump action plan, which would have continued to lay the groundwork for the rapid expansion of the technology across the EU.
More than 60 chief executive officers across the heat pump industry criticised the decision, warning that it risked billions of euros in investments.
At the same time, the European Parliament and the European Council recently passed the revised Energy Performance in Buildings Directive, which will prohibit subsidies for standalone fossil fuel boilers after 2025 and aims for a full phaseout of fossil fuel boilers by 2040.
Consistent policy remains key
Heat pumps are the “central technology” for low-carbon heat and rapid growth in their market share is crucial for meeting national and international climate goals.
After expanding rapidly in 2021 and 2022, the plateau in the European heat pump market in 2023 highlights the impact of inconsistent policies in denting their long-term growth.
The variance in market performance across countries – stemming from a mix of policy shifts, funding cuts and regulatory changes – underscores the complexity of scaling heat pump technologies rapidly enough to meet Europe’s decarbonisation goals.
Nonetheless, far more heat pumps are being installed than in previous years and heat pumps are continuing to gain market share in Europe’s largest heating markets.
RAP analysis shows that consistent and forward-thinking policy packages are likely to be key to boosting this trend. Such interventions could lower the upfront cost of heat pumps and ensure their running cost competitiveness, as well as providing the industry with the market certainty necessary to spur investment, innovation and consumer confidence.
The post Guest post: Heat pumps gained European market share in 2023 despite falling sales appeared first on Carbon Brief.
Guest post: Heat pumps gained European market share in 2023 despite falling sales
Climate Change
Factcheck: Trump’s climate report includes more than 100 false or misleading claims
A “critical assessment” report commissioned by the Trump administration to justify a rollback of US climate regulations contains at least 100 false or misleading statements, according to a Carbon Brief factcheck involving dozens of leading climate scientists.
The report – “A critical review of impacts of greenhouse gas emissions on the US climate” – was published by the US Department of Energy (DoE) on 23 July, just days before the government laid out plans to revoke a scientific finding used as the legal basis for emissions regulation.
The executive summary of the controversial report inaccurately claims that “CO2-induced warming might be less damaging economically than commonly believed”.
It also states misleadingly that “excessively aggressive [emissions] mitigation policies could prove more detrimental than beneficial”.
Compiled in just two months by five “independent” researchers hand-selected by the climate-sceptic US secretary of energy Chris Wright, the document has sparked fierce criticism from climate scientists, who have pointed to factual errors, misrepresentation of research, messy citations and the cherry-picking of data.
Experts have also noted the authors’ track record of promoting views at odds with the mainstream understanding of climate science.
Wright’s department claims the report – which is currently open to public comment as part of a 30-day review – underwent an “internal peer-review period amongst [the] DoE’s scientific research community”.
The report is designed to provide a scientific underpinning to one flank of the Trump administration’s plans to rescind a finding that serves as the legal prerequisite for federal emissions regulation. (The second flank is about legal authority to regulate emissions.)
The “endangerment finding” – enacted by the Obama administration in 2009 – states that six greenhouse gases are contributing to the net-negative impacts of climate change and, thus, put the public in danger.
In a press release on 29 July, the US Environmental Protection Agency said “updated studies and information” set out in the new report would “challenge the assumptions” of the 2009 finding.
Carbon Brief asked a wide range of climate scientists, including those cited in the “critical review” itself, to factcheck the report’s various claims and statements.
The post Factcheck: Trump’s climate report includes more than 100 false or misleading claims appeared first on Carbon Brief.
https://www.carbonbrief.org/factcheck-trumps-climate-report-includes-more-than-100-false-or-misleading-claims/
Climate Change
Cropped 13 August 2025: Fossil-fuelled bird decline; ‘Deadly’ wildfires; Empty nature fund
We handpick and explain the most important stories at the intersection of climate, land, food and nature over the past fortnight.
This is an online version of Carbon Brief’s fortnightly Cropped email newsletter. Subscribe for free here.
Key developments
‘Deadly’ wildfires
WINE BRAKE: France experienced its “largest wildfire in decades”, which scorched more than 16,000 hectares in the country’s southern Aude region, the Associated Press said. “Gusting winds” fanned the flames, Reuters reported, but local winemakers and mayors also “blam[ed] the loss of vineyards”, which can act as a “natural, moisture-filled brake against wildfires”, for the fire’s rapid spread. It added that thousands of hectares of vineyards were removed in Aude over the past year. Meanwhile, thousands of people were evacuated from “deadly” wildfires in Spain, the Guardian said, with blazes ongoing in other parts of Europe.
MAJOR FIRES: Canada is experiencing its second-worst wildfire season on record, CBC News reported. More than 7.3m hectares burned in 2025, “more than double the 10-year average for this time of year”, the broadcaster said. The past three fire seasons were “among the 10 worst on record”, CBC News added. Dr Mike Flannigan from Thompson Rivers University told the Guardian: “This is our new reality…The warmer it gets, the more fires we see.” Elsewhere, the UK is experiencing a record year for wildfires, with more than 40,000 hectares of land burned so far in 2025, according to Carbon Brief.
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WESTERN US: The US state of Colorado has recorded one of its largest wildfires in history in recent days, the Guardian said. The fire “charred” more than 43,300 hectares of land and led to the temporary evacuation of 179 inmates from a prison, the newspaper said. In California, a fire broke out “during a heatwave” and burned more than 2,000 hectares before it was contained, the Los Angeles Times reported. BBC News noted: “Wildfires have become more frequent in California, with experts citing climate change as a key factor. Hotter, drier conditions have made fire seasons longer and more destructive.”
FIRE FUNDING: “Worsening fires” in the Brazilian Amazon threaten new rainforest funding proposals due to be announced at the COP30 climate summit later this year, experts told Climate Home News. The new initiatives include the Tropical Forests Forever Facility, which the outlet said “aims to generate a flow of international investment to pay countries annually in proportion to their preserved tropical forests”. The outlet added: “If fires in the Amazon continue to worsen in the years to come, eligibility for funding could be jeopardised, Brazil’s environment ministry acknowledged.”
Farming impacts
OUT OF ORBIT: US president Donald Trump moved to “shut down” two space missions which monitor carbon dioxide and plant health, the Associated Press reported. Ending these NASA missions would “potentially shu[t] off an important source of data for scientists, policymakers and farmers”, the outlet said. Dr David Crisp, a retired NASA scientist, said the missions can detect the “glow” of plant growth, which the outlet noted “helps monitor drought and predict food shortages that can lead to civil unrest and famine”.
FARM EXTREMES: Elsewhere, Reuters said that some farmers are considering “abandoning” a “drought-hit” agricultural area in Hungary as “climate change cuts crop yields and reduces groundwater levels”. Scientists warned that rising temperatures and low rainfall threaten the region’s “agricultural viability”, the newswire added. Meanwhile, the Premium Times in Nigeria said that some farmers are “harvest[ing] crops prematurely” due to flooding fears. A community in the south-eastern state of Imo “has endured recurrent floods, which wash away crops and incomes alike” over the past decade, the newspaper noted.
SECURITY RISKS: Food supply chains in the UK face “escalating threats from climate impacts and the migration they are triggering”, according to a report covered by Business Green. The outlet said that £3bn worth of UK food imports originated from the 20 countries “with the highest numbers of climate-driven displacements” in 2024, based on analysis from the Energy and Climate Intelligence Unit. The analysis highlighted that “climate impacts on food imports pose a threat to UK food security”. Elsewhere, an opinion piece in Dialogue Earth explored how the “role of gender equity in food security remains critically unaddressed”.
Spotlight
Fossil-fuelled bird decline
This week, Carbon Brief covers a new study tracing the impact of fossil-fuelled climate change on tropical birds.
Over the past few years, biologists have recorded sharp declines in bird numbers across tropical rainforests – even in areas untouched by humans – with the cause remaining a mystery.
A new study published this week in Nature Ecology and Evolution could help to shed light on this alarming phenomenon.
The research combined ecological and climate attribution techniques for the first time to trace the fingerprint of fossil-fuelled climate change on declining bird populations.
It found that an increase in heat extremes driven by climate change has caused tropical bird populations to decline by 25-38% in the period 1950-2020, when compared to a world without warming.
In their paper, the authors noted that birds in the tropics could be living close to their “thermal limits”.
Study lead author Dr Maximilian Kotz, a climate scientist at the Barcelona Supercomputing Center in Spain, explained to Carbon Brief:
“High temperature extremes can induce direct mortality in bird populations due to hyperthermia and dehydration. Even when they don’t [kill birds immediately], there’s evidence that this can then affect body condition which, in turn, affects breeding behaviour and success.”
Conservation implications
The findings have “potential ramifications” for commonly proposed conservation strategies, such as increasing the amount of land in the tropics that is protected for nature, the authors said. In their paper, they continued:
“While we do not disagree that these strategies are necessary for abating tropical habitat loss…our research shows there is now an additional urgent need to investigate strategies that can allow for the persistence of tropical species that are vulnerable to heat extremes.”
In some parts of the world, scientists and conservationists are looking into how to protect wildlife from more intense and frequent climate extremes, Kotz said.
He referenced one project in Australia which is working to protect threatened wildlife following periods of extreme heat, drought and bushfires.
Prof Alex Pigot, a biodiversity scientist at University College London (UCL), who was not involved in the research, said the findings reinforced the need to systematically monitor the impact of extreme weather on wildlife. He told Carbon Brief:
“We urgently need to develop early warning systems to be able to anticipate in advance where and when extreme heatwaves and droughts are likely to impact populations – and also rapidly scale up our monitoring of species and ecosystems so that we can reliably detect these effects.”
There is further coverage of this research on Carbon Brief’s website.
News and views
EMPTY CALI FUND: A major voluntary fund for biodiversity remains empty more than five months after its launch, Carbon Brief revealed. The Cali Fund, agreed at the COP16 biodiversity negotiations last year, was set up for companies who rely on nature’s resources to share some of their earnings with the countries where many of these resources originate. Big pharmaceutical companies did not take up on opportunities to commit to contributing to the fund or be involved in its launch in February 2025, emails released to Carbon Brief showed. Just one US biotechnology firm has pledged to contribute to the fund in the future.
LOSING HOPE: Western Australia’s Ningaloo reef – long considered a “hope spot” among the country’s coral reefs for evading major bleaching events – is facing its “worst-ever coral bleaching”, Australia’s ABC News reported. The ocean around Ningaloo has been “abnormally” warm since December, resulting in “unprecedented” bleaching and mortality, a research scientist told the outlet. According to marine ecologist Dr Damian Thomson, “up to 50% of the examined coral was dead in May”, the Sydney Morning Herald said. Thomson told the newspaper: “You realise your children are probably never going to see Ningaloo the way you saw it.”
‘DEVASTATION BILL’: Brazil’s president, Luiz Inácio Lula da Silva, signed a “contentious” environmental bill into law, but “partially vetoed” some of the widely criticised elements, the Financial Times reported. Critics, who dubbed it the “devastation bill”, said it “risked fuelling deforestation and would harm Brazil’s ecological credentials” just months before hosting the COP30 climate summit. The newspaper said: “The leftist leader struck down or altered 63 of 400 provisions in the legislation, which was designed to speed up and modernise environmental licensing for new business and infrastructure developments.” The vetoes need to be approved by congress, “where Lula lacks a majority”, the newspaper noted.
RAINFOREST DRILLING: The EU has advised the Democratic Republic of the Congo (DRC) against allowing oil drilling in a vast stretch of rainforest and peatland that was jointly designated a “green corridor” earlier this year, Climate Home News reported. In May, the DRC announced that it planned to open the conservation area for drilling, the publication said. A spokesperson for the European Commission told Climate Home News that the bloc “fully acknowledges and respects the DRC’s sovereign right to utilise its diverse resources for economic development”, but that it “highlights the fact that green alternatives have facilitated the protection of certain areas”.
NEW PLAN FOR WETLANDS: During the 15th meeting of the Ramsar Convention on Wetlands, held in Zimbabwe from 23 to 31 July, countries agreed on the adoption of a new 10-year strategic plan for conserving and sustainably using the world’s wetlands. Down to Earth reported that 13 resolutions were adopted, including “enhancing monitoring and reporting, capacity building and mobilisation of resources”. During the talks, Zimbabwe’s environment minister announced plans to restore 250,000 hectares of degraded wetlands by 2030 and Saudi Arabia entered the Convention on Wetlands. Panamá will host the next COP on wetlands in July 2028.
MEAT MADNESS: DeSmog covered the details of a 2021 public relations document that revealed how the meat industry is trying to “make beef seem climate-friendly”. The industry “may have enlisted environmental groups to persuade people to ‘feel better’ about eating beef”, the outlet said, based on this document. The strategy was created by a communications agency, MHP Group, and addressed to the Global Roundtable for Sustainable Beef. One of the key messages of the plan was to communicate the “growing momentum in the beef industry to protect and nurture the Earth’s natural resources”. MHP Group did not respond to a request for comment, according to DeSmog.
Watch, read, listen
MAKING WAVES: A livestream of deep-sea “crustaceans, sponges and sea cucumbers” has “captivated” people in Argentina, the New York Times outlined.
BAFFLING BIRDS: The Times explored the backstory to the tens of thousands of “exotic-looking” parakeets found in parks across Britain.
PLANT-BASED POWER: In the Conversation, Prof Paul Behrens outlined how switching to a plant-based diet could help the UK meet its climate and health targets.
MARINE DISCRIMINATION: Nature spoke to a US-based graduate student who co-founded Minorities in Shark Science about her experiences of racism and sexism in the research field.
New science
- Applying biochar – a type of charcoal – to soils each year over a long period of time can have “sustained benefits for crop yield and greenhouse gas mitigation”, according to a Proceedings of the National Academy of Sciences study.
- New research, published in PLOS Climate, found that nearly one-third of highly migratory fish species in the US waters of the Atlantic Ocean have “high” or “very high” vulnerability to climate change, but the majority of species have “some level of resilience and adaptability”.
- A study in Communications Earth & Environment found a “notable greening trend” in China’s wetlands over 2000-23, with an increasing amount of carbon being stored in the plants growing there.
In the diary
- 18-29 August: Second meeting of the preparatory commission for the Agreement on Marine Biological Diversity of Areas beyond National Jurisdiction | New York
- 24-28 August: World Water Week | Online and Stockholm, Sweden
- 26-29 August: Sixth forum of ministers and environment authorities of Asia Pacific | Nadi, Fiji
Cropped is researched and written by Dr Giuliana Viglione, Aruna Chandrasekhar, Daisy Dunne, Orla Dwyer and Yanine Quiroz. Please send tips and feedback to cropped@carbonbrief.org
The post Cropped 13 August 2025: Fossil-fuelled bird decline; ‘Deadly’ wildfires; Empty nature fund appeared first on Carbon Brief.
Cropped 13 August 2025: Fossil-fuelled bird decline; ‘Deadly’ wildfires; Empty nature fund
Climate Change
Guest post: Why China is still building new coal – and when it might stop
Last year, China started construction on an estimated 95 gigawatts (GW) of new coal power capacity, enough to power the entire UK twice over.
It accounted for 93% of new global coal-power construction in 2024.
The boom appears to contradict China’s climate commitments and its pledge to “strictly control” new coal power.
The fact that China already has significant underused coal power capacity and is adding enough clean energy to cover rising electricity demand also calls the necessity of the buildout into question.
Furthermore, so much new coal capacity provides an easy counterargument for claims that China is serious about the energy transition.
Did China really need more coal power?
And now that it is here, do all these brand-new power plants mean China’s greenhouse gas emissions will remain elevated for longer?
This article addresses four common talking points surrounding China’s ongoing coal-power expansion, explaining how and why the current wave of new projects might come to an end.
New coal is not needed for energy security
The explanation for China’s recent coal boom lies in a combination of policy priorities, institutional incentives and system-level mismatches, with origins in the widespread power shortages China experienced in the early 2020s.
In 2021, a “mismatch” between the price of coal and the government-set price of coal-fired power incentivised coal-fired power plants to cut generation. Furthermore, power shortages in 2020 and 2022 revealed issues of inflexible grid management and limited availability of power plants, when demand spiked due to extreme weather and elevated energy-intensive economic activity, compounded by coal shortages, reduced hydro output and insufficient imported electricity import.
Following this, energy security became a top priority for the central government. Local governments responded by approving new coal-power projects as a form of insurance against future outages.
Yet, on paper, China had – and still has – more than enough “dispatchable” resources to meet even the highest demand peaks. (Dispatchable sources include coal, gas, nuclear and hydropower.) It also has more than enough underutilised coal-power capacity to meet potential demand growth.
A bigger factor behind the shortages was grid inflexibility. During both the 2020 power crisis in north-east China and the 2022 shortage in Sichuan, affected provinces continued to export electricity while experiencing local shortages.
A lack of coordination between provinces and inflexible market mechanisms governing the “dispatch” of power plants – the instructions to adjust generation up or down – meant that existing resources could not be fully utilised.
Nevertheless, with coal power plants cheap to build and quick to gain approval, many provinces saw them as a reliable way to reassure policymakers, balance local grids and support industry interests, regardless of whether the plants would end up being economically viable or frequently used.
China’s average utilisation rate of coal power plants in 2024 was around 50%, meaning total coal-fired electricity generation could rise substantially without the need for any new capacity.
At the same time as adding new coal, the Chinese government also addressed energy security through improvements to grid operation and market reforms, as well as building more storage.
The country added dozens of gigawatts of battery storage, accelerated pumped hydro projects and improved trading linkages between electricity markets in different provinces.
Though these investments could have gone further, they have already helped avoid blackouts during recent summers – when few of the newly-permitted coal power plants had come online. As such, it is not clear that the new coal plants were needed to guarantee security of supply in the first place.
President Xi Jinping has stated that “energy security depends on developing new energy” – using the Chinese term for renewables excluding hydropower and sometimes including nuclear. According to the International Energy Agency, in the long run, resilience will come not from overbuilding coal, but from modernising China’s power system.
New coal power plants do not mean more coal use and higher emissions
It may seem intuitive to imagine that if a country is building new coal power plants, it will automatically burn more coal and increase its emissions.
But adding capacity does not necessarily translate into higher generation or emissions, particularly while the growth of clean energy is still accelerating.
Coal power generation plays a residual role in China’s power system, filling the gap between the power generated from clean energy sources – such as wind, solar, hydro and nuclear – and total electricity demand. As clean-energy generation is growing rapidly, the space left for coal to fill is shrinking.
From December 2024, coal power generation declined for five straight months before ticking up slightly in May and June, mainly to offset weaker hydropower generation due to drought. Coal power generation was flat overall in the second quarter of 2025.
The chart below shows growth in monthly power generation for coal and gas (grey), solar and wind (dark blue) and other low-carbon power sources (light blue).
This illustrates how the rise in wind and solar growth is squeezing the residual demand left for coal power, resulting in declining coal-power output during much of 2025 to date.

Another way to consider the impact of new coal-fired capacity is to test whether, in reality, it automatically leads to a rise in coal-fired electricity generation.
The top panel in the figure below shows the annual increase in coal power capacity on the horizontal axis, relative to the change in coal-power output on the vertical axis.
For example, in 2023, China added 47GW of new coal capacity and coal power output rose by 3.4TWh. In contrast, only 28GW was added in 2021, yet output still rose by 4.4TWh.
In other words, there is no correlation between the amount of new coal capacity and the change in electricity generation from coal, or the associated emissions, on an annual basis.
Indeed, the lower panel in the figure shows that larger additions of coal capacity are often followed by falling utilisation. This means that adding coal plants tends to mean that the coal fleet overall is simply used less often.

As such, while adding new coal plants might complicate the energy transition and may increase the risk of unnecessary greenhouse gas emissions, an increase in coal use is far from guaranteed.
If instead, clean energy is covering all new demand – as it has been recently – then building new coal plants simply means that the coal fleet will be increasingly underutilised, which poses a threat to plant profitability.
China is not unique in its approach to coal power
The dynamics behind last year’s surge in coal power project construction starts speak to the logic of China’s system, in which cost-efficiency is not always a central concern when ensuring that key problems are solved.
If a combination of three tools – coal power plants, storage and grid flexibility, in this case – can solve a problem more reliably than one alone, then China is likely to deploy all three, even at the risk of overcapacity.
This approach reflects not just a desire for reliability, but also deeper institutional dynamics that help to explain why coal power continues to be built.
But that does not mean that such a pattern is unique to China.
The figure below shows that, across 26 regions, a peak in coal-fired electricity generation (blue lines) almost always comes before coal power capacity (red) starts to decline.
Moreover, the data suggests that once there has been a peak, generation falls much more sharply than capacity, implying that remaining coal plants are kept on the system even as they are used increasingly infrequently.

In most cases, what ultimately stopped new coal power projects in those countries was not a formal ban, but the market reality that they were no longer needed once lower-carbon technologies and efficiency gains began to cover demand growth.
Coal phase-out policies have tended to reinforce these shifts, rather than initiating them. In China, the same market signals are emerging: clean energy is now meeting all incremental demand and coal power generation has, as a result, started to decline.
Coal is not yet playing a flexible ‘supporting’ role
Since 2022, China’s energy policy has stated that new coal-power projects should serve a “supporting” or “regulating” role, helping integrate variable renewables and respond to demand fluctuations, rather than operating as always-on “baseload” generators.
More broadly, China’s energy strategy also calls for coal power to gradually shift away from a dominant baseload role toward a more flexible, supporting function.
These shifts have, however, mostly happened on paper. Coal power overall remains dominant in China’s power mix and largely inflexible in how it is dispatched.
The 2022 policy provided local governments with a new rationale for building coal power, but many of the new plants are still designed and operated as inflexible baseload units. Long-term contracts and guaranteed operating hours often support these plants to run frequently, undermining the idea that they are just backups.
Old coal plants also continue to operate under traditional baseload assumptions. Despite policies promoting retrofits to improve flexibility, coal power remains structurally rigid.
Technical limitations, long-term contracts and economic incentives continue to prevent meaningful change. Coal is unlikely to shift into the flexible supporting role that China says it wants without deeper reform to dispatch rules, pricing mechanisms and contract structures.
Despite all this, China is seeing a clear shift away from coal. Clean-energy installations have surged, while power demand growth has moderated.
As a result, coal power’s share in the electricity mix has steadily declined, dropping from around 73% in 2016 to 51% in June 2025. The chart below shows the monthly power generation share of coal (dark grey), gas (light grey), solar and wind (dark blue), and other low-carbon sources (light blue) from 2016 to the present.

When will the coal boom end?
About a decade ago, the end of China’s coal power expansion also looked near. Coal power plant utilisation declined sharply in the mid-2010s as overcapacity worsened. In response, the government began restricting new project approvals in 2016.
With new construction slowing and power demand rebounding, especially during and after the height of the Covid-19 pandemic, utilisation rates recovered. Not long after, power shortages kicked off the recent coal building spree.
Now, there are new signs that the coal power boom is approaching its end. Permitting is becoming more selective again in some regions, especially in eastern provinces where demand growth is slowing and clean energy is surging. Meanwhile, system flexibility is advancing.
Compared to the late 2010s, the current shift appears more structural. It is driven by the rapid expansion of clean energy, which increasingly eliminates the need for large-scale new coal power projects.
Still, the pace of change will depend on how quickly institutions adapt. If grid operators become confident that peak loads can reliably be met with renewables and flexible backup, the rationale for new coal power plants will weaken.
Equally important, entrenched interests at the provincial and corporate levels continue to push for new plants, not just as insurance, but as sources of investment, employment and revenue. Through long-term contracts and utilisation guarantees, this represents institutional lock-in that may delay the shift away from coal.
The next major turning point will come when coal power utilisation rates begin to fall more sharply and persistently. With large amounts of capacity set to come online in the next two years and clean energy steadily displacing coal in the power mix, a sharp drop in coal power plant utilisation appears likely.
Once this happens, the central government might be expected to step in through administrative capacity cuts – forcing the oldest plants to retire – just as it did during overcapacity campaigns in the steel, cement and coal sectors around 2016 and 2017.
In that sense, China’s coal power phase-out may not begin with a single grand policy declaration, but with a familiar pattern of centralised control and managed retrenchment.
A key question is how quickly institutional incentives and grid operation will catch up with the dawning reality of coal being squeezed by renewable growth, as well as whether they will allow clean energy to lead, or continue to be held back by the legacy of coal.
The upcoming 15th five-year plan presents a crucial test of government priorities in this area. If it wants to bring policy back in line with its long-term climate and energy goals, then it could consider including clear, measurable targets for phasing down coal consumption and limiting new capacity, for example.
While China’s coal power construction boom looks, at first glance, like a resurgence,it currently appears more likely to be the final surge before a long downturn. The expansion has added friction and complexity to China’s energy transition, but it has not reversed it.
The post Guest post: Why China is still building new coal – and when it might stop appeared first on Carbon Brief.
Guest post: Why China is still building new coal – and when it might stop
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