China’s central and local governments, as well as state-owned enterprises, are busy preparing for the next five-year planning period, spanning 2026-30.
The top-level 15th five-year plan, due to be published in March 2026, will shape greenhouse gas emissions in China – and globally – for the rest of this decade and beyond.
The targets set under the plan will determine whether China is able to get back on track for its 2030 climate commitments, which were made personally by President Xi Jinping in 2021.
This would require energy sector carbon dioxide (CO2) emissions to fall by 2-6% by 2030, much more than implied by the 2035 target of a 7-10% cut from “peak levels”.
The next five-year plan will set the timing and the level of this emissions peak, as well as whether emissions will be allowed to rebound in the short term.
The plan will also affect the pace of clean-energy growth, which has repeatedly beaten previous targets and has become a key driver of the nation’s economy.
Some 250-350 gigawatts (GW) of new wind and solar would be needed each year to meet China’s 2030 commitments, far above the 200GW being targeted.
Finally, the plans will shape China’s transition away from fossil fuels, with key sectors now openly discussing peak years for coal and oil demand, but with 330GW of new coal capacity in the works and more than 500 new chemical industry projects due in the next five years.
These issues come together in five key questions for climate and energy that Chinese policymakers will need to answer in the final five-year plan documents next year.
Five-year plans and their role in China
1. Will the plan put China back on track for its 2030 Paris pledge?
2. Will the plan upgrade clean-energy targets or pave the way to exceed them?
3. Will the plan set an absolute cap on coal consumption?
4. Will ‘dual control’ of carbon prevent an emission rebound?
5. Will it limit coal-power and chemical-industry growth?
Five-year plans and their role in China
Five-year plans are an essential part of China’s policymaking, guiding decision-making at government bodies, enterprises and banks. The upcoming 15th five-year plan will cover the years 2026-30, set targets for 2030 and use 2025 as its base year.
The top-level five-year plan will be published in March 2026 and is known as the five-year plan on economic and social development. This overarching document will be followed by dozens of sectoral plans, as well as province- and company-level plans.
The sectoral plans are usually published in the second year of the five-year period, meaning they would be expected in 2027.
There will be five-year plans for the energy sector, the electricity sector, for renewable energy, nuclear, coal and many other sub-sectors, as well as plans for major industrial sectors such as steel, construction materials and chemicals.
It is likely that there will also be a plan for carbon emissions or carbon peaking and a five-year plan for the environment.
During the previous five-year period, the plans of provinces and state-owned enterprises for very large-scale solar and wind projects were particularly important, far exceeding the central government’s targets.
The five-year plans create incentives for provincial governments and ministries by setting quantified targets that they are responsible for meeting. These targets influence the performance evaluations of governors, CEOs and party secretaries.
The plans also designate favoured sectors and projects, directing bank lending, easing permitting and providing an implicit government guarantee for the project developers.
Each plan lists numerous things that should be “promoted”, banned or controlled, leaving the precise implementation to different state organs and state-owned enterprises.
Five-year plans can introduce and coordinate national mega-projects, such as the gigantic clean-energy “bases” and associated electricity transmission infrastructure, which were outlined in the previous five-year plan in 2021.
The plans also function as a policy roadmap, assigning the tasks to develop new policies and providing stakeholders with visibility to expected policy developments.
1. Will the plan put China back on track for its 2030 Paris pledge?
Reducing carbon intensity – the energy-sector carbon dioxide (CO2) emissions per unit of GDP – has been the cornerstone of China’s climate commitments since the 2020 target announced at the 2009 Copenhagen climate conference.
Consequently, the last three five-year plans have included a carbon-intensity target. The next 15th one is highly likely to set a carbon-intensity target too, given that this is the centerpiece of China’s 2030 climate targets.
Moreover, it was president Xi himself who pledged in 2021 that China would reduce its carbon intensity to 65% below 2005 levels by 2030. This was later formalised in China’s 2030 “nationally determined contribution” (NDC) under the Paris Agreement.
Xi also pledged that China would gradually reduce coal consumption during the five-year period up to 2030. However, China is significantly off track to these targets.
China’s CO2 emissions grew more quickly in the early 2020s than they had been before the Coronavirus pandemic, as shown in the figure below. This stems from a surge in energy consumption during and after the “zero-Covid” period, together with a rapid expansion of coal-fired power and the fossil-fuel based chemical industry. as shown in the figure below.
As a result, meeting the 2030 intensity target would require a reduction in CO2 emissions from current levels, with the level of the drop depending on the rate of economic growth.
Xi’s personal imprimatur would make missing these 2030 targets awkward for China, particularly given the country’s carefully cultivated reputation for delivery. On the other hand, meeting them would require much stronger action than initially anticipated.
Recent policy documents and statements, in particular the recommendations of the Central Committee of the Communist Party for the next five-year plan, and the government’s work report for 2025, have put the emphasis on China’s target to peak emissions before 2030 and the new 2035 emission target, which would still allow emissions to increase over the next five-year period. The earlier 2030 commitments risk being buried as inconvenient.
Still, the State Council’s plan for controlling carbon emissions, published in 2024, says that carbon intensity will be a “binding indicator” for the next five-year period, meaning that a target will be included in the top-level plan published in March 2026.
China is only set to achieve a reduction of about 12% in carbon intensity from 2020 to 2025 – a marked slowdown relative to previous periods, as shown in the figure below.
(This is based on reductions reported annually by the National Bureau of Statistics until 2024 and a projected small increase in energy-sector CO2 emissions in 2025. Total CO2 emissions could still fall this year, when the fall in process emissions from cement production is factored in.)
A 12% fall would be far less than the 18% reduction targeted under the 14th five-year plan, as well as falling short of what would be needed to stay on track to the 2030 target.
To make up the shortfall and meet the 2030 intensity target, China would need to set a goal of around 23% in the next five-year plan. As such, this target will be a key test of China’s determination to honour its climate commitments.
A carbon-intensity target of 23% is likely to receive pushback from some policymakers, as it is much higher than achieved in previous periods. No government or thinktank documents have yet been published with estimates of what the 2030 intensity target would need to be.
In practice, meeting the 2030 carbon intensity target would require reducing CO2 emissions by 2-6% in absolute terms from 2025, assuming a GDP growth rate of 4.2-5.0%.
China needs 4.2% GDP growth over the next decade to achieve Xi’s target of doubling the country’s GDP per capita from 2020 to 2035, a key part of his vision of achieving “socialist modernisation” by 2035, with the target for the next five years likely to be set higher.
Recent high-level policy documents have avoided even mentioning the 2030 intensity target. It is omitted in recommendations of the Central Committee of the Communist Party for the next five-year plan, the foundation on which the plan will be formulated.
Instead, the recommendations emphasised “achieving the carbon peak as scheduled” and “promoting the peaking of coal and oil consumption”, which are less demanding.
The environment ministry, in contrast, continues to pledge efforts to meet the carbon intensity target. However, they are not the ones writing the top-level five-year plan.
The failure to meet the 2025 intensity target has been scarcely mentioned in top-level policy discussions. There was no discernible effort to close the gap to the target, even after the midway review of the five-year plan recognised the shortfall.
The State Council published an action plan to get back on track, including a target for reducing carbon intensity in 2024 – albeit one not sufficient to close the shortfall. Yet this plan, in turn, was not followed up with an annual target for 2025.
The government could also devise ways to narrow the gap to the target on paper, through statistical revisions or tweaks to the definition of carbon intensity, as the term has not been defined in China’s NDCs.
Notably, unlike China’s previous NDC, its latest pledge did not include a progress update for carbon intensity. The latest official update sent to the UN only covers the years to 2020.
This leaves some more leeway for revisions, even though China’s domestic “statistical communiques”, published every year, have included official numbers up to 2024.
Coal consumption growth around 2022 was likely over-reported, so statistical revisions could reduce reported emissions and narrow the gap to the target. Including process emissions from cement, which have been falling rapidly in recent years, and changing how emissions from fossil fuels used as raw materials in the chemicals industry are accounted for, so-called non-energy use, which has been growing rapidly, could make the target easier to meet.
2. Will the plan upgrade clean-energy targets or pave the way to exceed them?
The need to accelerate carbon-intensity reductions also has implications for clean-energy targets.
The current goal is for non-fossil fuels to make up 25% of energy supplies in 2030, up from the 21% expected to be reached this year.
This expansion would be sufficient to achieve the reduction in carbon intensity needed in the next five years, but only if energy consumption growth slows down very sharply. Growth would need to slow to around 1% per year, from 4.1% in the past five years 2019-2024 and from 3.7% in the first three quarters of 2025.
The emphasis on manufacturing in the Central Committee’s recommendations for the next five-year plan is hard to reconcile with such a sharp slowdown, even if electrification will help reduce primary energy demand. During the current five-year period, China abolished the system of controlling total energy consumption and energy intensity, removing the incentive for local governments to curtail energy-intensive projects and industries.
Even if the ratio of total energy demand growth to GDP growth returned to pre-Covid levels, implying total energy demand growth of 2.5% per year, then the share of non-fossil energy would need to reach 31% by 2030 to deliver the required reduction in carbon intensity.
However, China recently set the target for non-fossil energy in 2035 at just 30%. This risks cementing a level of ambition that is likely too low to enable the 2030 carbon-intensity target to be met, whereas meeting it would require non-fossil energy to reach 30% by 2030.
There is ample scope for China to beat its targets for non-fossil energy.
However, given that the construction of new nuclear and hydropower plants generally takes five years or more in China, only those that are already underway have the chance to be completed by 2030. This leaves wind and solar as the quick-to-deploy power generation options that can deliver more non-fossil energy during this five-year period.
Reaching a much higher share of non-fossil energy in 2030, in turn, would therefore require much faster growth in solar and wind than currently targeted. Both the NDRC power-sector plan for 2025-27 and China’s new NDC aim for the addition of about 200 gigawatts (GW) per year of solar and wind capacity, much lower than the 360GW achieved in 2024.
If China continued to add capacity at similar rates, going beyond the government’s targets and instead installing 250-350GW of new solar and wind in each of the next five years, then this would be sufficient to meet the 2030 intensity target, assuming energy demand rising by 2.5-3.0% per year.
All previous wind and solar targets have been exceeded by a wide margin, as shown in the figure below, so there is a good chance that the current one will be, too.
While the new pricing policy for wind and solar has created a much more uncertain and less supportive policy environment for the development of clean energy, provinces have substantial power to create a more supportive environment.
For example, they can include clean-energy projects and downstream projects using clean electricity and green hydrogen in their five-year plans, as well as developing their local electricity markets in a direction that enables new solar and wind projects.
3. Will the plan set an absolute cap on coal consumption?
In 2020, Xi pledged that China would “gradually reduce coal consumption” during the 2026-30 period. The commitment is somewhat ambiguous.
It could be interpreted as requiring a reduction starting in 2026, or a reduction below 2025 levels by 2030, which in practice would mean coal consumption peaking around the midway point of the five-year period, in other words 2027-28.
In either case, if Xi’s pledge were to be cemented in the 15th five-year plan then it would need to include an absolute reduction in coal consumption during 2026-30. An illustration of what this might look like is shown in the figure below.
However, the commitment to reduce coal consumption was missing from China’s new NDC for 2035 and from the Central Committee’s recommendations for the next five-year plan.
The Central Committee called for “promoting a peak in coal and oil consumption”, which is a looser goal as it could still allow an increase in consumption during the period, if the growth in the first years towards 2030 exceeds the reduction after the peak.
The difference between “peaking” and “reducing” is even larger because China has not defined what “peaking” means, even though peaking carbon emissions is the central goal of China’s climate policy for this decade.
Peaking could be defined as achieving a certain reduction from peak before the deadline, or having policies in place that constrain emissions or coal use. It could be seen as reaching a plateau or as an absolute reduction.
While the commitment to “gradually reduce” coal consumption has seemed to fade from discussion, there have been several publications discussing the peak years for different fossil fuels, which could pave the way for more specific peaking targets.
State news agency Xinhua published an article – only in English – saying that coal consumption would peak around 2027 and oil consumption around 2026, while also mentioning the pledge to reduce coal consumption.
The energy research arm of the National Development and Reform Council had said earlier that coal and oil consumption would peak halfway through the next five-year period, in other words 2027-28, while the China Coal Association advocated a slightly later target of 2028.
Setting a targeted peak year for coal consumption before the half-way point of the five-year period could be a way to implement the coal reduction commitment.
With the fall in oil use in transportation driven by EVs, railways and other low-carbon transportation, oil consumption is expected to peak soon or to have peaked already.
State-owned oil firm CNPC projects that China’s oil consumption will peak in 2025 at 770m tonnes, while Sinopec thinks that continued demand for petrochemical feedstocks will keep oil consumption growing until 2027 and it will then peak at 790-800m tonnes.
4. Will ‘dual control’ of carbon prevent an emission rebound?
With the focus on realising a peak in emissions before 2030, there could be a strong incentive for provincial governments and industries to increase emissions in the early years of the five-year period to lock in a higher level of baseline emissions.
This approach is known as “storming the peak” (碳冲锋) in Chinese and there have been warnings about it ever since Xi announced the current CO2 peaking target in 2020.
Yet, the emphasis on peaking has only increased, with the recent announcement on promoting peaks in coal consumption and oil consumption, as well as the 2035 emission-reduction target being based on “peak levels”.
The policy answer to this is creating a system to control carbon intensity and total CO2 emissions – known as “dual control of carbon” – building on the earlier system for the “dual control of energy” consumption.
Both the State Council and the Central Committee have set the aim of operationalising the “dual control of carbon” system in the 15th five-year plan period.
However, policy documents speak of building the carbon dual-control system during the five-year period rather than it becoming operational at the start of the period.
For example, an authoritative analysis of the Central Committee’s recommendations by China Daily says that “solid progress” is needed in five areas to actually establish the system, including assessment of carbon targets for local governments as well as carbon management for industries and enterprises.
The government set an annual target for reducing carbon intensity for the first time in 2024, but did not set one for 2025, also signaling that there was no preparedness to begin controlling carbon intensity, let alone total carbon emissions, yet.
If the system is not in place at the start of the five-year period, with firm targets, there could be an opportunity for local governments to push for early increases in emissions – and potentially even an incentive for such emission increases, if they expect strict control later.
Another question is how the “dual” element of controlling both carbon intensity and absolute CO2 emissions is realised. While carbon intensity is meant to be the main focus during the next five years, with the priority shifting to reducing absolute emissions after the peak, having the “dual control” in place requires some kind of absolute cap on CO2 emissions.
The State Council has said that China will begin introducing “absolute emissions caps in some industries for the first time” from 2027 under its national carbon market. It is possible that the control of absolute carbon emissions will only apply to these sectors.
The State Council also said that the market would cover all “major emitting sectors” by 2027, but absolute caps would only apply to sectors where emissions have “stabilised”.
5. Will it limit coal-power and chemical-industry growth?
During the current five-year period, China’s leadership went from pledging to “strictly control” new coal-fired power projects to actively promoting them.
If clean-energy growth continues at the rates achieved in recent years, there will be no more space for coal- and gas-fired power generation to expand, even if new capacity is built. Stable or falling demand for power generation from fossil fuels would mean a sharp decline in the number of hours each plant is able to run, eroding its economic viability.
Showing the scale of the planned expansion, researchers from China Energy Investment Corporation, the second-largest coal-power plant operator in China, project that China’s coal-fired power capacity could expand by 300GW from the end of 2024 to 2030 and then plateau at that level for a decade. The projection relies on continued growth of power generation from coal until 2030 and a very slow decline thereafter.
The completion of the 325GW projects already under construction and permitted at the end of 2024, as well as an additional 42GW permitted in the first three quarters of 2025, could in fact lead to a significantly larger increase, if the retirement of existing capacity remains slow.
In effect, China’s policymakers face a choice between slowing down the clean-energy boom, which has been a major driver of economic growth in recent years, upsetting coal project developers, who expect to operate their coal-fired power plants at a high utilisation, or retiring older coal-power plants en masse.
Their response to these choices may not become clear for some time. The top-level five-year plan that will be published in March 2026 will likely provide general guidelines, but the details of capacity development will be relegated to the sectoral plans for energy.
The other sector where fossil fuel-based capacity is rapidly increasing is the chemical industry, both oil and coal-based. In this sector, capacity growth has led directly to increases in output, making the sector the only major driver of emissions increases after early 2024.
The expansion is bound to continue. There are more than 500 petrochemical projects planned by 2030 in China, of which three quarters are already under construction, according to data provider GlobalData.
As such, the emissions growth in the chemical sector is poised to continue in the next few years, whereas meeting China’s 2030 targets and commitments would require either reining it in and bringing emissions back down before 2030, or achieving emission reductions in other sectors that offset the increases.
The expansion of the coal-to-chemicals industry is largely driven by projects producing gas and liquid fuels from coal, which make up 70% of the capacity under construction and in planning, according to a mapping by Anychem Coalchem.
These projects are a way of reducing reliance on imported oil and gas. In these areas, electrification and clean energy offer another solution that can replace imports.
Conclusions
The five-year plans being prepared now will largely determine the peak year and level of China’s emissions, with a major impact on China’s subsequent emission trajectory and on the global climate effort.
The targets in the plan will also be a key test of the determination of China’s leadership to respect previous commitments, despite setbacks.
The country has cultivated a reputation for reliably implementing its commitments. For example, senior officials have said that China’s policy targets represent a “bottom line”, which the policymakers are “definitely certain” about meeting, while contrasting this with other countries’ loftier approach to target-setting.
Depending on how the key questions outlined in this article are answered in the plans for the next five years, however, there is the possibility of a rebound in emissions.
There are several factors contributing to such a possibility: solar- and wind-power deployment could slow down under the new pricing policy, weak targets and a deluge of new coal- and gas-power capacity coming onto the market.
In addition, unfettered expansion of the chemical industry could drive up emissions. And climate targets that limit emissions only after a peak is reached could create an incentive to increase emissions in the short term, unless counteracted by effective policies.
On the other hand, there is also the possibility of the clean-energy boom continuing so that the sector beats the targets it has been set. Policymakers could also prioritise carbon-intensity reductions early in the period to meet China’s 2030 commitments.
Given the major role that clean-energy industries have played in driving China’s economic growth and meeting GDP targets, local governments have a strong incentive to keep the expansion going, even if the central government plans for a slowdown.
During the current five-year period, provinces and state-owned enterprises have been more ambitious than the central government. Provinces can and already have found ways to support clean-energy development beyond central government targets.
Such an outcome would continue a well-established pattern, given all previous wind and solar targets have been exceeded by a wide margin.
The difference now is that a significant exceedance of clean-energy targets would make a much bigger difference, due to the much larger absolute size of the industry.
To date, China’s approach to peaking emissions and pursuing carbon neutrality has focused on expanding the supply and driving down the cost of clean technology, emphasising economic expansion rather than restrictions on fossil-fuel use and emissions, with curbing overcapacity an afterthought.
This suggests that if China’s 2030 targets are to be met, it is more likely to be through the over-delivery of clean energy than as a result of determined regulatory effort.
The post Q&A: Five key climate questions for China’s next ‘five-year plan’ appeared first on Carbon Brief.
Q&A: Five key climate questions for China’s next ‘five-year plan’
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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.
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.
China Briefing 22 January 2026: 2026 priorities; EV agreement; How China uses gas
Every year, understanding of climate science grows stronger.
With each new research project and published paper, scientists learn more about how the Earth system responds to continuing greenhouse gas emissions.
But with many thousands of new studies on climate change being published every year, it can be hard to keep up with the latest developments.
Our annual “10 new insights in climate science” report offers a snapshot of key advances in the scientific understanding of the climate system.
Produced by a team of scientists from around the world, the report summarises influential, novel and policy-relevant climate research published over the previous 18 months.
The insights presented in the latest edition, published in the journal Global Sustainability, are as follows:
- Questions remain about the record warmth in 2023-24
- Unprecedented ocean surface warming and intensifying marine heatwaves are driving severe ecological losses
- The global land carbon sink is under strain
- Climate change and biodiversity loss amplify each other
- Climate change is accelerating groundwater depletion
- Climate change is driving an increase in dengue fever
- Climate change diminishes labour productivity
- Safe scale-up of carbon dioxide removal is needed
- Carbon credit markets come with serious integrity challenges
- Policy mixes outperform stand-alone measures in advancing emissions reductions
In this article, we unpack some of the key findings.
A strained climate system
The first three insights highlight how strains are growing across the climate system, from indications of an accelerating warming and record-breaking marine heatwaves, to faltering carbon sinks.
Between April 2023 and March 2024, global temperatures reached unprecedented levels – a surge that cannot be fully explained by the long-term warming trend and typical year-to-year fluctuations of the Earth’s climate. This suggests other factors are at play, such as declining sulphur emissions and shifting cloud cover.
(For more, Carbon Brief’s in-depth explainer of the drivers of recent exceptional warmth.)
Ocean heat uptake has climbed as well. This has intensified marine heatwaves, further stressing ecosystems and livelihoods that rely on fisheries and coastal resources.
The exceptional warming of the ocean has driven widespread impacts, including massive coral bleaching, fish and shellfish mortality and disruptions to marine food chains.
The map below illustrates some of the impacts of marine heatwaves from 2023-24, highlighting damage inflicted on coral reefs, fishing stocks and coastal communities.
Land “sinks” that absorb carbon – and buffer the emissions from human activity – are under increasing stress, too. Recent research shows a reduction in carbon stored in boreal forests and permafrost ecosystems.
The weakening carbon sinks means that more human-caused carbon emissions remain in the atmosphere, further driving up global temperatures and increasing the chances that warming will surpass the Paris Agreement’s 1.5C limit.
This links to the fourth insight, which shows how climate change and biodiversity loss can amplify each other by leading to a decrease in the accumulation of biomass and reduced carbon storage, creating a destabilising feedback loop that accelerates warming.
New evidence demonstrates that climate change could threaten more than 3-6 million species and, as a result, could undermine critical ecosystem functions.
For example, recent projections indicate that the loss of plant species could reduce carbon sequestration capacity in the range of 7-145bn tonnes of carbon over the coming decades. Similarly, studies show that, in tropical systems, the extinction of animals could reduce carbon storage capacity by up to 26%.
Human health and livelihoods
Growing pressure on the climate system is having cascading consequences for human societies and natural systems.
Our fifth insight highlights how groundwater supplies are increasingly at risk.
More than half the global population depends on groundwater – the second largest source of freshwater after polar ice – for survival.
But groundwater levels are in decline around the world. A 2025 Nature paper found that rapid groundwater declines, exceeding 50cm each year, have occurred in many regions in the 21st century, especially in arid areas dominated by cropland. The analysis also showed that groundwater losses accelerated over the past four decades in about 30% of regional aquifers.
Changes in rainfall patterns due to climate change, combined with increased irrigation demand for agriculture, are depleting groundwater reserves at alarming rates.
The figure below illustrates how climate-driven reductions in rainfall, combined with increased evapotranspiration, are projected to significantly reduce groundwater recharge in many arid regions – contributing to widespread groundwater-level declines.
These losses threaten food security, amplifying competition for scarce resources and undermining the resilience of entire communities.
Human health and livelihoods are also being affected by changes to the climate.
Our sixth insight spotlights the ongoing and projected expansion of the mosquito-borne disease dengue fever.
Dengue surged to the largest global outbreak on record in 2024, with the World Health Organization reporting 14.2m cases, which is an underestimate because not all cases are counted.
Rising temperatures are creating more favourable conditions for the mosquitoes that carry dengue, driving the disease’s spread and increasing its intensity.
The chart below shows the regions climatically suitable for Aedes albopictus (blue line) and Aedes aegypti (green line) – the primary mosquitoes species that carry the virus – increased by 46.3% and 10.7%, respectively, between 1951-60 and 2014-23.
The maps on the right reveal how dengue could spread by 2030 and 2050 under an emissions scenario broadly consistent with current climate policies. It shows that the climate suitable for the mosquito that spreads dengue could expand northwards in Canada, central Europe and the West Siberian Plain by 2050.
The ongoing proliferation of these mosquito species is particularly alarming given their ability to transmit the zika, chikungunya and yellow fever viruses.
Heat stress is also a growing threat to labour productivity and economic growth, which is the seventh insight in our list.
For example, an additional 1C of warming is projected to expose more than 800 million people in tropical regions to unsafe heat levels – potentially reducing working hours by up to 50%.
At 3C warming, sectors such as agriculture, where workers are outdoors and exposed to the sun, could see reductions in effective labour of 25-33% across Africa and Asia, according to a recent Nature Reviews Earth & Environment paper.
Meanwhile, sectors where workers operate in shaded or indoor settings could also face meaningful losses. This drain on productivity compounds socioeconomic issues and places a strain on households, businesses and governments.
Low-income, low-emitting regions are set to shoulder a greater relative share of the impacts of extreme heat on economic growth, exacerbating existing inequalities.
Action and policy
Our report illustrates not only the scale of the challenges facing humanity, but also some of the pathways toward solutions.
The eighth insight emphasises the critical role of carbon dioxide removal (CDR) in stabilising the climate, especially in “overshoot” scenarios where warming temporarily surpasses 1.5C and is then brought back down.
Scaling these CDR solutions responsibly presents technical, ecological, justice, equity and governance challenges.
Nature-based approaches for pulling carbon out of the air – such as afforestation, peatland rewetting and agroforestry – could have negative consequences for food security, biodiversity conservation and resource provision if deployed at scale.
Yet, research has suggested that substantially more CDR may be needed than estimated in the scenarios used in the Intergovernmental Panel on Climate Change (IPCC’s) last assessment report.
Recent findings showed that a pathway where temperatures remain below 1.5C with no overshoot would require up to 400Gt of cumulative CDR by 2100 in order to buffer against the effect of complex geophysical processes that can accelerate climate change. This figure is roughly twice the amount of CDR assessed by the IPCC.
This underscores the need for robust international coordination on the responsible scaling of CDR technologies, as a complement to ambitious efforts to reduce emissions. Transparent carbon accounting frameworks that include CDR will be required to align national pledges with international goals.
Similarly, voluntary carbon markets – where carbon “offsets” are traded by corporations, individuals and organisations that are under no legal obligation to make emission cuts – face challenges.
Our ninth insight shows how low-quality carbon credits have undermined the credibility of these largely unregulated carbon markets, limiting their effectiveness in supporting emission reductions.
However, emerging standards and integrity initiatives, such as governance and quality benchmarks developed by the Integrity Council for Voluntary Carbon Markets, could address some of the concerns and criticism associated with carbon credit projects.
High-quality carbon credits that are verified and rigorously monitored can complement direct emission reductions.
Finally, our 10th insight highlights how a mix of climate policies typically have greater success than standalone measures.
Research published in Science in 2024 shows how carefully tailored policy packages – including carbon pricing, regulations, and incentives – could consistently achieve larger and more durable emission reductions than isolated interventions.
For example, in the buildings sector, regulations that ban or phase out products or activities achieve an average effect size of 32% when included in a policy package, compared with 13% when implemented on their own.
Importantly, policy mixes that are tailored to the country context and with attention to distributional equity are more likely to gain public support.
These 10 insights in our latest edition highlight the urgent need for an integrated approach to tackling climate change.
The science is clear, the risks are escalating – but the tools to act are available.
The post Guest post: 10 key climate science ‘insights’ from 2025 appeared first on Carbon Brief.
The annual World Economic Forum is underway in the Swiss ski resort of Davos, providing a snowy backdrop for leaders and CEOs to opine on international affairs, including close to 65 heads of state and government On Wednesday afternoon, US President Donald Trump is set to speak, with all eyes on whether he will further stoke a potential US-European trade war over his bid to grab Greenland.
Despite geopolitics grabbing the limelight, there are panels addressing issues including electric vehicles, energy security and climate policy. Keep up with top takeaways from those discussions and other climate news from Davos in our bulletin, which we’ll update throughout the day.
In energy transition’s “messy phase”, climate policy falters but clean tech marches on
Politicians may be struggling to free themselves from the clutches of fossil fuel interests, but that won’t slam the brakes on the march of clean tech and renewables worldwide, former US Vice-President and longtime climate advocate Al Gore said at Davos on Wednesday.
Moderating one of the first panels on day two in an almost empty room, he made a stab at answering the question posed by the World Economic Forum: “How do we avoid a climate recession?”
Gore said he sees “a climate policy recession, but not a recession in the energy transition”. That, he explained, is because policy is controlled by governments – “and too many governments are now, unfortunately, controlled by special interests”, namely the fossil fuel industry which is “significantly better at capturing politicians than at capturing emissions”.
The result has been “schizophrenic” policy on addressing climate change in some countries, including in the US, he said, with periods of slamming on the brakes and “going back to the dirty fossil fuels” to satisfy the industry.
In the real world, however, the advantages of renewable energy have become obvious, as have the consequences of the climate crisis, he added, listing a litany of recent impacts.
On the technology front, Gore pointed out that in 2025, of all new electricity generation installed worldwide, 93% was renewables, and “the only thing coming down faster in price than solar panels is utility-scale batteries, because the production is doubling every year”. “So we don’t have a recession in the movement toward this energy transition, in my opinion,” he added.
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Climate at Davos: Energy security in the geopolitical driving seat
While climate change is a lower priority for leaders at this year’s World Economic Forum, control of energy supplies and minerals is a hot topic -
Roadmaps and Colombia conference aim to shift fossil fuel transition into higher gear
In 2026, global dialogues will chart a path to shift away from fossil fuels without harming workers or financial systems, experts told Climate Home -
At ‘Davos of mining’, Saudi Arabia shapes new narrative on minerals
Over 100 countries attended the Future Minerals Forum in Riyadh, putting the Kingdom at the heart of discussions on minerals for the energy transition
Entrepreneur Zhang Lei, founder and CEO of Envision, which develops technology for clean energy systems and AI-powered energy digital platforms, said there may be some swings in climate policy but “the fundamental physics is actually improving”.
He pointed to an 80% drop in the price of energy storage in the last three years, which he said opens up a lot of opportunities to increase the penetration of wind and solar. That, he added, is exactly what is needed to meet the upsurge in electricity demand driven by the advent of artificial intelligence (AI), describing renewables as “infinite and inexpensive energy resources”.
Fossil fuels, by contrast, are “finite” and therefore not up to the job of powering an AI-based future, with electricity supply expected to increase by 10 times in the next 15 years. Renewables, however, are competitive and approaching “zero marginal cost”, he noted.
“We are so lucky to have renewable energy ready” to take advantage of “great prosperity” driven by AI, Zhang Lei added, noting China’s pivotal role in providing the necessary clean tech to much of the world.
Investment by China is making the renewable energy transition “irreversible”, argued Elizabeth Thurbon, professor of international political economy and director of the Green Energy Statecraft Project at the University of New South Wales.
China will stay on this path, she added, because the government understands that the energy transition “is a massive national security multiplier” by boosting economic security, energy security, environmental security, social security through jobs and geo-strategic security.
Globally, however, she warned that the transition is “in a really messy, messy phase”, due largely to poor governance, especially across a lot of Western countries.
Carsten Schneider, Germany’s environment minister, argued that the European Union, for one, has not taken its foot off the climate policy pedal, agreeing a new emissions reduction goal of 90% by 2040 last December. But that was a hard-fought win, amid pressure from some coal-reliant Eastern European countries to soften the target.
EU’s new climate target lines up multibillion-dollar boost for carbon markets
On Tuesday afternoon, in a separate panel, Andrew Forrest, executive chairman and founder of Australian mining company Fortescue, advised politicians and business people not to waver in their commitment to the energy transition – from an economic perspective, if nothing else.
He spoke of his company’s plan to save up to a billion dollars per year in operating costs by removing over a billion litres of diesel from its supply chains by 2030, replacing the dirty fuel used by trucks, trains and ships with renewable energy and batteries. This will improve Fortescue’s efficiency and competitiveness, and cut pollution, Forrest added, enabling it to outperform its peers.
He appealed to fellow business and political leaders to follow economic sense, urging them not to turn away from renewables in 2026 “because the winds of politics blew your values over”.
The post Climate at Davos: Clean tech powers on despite policy wobbles appeared first on Climate Home News.
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