China Demonstrates Harmonious Energy Transition with Industry Amidst Increased Energy Demand: Nation Holds Steady on CO2 Emissions

China, the world's largest emitter of CO2, has seen a significant shift in its emissions pattern, thanks to the historic expansion of renewable energy. This change, which has caused China's emissions to plateau, is altering the international climate policy debate.

According to the Finanzmarktwelt.de, the author of an article about CO2 development in China remains unidentified. Regardless, the facts speak for themselves. In the first half of 2025, China added 212 gigawatts of solar power, enough to power Germany and the UK combined. This record expansion of solar and wind energy is a significant factor in altering the previous trend of increasing emissions.

The new pricing mechanism for wind and solar power in China has ensured the necessary capacities to meet the central government's requirements. As a result, the installed capacity of renewables has grown by 639.94 gigawatts in the last one and a half years, representing 89.1% of all new capacities.

The decrease in emissions is attributed to a plateau that has formed since April 2024. If the trend continues, an emissions peak around 2025 is possible in China, much earlier than officially announced. This would be a significant milestone, as China's relative share of global CO2 emissions declined from over 32% in 2022 to 19% in the previous year.

However, China is unlikely to meet the CO2 intensity target in the current five-year plan by 2025. Several goals, including reducing CO2 intensity, limiting coal consumption, and increasing the share of electric arc steel, are expected to be missed in the 2021 to 2025 period.

Despite these challenges, ambitious expansion targets until 2035 would have both climate political and economic significance. Doí Ennoson, who regularly analyzes China's economy, energy policy, and industrial development for Finanzmarktwelt.de, highlights the potential economic benefits of a continued focus on renewable energy.

Extreme weather conditions, such as hot summers and cold winters, have significantly increased power demand for cooling and heating in China. During the same period, coal and gas increased by 74.32 gigawatts, or 10.4%, while nuclear grew by 3.9 gigawatts. Yet, the installed capacity of solar and wind has now surpassed coal for the first time.

CREA's calculations show that China's CO2 emissions in the first half of 2025 were around 0.8% lower than the previous year. This marks the first time in years that China's emissions have decreased.

In the power sector, CO2 emissions decreased by three percent due to the rapid expansion of renewables. This shift towards renewable energy is not just a step towards a cleaner environment, but also a sign of a new direction in China's energy policy. As the world watches, China's emissions plateau and the record expansion of renewable energy are changing the international climate policy debate.

China Demonstrates Harmonious Energy Transition with Industry Amidst Increased Energy Demand: Nation Holds Steady on CO2 Emissions