
- Growth in clean power generation has now overtaken the current and long-term average growth in electricity demand, pushing down fossil fuel use.
- Power-sector emissions fell 2% year-on-year in the 12 months to March 2025.
- If this pattern is sustained, then it would herald a peak and sustained decline in China’s power-sector emissions.
- The trade “war” initiated by US president Donald Trump has prompted renewed efforts to shift China’s economy towards domestic consumption, rather than exports.
- A new pricing policy for renewables has caused a rush to install before it takes effect.
- There is a growing gap that would need to be bridged if China is to meet the 2030 emissions targets it pledged under the Paris Agreement.
China’s emissions decline due to clean power
Over the past decade, China’s CO2 emissions from fossil fuels and cement have risen by nearly a fifth, but there have been ups and downs along the way.The shallow decline in 2015 and 2016 was due to a slump that followed a round of stimulus measures, while zero-Covid controls caused a sharper fall in 2022. Overall, however, emissions have continued to increase, pausing only during periods of economic stress.More recently, there have been signs that China’s CO2 emissions could be close to reaching a peak and plateau, or even a period of structural decline.The latest data, for the first quarter of 2025, shows that China’s CO2 emissions have now been stable or falling for more than a year, as shown in the figure below.However, with emissions remaining just 1% below the recent peak, it remains possible that they could jump once again to a new record hig