Rise in Coal Usage Reaches a Record High, Continued Growth in Renewable Energy Sources

In the first half of 2025, China, the world's second-largest economy and biggest emitter of greenhouse gases, approved coal projects with a capacity of 25 GW and has plans for projects totaling 75 GW. This marked the initiation or continuation of planning and construction of new coal power plants, a move that threatens China's goal of peaking its carbon emissions by 2030.

The surge in coal power projects approved in 2022 and 2023, however, seems to have been addressed through improvements in grid operation and storage. This is a significant development, considering that in the first six months of 2023, China brought online 21 gigawatts (GW) of coal power, the highest total for a first half-year since 2016.

Despite this increase in coal power, China is making strides in renewable energy. In the same period, the country installed a record-breaking 212 GW of solar capacity, surpassing the total solar capacity installed in the United States by the end of 2024. Renewable energy also hit new highs during this time, with China on track to install enough clean energy (solar, wind, nuclear, and hydro) in 2025 to meet the combined total electricity demand of Germany and Britain.

However, the growth in coal power threatens to hinder the development of renewable energies in China. Only 1 GW of coal-fired power generation capacity was retired in the first half of 2025, far short of the country's target to retire 30 GW between 2020 and the end of this year. Moreover, China started or restarted construction on coal projects totaling 46 GW, equivalent to South Korea's entire coal power capacity.

In a bid to control this trend, Xi Jinping, the Chinese President, pledged in 2021 to "strictly control" coal-related projects and coal consumption growth before "gradually reducing" them between 2026 and 2030. Xi had also promised in April that the country would detail its commitments to reduce greenhouse gases by 2035, ahead of the COP30 in November.

As China prepares to announce new emission and energy targets in the coming months, as it publishes its 15th five-year plan for the 2026-2030 period, it remains to be seen how these commitments will translate into action and whether China can strike a balance between its growing energy needs and its commitment to reducing greenhouse gas emissions.

In conclusion, while China has made significant strides in renewable energy, its continued reliance on coal power and the surge in new coal projects approved in 2023 and 2025 pose challenges to its goal of peaking carbon emissions by 2030. The coming months will be crucial in determining China's path towards a more sustainable energy future.

Rise in Coal Usage Reaches a Record High, Continued Growth in Renewable Energy Sources