Sylvie Willis
China is currently the world's biggest emitter of climate-wrecking greenhouse gases, largely due to its burning of fossil fuels. In 2022, fossil fuels accounted for 82% of primary energy consumption in China, with coal alone accounting for around 60% of the country's energy generation and over 50% of its energy consumption. China has pledged to reduce its dependence on fossil fuels and increase its use of renewable energy sources, but it continues to struggle to curb its fossil fuel consumption and has even seen a surge in permits for new coal-fired power plants. While China has made significant progress in developing renewable energy sources, its energy needs are growing rapidly, and it will require continued modernisation, making an all-of-the-above strategy imperative for policymakers.
| Characteristics | Values |
|---|---|
| Share of energy from fossil fuels | 70% of total electricity generation |
| Share of energy from coal | 60% of energy generation, 50% of energy consumption |
| Share of energy from non-fossil fuels | 15.9% in 2020, 25% targeted for 2030 |
| Renewable energy capacity | 1,200 gigawatts targeted for 2030 |
| Solar capacity | 1,000 gigawatts targeted for 2026 |
| Nuclear power reactors | 53 as of January 2022 |
| Installed renewable capacity | More than doubled between 2020 and 2023 |
| Population exposed to harmful emissions from household burning of coal | 36% in 2020 |
| Cumulative carbon emissions | Largest in the world |
| Global investment in energy transition | $266 billion in 2021 |
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What You'll Learn
China's commitment to renewable energy
China has made significant strides in the adoption of renewable energy, with a particular focus on solar and wind power. In 2020, the country pledged to reach 1,200 gigawatts of renewables capacity by 2030, more than doubling its capacity. China is on track to meet this target ahead of schedule, with a projected 1,000 gigawatts of solar power alone by the end of 2026. This commitment to renewable energy has made China a global leader in the sector, driving down prices and increasing accessibility worldwide.
China's 14th Five-Year Plan outlines ambitious renewable energy targets, aiming for 33% of its electricity generation from renewables by 2025. The country has also committed to nuclear energy, with plans to increase installed capacity to 70,000 MW by 2025. Despite these efforts, China still generates about 70% of its electricity from fossil fuels, and there has been a surge in permits for new coal-fired power plants. However, China has pledged to "strictly limit" the increase in domestic coal consumption and increase the share of non-fossil fuels in primary energy consumption.
China's influence extends beyond its borders through initiatives like the Belt and Road Initiative, where it finances and constructs solar energy projects in developing nations. By exporting its technology and expertise, China is shaping the global market and driving the adoption of renewable energy worldwide. China's efforts are expected to make a substantial impact on global renewable energy capacity, with predictions that it will account for more than 50% of the world's renewables by 2030.
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Fossil fuels and China's economy
China's economy is heavily reliant on fossil fuels, with coal, oil, and gas accounting for a significant portion of its primary energy consumption. In 2022, fossil fuels made up about 82% of China's primary energy consumption, with coal alone contributing around 60%-81% of its energy generation and over 50% of its energy consumption. China's large and energy-intensive economy has driven its energy needs, leading to a surge in the use of fossil fuels.
However, China has also become a world leader in renewable energy sources. The country has achieved impressive growth in its installed renewable capacity, with renewables now accounting for over half of its total capacity. China has set ambitious targets for renewable energy, pledging to reach 1,200 gigawatts of renewables capacity by 2030, and has invested heavily in the clean energy transition.
The Chinese government has acknowledged the need to reduce its reliance on fossil fuels and has committed to various climate pledges and agreements. For example, China has pledged to peak carbon emissions by 2030 and has taken steps to increase the use of renewable energy sources, such as solar and wind power. In 2021, China invested $266 billion in energy transition measures, more than one-third of the global total.
Despite these efforts, China continues to struggle with curbing its fossil fuel consumption. This is partly due to the practical challenges of transitioning to renewable energy sources and ensuring a stable power supply. China's coal fleet is highly efficient, and the country has abundant domestic coal supplies, making it economically advantageous to continue relying on coal. Additionally, China's giant grid system prefers high-speed transmission from reliable sources, which currently favors coal-fired power plants over renewables.
Furthermore, China's energy security concerns and geopolitical tensions have influenced its energy choices. Securing access to foreign sources of energy is vital for China's ongoing growth and development, and fossil fuels may provide a more immediate solution to meet the country's growing energy demands.
In conclusion, China's economy is heavily dependent on fossil fuels, particularly coal, which has been a key driver of its energy-intensive economic growth. While China has made significant strides in adopting renewable energy sources and has committed to reducing its reliance on fossil fuels, it continues to face challenges in curbing its fossil fuel consumption due to practical, economic, and energy security considerations. Balancing these factors will be crucial in shaping China's energy landscape and its impact on the global climate in the years to come.
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China's coal consumption
China is the world's largest consumer and producer of coal. In 2021, its coal consumption and production accounted for more than half of the world's total. Coal consumption in China is closely linked to the country's industrialization. Between 2002 and 2013, coal accounted for 77% of the increase in primary energy demand, driven mainly by coal consumption in the cement, chemical, and steel sectors. In 2020, 60% of coal was used for electricity and heat generation, with industry accounting for an additional one-third of demand. In 2021, 62.6% of China's power generation came from coal, which decreased to 59% in 2024.
China has taken steps to reduce its coal consumption and increase the use of renewable energy sources. In 2020, China pledged to make non-fossil fuels 20% of its energy supply by 2030 and to peak CO2 emissions by 2030. At the UN Climate Ambition Summit in 2020, Chinese President Xi Jinping further committed to achieving carbon neutrality by 2060. In 2021, China invested $266 billion in energy transition measures, more than one-third of the global total.
Despite these efforts, coal consumption in China remains high due to various factors. China imported approximately 8-10% of the coal it used in recent years, with net imports accounting for around 6-7%. China's import requirements have been driven by surging electricity demand, domestic transportation bottlenecks, economic factors, and environmental and safety considerations. Additionally, long-term contracts, guaranteed operating hours, and economic incentives have incentivized local governments and coal companies to favor coal-fired power plants.
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Nuclear power in China
China has been increasingly turning to nuclear power to reduce its reliance on fossil fuels. As of April 2024, China had 55 operating nuclear reactors, with a net capacity of 53.2 GW. This rapid growth in nuclear power capacity has been part of a long-term strategy implemented in 2011 to meet electricity demands and address environmental concerns.
In 2022, China operated 53 nuclear power reactors, generating a total of 50,769 MW of energy. China's national economic blueprint, the 14th Five-Year Plan, outlined plans to increase nuclear capacity to 70,000 MW by 2025. China has two major nuclear power companies: the China National Nuclear Corporation, operating mainly in northeast China, and the China General Nuclear Power Group, operating mainly in southeast China.
China's interest in nuclear power dates back to the Cold War, when security concerns motivated the development of nuclear power. With the help of the USSR, China established its first central atomic research facility in Beijing and signed the Sino-Soviet Atomic Cooperation Treaty in 1955. China's nuclear development continued despite the end of Soviet aid in 1959, and by the 1980s, it had constructed its first independently designed and built nuclear power plant, the Qinshan Nuclear Power Plant.
China's nuclear fleet is concentrated near population centers in the eastern part of the country, along the coast of the Pacific Ocean. While nuclear power generation is a zero-carbon emitting technology, coal remains China's largest source of electricity generation, contributing significantly to air pollution and making China the world's largest contributor of carbon dioxide emissions. However, China has pledged to reduce its coal consumption and increase the share of non-fossil fuels in its energy mix, with nuclear power playing a key role in this transition.
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China's energy imports
China's reliance on imported fossil fuels has grown as its economy has expanded. In 1990, China's coal production met most of its domestic energy needs, with only 2 million tons of coal imported. However, by 2009, China had become a net importer of coal, bringing in 125.8 million tons to meet its rising energy demands.
China's energy security is a critical aspect of its Dual Circulation Strategy. The country is vulnerable to disruptions in its energy imports due to overseas political instability and events like the COVID-19 pandemic and the Ukraine-Russia conflict. To reduce this vulnerability, China has invested heavily in renewable energy sources and has committed to decreasing its dependence on fossil fuels.
China has made significant strides in renewable energy, with renewables now accounting for half of its installed capacity. The country has pledged to further increase its share of non-fossil fuels in primary energy consumption, aiming for 25% by 2030. China is also turning to nuclear power, with plans to increase its installed nuclear capacity. These efforts are part of China's commitment to the Paris Agreement and its goal of achieving carbon neutrality by 2060.
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Frequently asked questions
Yes, China uses fossil fuels.
In 2022, fossil fuels accounted for 82% of China's primary energy consumption. However, other sources claim that fossil fuels now make up less than half of China's total installed generation capacity.
China uses coal, oil, and gas. Coal accounts for around 60% of China's energy generation and over 50% of its energy consumption.
Yes, China is trying to reduce its use of fossil fuels and transition to renewable energy sources. China has made commitments to increase the share of non-fossil fuels in primary energy consumption and has invested heavily in renewable energy projects.
China has made progress in reducing its use of fossil fuels and increasing its use of renewable energy. However, it is still heavily reliant on fossil fuels, particularly coal, and continues to face challenges in fully transitioning to renewable energy sources.
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