China lowers carbon emissions as coal power share drops below half

China reduced its carbon dioxide emissions during the third quarter as the country lowered its reliance on coal for electricity.

Lauri Myllyvirta, a chief analyst at Crea, observed that coal power generation fell by 3.3 percent while the growth of the coal chemistry industry slowed down. The analysis also noted a decrease in oil consumption for transportation.

This shift resulted from a combination of pressure on oil demand caused by the crisis in the Strait of Hormus and an increasing number of electric vehicles on the road. Additionally, emissions from the cement and steel industries declined, which the analyst suggests may stem from a crisis in the Chinese construction sector. The National Energy Administration of China reported that coal power generation dropped during the third quarter.

In the first half of the year, the share of electricity produced from coal fell below 50 percent for the first time. While China continues to build new coal capacity, the decrease in power generation suggests that power plants are operating for shorter periods on average. This data supports a trend that began in March 2024 where carbon emissions in the country have stagnated or declined. China is also increasing its production of green electricity.

The National Energy Administration stated that renewable energy production is rising, and growth in this sector may exceed the growth of total energy demand this year. This shift could lead to a structural decline in the use of fossil fuels. To achieve this, officials aim to remove obstacles that prevent wind and solar parks from connecting to the power grid to reduce the amount of green electricity lost.