China Takes Bold Steps Toward Green Energy Transition

• China has introduced new legislation and action plans to accelerate its shift from fossil fuels to green energy, achieving peak emissions six years ahead of schedule.
• The country’s recent initiatives include cutting emissions from ‘low carbon’ coal plants by 50% by 2027 and setting stringent energy efficiency targets for critical industries.

China has unveiled a comprehensive suite of new legislation and action plans to accelerate its transition from fossil fuels to green energy, signalling its commitment to leading the global shift toward sustainability. Recent indicators suggest that China has reached peak emissions six years ahead of schedule, underscoring its rapid progress in reducing its carbon footprint.

As the world’s largest emitter of carbondioxide (CO₂), China accounts for over a quarter of global emissions. Despite this, the country has positioned itself as a frontrunner in renewable energy, with renewables now surpassing coal in its energy mix.

This shift has left China with a significant surplus in its carbon budget, as outlined by the Paris Agreement 2015. The nation remains on track to meet its ambitious emission reduction goals by the 2030 deadline. To maintain this momentum, China has implemented several ambitious action plans to further curtail carbon emissions and enhance energy efficiency across various sectors.

The Coal Decarbonization Retrofit Action Plan 2024-2027, introduced in June, is a critical component of this strategy. The plan outlines a pilot program to cut emissions from ‘low carbon’ coal plants by 50% by 2027.

It includes co-firing with ammonia and biofuels and implementing advanced carbon capture technologies. Energy analyst David Fishman highlighted that, if successful, the emissions from these retrofitted coal plants would be comparable to those from gas plants.

Another significant initiative, the 2024-2025 Energy Efficiency and Carbon Reduction Action Plan, was released in May. This plan sets rigorous energy efficiency targets for energy-intensive industries, mandating they use 20% non-fossil fuels by 2025. Specific targets include 25% for the aluminium sector by 2025 and 30% by 2030, while data centres must achieve 80% non-fossil fuel use.

In August, the government announced the Action Plan for Accelerating the Construction of a New Power System (2024-2027), which addresses nine critical challenges within China’s power system. This plan proposes targeted measures and programs to tackle each issue, further reinforcing China’s commitment to a sustainable energy future.

China’s proactive approach to implementing these action plans underscores its role as a global green energy leader and highlights its significant strides toward a more sustainable and energy-efficient future.