- China will continue phasing out fossil fuels and reforming its electricity system, focusing on expanding green electricity trading and renewable energy use.
- China achieved its goal of installing 1,200 gigawatts of wind and solar power six years early, but analysts warn that it may struggle to meet carbon intensity reduction targets.
- The white paper reaffirms previously announced energy initiatives but introduces a few new strategies for the ongoing energy transition.
The National Energy Administration (NEA) announced on August 29, in a white paper, that China will continue phasing out fossil fuels and reforming its electricity system. The document emphasises China’s progress in energy reform but offers few new plans for its transition.
NEA head Zhang Jianhua confirmed China’s commitment to reforming its electricity system. He outlined plans to expand the spot market, promote green electricity trading, and increase renewable energy use. Market-oriented reforms remain a priority.
During a press conference hosted by the State Council, Zhang revealed China invested $676 billion in its energy transition last year. The figure, cited from BloombergNEF, shows China’s investment accounted for 38% of the total global GDP.
China’s power system still relies heavily on coal despite progress in renewables. When asked if China’s carbon emissions could peak before its 2030 target, NEA Planning Department Deputy Director Song Wen affirmed that the “dual carbon target will not change.” He added that China will stick to its primary targets.
China initially aimed to install 1,200 gigawatts of wind and solar power by 2030 but reached this goal in July, six years early. When questioned about setting more ambitious renewable energy targets for 2030, New Energy Department Director Li Changjun explained that China will set new goals based on national conditions.
Analysts point out that China falls short of some objectives, such as reducing carbon intensity—CO2 emissions per unit of economic output—by 18% over the five years to 2030. According to Carbon Brief, a non-profit organisation, China must cut absolute emissions by 7% annually in 2024 and 2025 to meet this goal.
The white paper reaffirms several previously announced initiatives, including advancing energy storage technology and promoting energy conservation. It also highlights China’s efforts to promote green energy cooperation under the Belt and Road Initiative.
One notable project, Pakistan’s Karot hydropower station, forms part of the China-Pakistan Economic Corridor. Recent militant attacks have threatened its progress.
China leads globally in the transition to renewable energy, yet its reliance on coal continues to pose challenges. The white paper showcases accomplishments but introduces new strategies for reducing fossil fuel dependence.
China’s energy transition drives its economic strategy. While the country has made significant investments, it faces ongoing challenges in meeting future targets.
The NEA’s reaffirmation of its targets underscores China’s commitment to its long-term goals. However, achieving these goals will require overcoming significant challenges, particularly in reducing carbon intensity and increasing renewable energy use.
In summary, China remains committed to phasing out fossil fuels and advancing its energy transition. The focus will stay on reforming the electricity system, increasing renewable energy, and ensuring the country meets its carbon reduction targets by 2030. Analysts warn that more ambitious efforts may be necessary to meet these goals.