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China’s H1 2025 carbon emissions decline, driven by renewables

by DynamicTradesToday
August 21, 2025
in Investing
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China’s H1 2025 carbon emissions decline, driven by renewables
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China saw a 1% decrease in carbon dioxide emissions during the first half of 2025 compared to the same period in the previous year. 

This positive trend is attributed to the increasing adoption of renewable energy sources for power generation within the country. 

The findings come from a study conducted by the Centre for Research on Energy and Clean Air, an organisation based in Helsinki, Reuters said in a report. 

Ongoing efforts

This development highlights China’s ongoing efforts to transition towards cleaner energy and mitigate its environmental impact, suggesting a shift in its energy landscape with a growing emphasis on sustainable practices.

Greenhouse gas emissions from China’s power sector, the country’s largest source, decreased by 3% over a six-month period.

This finding comes from a study conducted by Lauri Myllyvirta, lead analyst at CREA, for the UK-based research organization Carbon Brief.

The recent decline in global emissions has been largely attributed to a significant surge in renewable electricity generation, particularly from China’s rapidly expanding fleet of solar power plants. 

Myllyvirta, a leading expert in the field, highlighted that this dramatic increase in solar capacity is a primary driver behind the observed reduction. 

China, a global leader in renewable energy development, is projected to achieve another year of unprecedented record capacity additions in 2025 for solar power. 

This sustained growth in clean energy infrastructure is critically impacting global emissions trajectories, placing them firmly on track for a notable full-year decline in 2025, according to comprehensive studies conducted on the subject. 

The implications of this trend extend beyond China, offering a crucial blueprint for other nations striving to mitigate climate change through accelerated renewable energy adoption.

Reduction in emissions

China, as the world’s largest emitter of carbon dioxide, experienced an annual decrease in its carbon emissions in 2022, primarily attributed to the impacts of the COVID-19 pandemic. 

The nation has set ambitious environmental goals, aiming for its carbon emissions to reach their peak by the year 2030. 

Furthermore, China is committed to achieving net-zero carbon emissions by 2060. 

These targets underscore China’s long-term strategy to transition towards a more sustainable and low-carbon economy, reflecting its increasing commitment to addressing climate change on a global scale.

During the first half of the year, from January to June, China experienced a notable shift in its energy consumption within the power sector. 

Data indicated that the use of coal for electricity generation saw a decrease of 3%. This decline suggests a potential move towards cleaner energy sources or a change in overall energy demand.

Conversely, the consumption of natural gas for electricity production increased by 6% over the same period. 

China’s struggling property market led to a decrease in emissions from building materials, metals, cement, and steel.

A recent study indicated a continued increase in carbon emissions from China’s chemicals industry, a trend that diverges from other major sectors. 

This rise is attributed to a 20% increase in the use of coal as an input for synthetic fuels and petrochemical products during the first half of the year.

According to the analysis, coal-to-chemicals growth has increased China’s carbon emissions by 3% since 2020, with a potential additional 2% increase by 2029.

The post China’s H1 2025 carbon emissions decline, driven by renewables appeared first on Invezz

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