Meghan Hodges
China is the world's largest emitter of greenhouse gases, with a significant portion of its electricity generation coming from coal. In 2019, China emitted 27% of the world's greenhouse gases, more than the entire developed world combined. China's coal use has been increasing, and while there have been efforts to reduce emissions, the country still has a highly insufficient NDC rating under the Paris Agreement. China's per capita emissions are lower than those of the US, but they have been increasing, tripling over two decades. China has pledged to reach net-zero emissions by 2060, with a peak no later than 2030.
| Characteristics | Values |
|---|---|
| China's rank in the world in terms of pollution | China is the largest emitter of greenhouse gases in the world. |
| China's total historical greenhouse gas emissions | China emitted 284 billion tons of carbon dioxide since 1850. |
| China's per capita emissions | 10.1 tons of carbon pollution annually per person. |
| China's annual emissions | 12.7 billion metric tons of emissions annually. |
| China's emissions as a percentage of world emissions | China's emissions account for 27% of the world's greenhouse gases. In 2023, China's emissions were 35% of the world total. |
| China's emissions compared to other countries | China's emissions exceeded the combined emissions of the developed world. |
| China's plan to reduce emissions | China began operating a national emission trading scheme (ETS) in July 2021. |
| China's reliance on coal | Coal accounts for roughly 70% of China's electricity generation. |
| China's coal use over time | China's coal use doubled between 2001 and 2005. China's demand for coal slowed in 2013 and declined until 2019. |
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What You'll Learn
China's coal use
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. China uses more coal than the rest of the world combined, with 54% of global consumption in 2021. Coal is widely used in China for generating electricity, producing heat, and as an industrial feedstock. In 2020, 60% of coal was used for electricity and heat generation, with the industrial sector accounting for another one-third of demand.
Coal is still one of the most widely used fuels for power generation due to its availability and low cost. However, burning coal produces large amounts of CO2 and other pollutants, making it the most polluting energy source. Coal accounted for roughly 70% of China's electricity generation in 2020. China's coal consumption 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 recent years, China has made efforts to reduce its coal consumption and shift towards cleaner energy sources. From 2013 to 2020, coal use in China remained relatively stable due to slowing economic growth and government policies aimed at limiting coal consumption. In 2021, coal consumption in China grew by almost 5% as energy-intensive industries led the economic recovery, and some previous policies limiting coal use were relaxed. However, in the first half of 2022, coal consumption decreased by approximately 2-3% year-over-year, according to preliminary estimates.
In May 2024, China's clean energy sources generated a record-high 44% of the country's electricity, pushing coal's share down to a record low of 53%. This shift away from coal-fired power plants resulted in a 3.6% drop in CO2 emissions from the power sector, which is a significant step towards reducing China's overall pollution levels.
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China's status as a developing country
China is the world's largest developing country, with a huge population and active economic growth. Its total greenhouse gas emissions are the world's highest, accounting for 35% of the global total, according to the International Energy Agency. China's per capita emissions are 10.1 tonnes of CO2 emitted per person each year, which is above the world average. However, it is worth noting that China's per capita emissions are lower than those of the United States, which has a smaller population that industrialised much earlier.
China's emissions stem mainly from coal burning, with coal accounting for 70% of China's electricity generation. China is the world's largest producer and importer of coal, and its coal use has been increasing since the early 2000s. In recent years, China has made efforts to transition to natural gas, which is considered a "clean energy" source, and has rapidly grown its renewable energy sector. However, China's gas reserves are still only one-third of those of the US, and its renewable energy deployment is still in the early stages of development.
China's rapid industrialisation and urbanisation have led to various forms of pollution, causing significant environmental and health problems. Air pollution alone kills hundreds of thousands of citizens each year, and 500 million people in China lack access to safe and clean drinking water. Soil pollution is also a major issue, with contaminated water being used to irrigate cultivable land. The Chinese government has recognised the need to improve environmental protection and has implemented policies to reduce import tariffs on certain non-renewable energy resources, increase export taxes on energy-inefficient industries, and close down inefficient power and industrial plants.
In 2021, China's central government issued "working guidance" on the country's efforts to peak carbon emissions and achieve carbon neutrality. These documents laid the foundation for China's "1+N" climate policy system, which aims to provide political guidance for the country's decarbonisation efforts. China is also investing in the development of domestic low-carbon energy supplies and supply chains for electric vehicles to reduce the need for gas and oil imports. While China's emissions and pollution levels remain a significant concern, the country appears to be taking steps towards improving its environmental performance and reducing its carbon footprint.
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China's carbon trading scheme
China is the world's largest emitter of greenhouse gases (GHG), with emissions more than tripling over the previous three decades. The country is heavily reliant on coal power, with coal accounting for roughly 70% of China's electricity generation. In 2014, China's premier Li Keqiang declared a "war on pollution", leading to efforts to shift homes from coal to gas heating and to close small coal-fired power plants near urban areas. China has pledged to reach net-zero emissions by 2060, with a peak no later than 2030.
To achieve its climate targets, China has implemented a national emission trading scheme (ETS) as a market-based mechanism. The ETS is an intensity-based trading system for carbon dioxide emissions, where emitters can buy and sell emission credits. The scheme started operating in July 2021, initially covering only the electricity generation sector, which accounts for more than 40% of the country's energy-related CO2 emissions. In 2024, the ETS was expanded to include the steel, aluminium, and cement industries, raising the share of national CO2 emissions covered by the market to 60%.
The Chinese national ETS is based on the successful experience of regional carbon markets in seven regions, including Beijing, Guangdong, and Shanghai. These pilots continue to operate in parallel with the national ETS, covering sectors and entities not included in the national system. The national ETS is managed by the Shanghai Environment and Energy Exchange, with the Ministry of Ecology and Environment responsible for its overall implementation.
One key feature of the Chinese ETS is that it does not set a fixed cap on CO2 emissions. Instead, it focuses on emissions "intensity" rather than overall emissions. This approach has been criticised for potentially limiting the scheme's effectiveness in penalising high carbon emitters. There have also been challenges in allocating allowances and ensuring efficient trade and exchange of allowances on the spot market.
In addition to the ETS, China has implemented other policies to reduce emissions, such as forestry carbon credits, where owners of forests receive tradeable securities based on forest growth. China has also established a "'1+N' climate policy system", which provides political guidance for the country's decarbonisation efforts.
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China's high energy consumption
To address its high energy consumption, China has implemented various measures. The 13th Five-Year Plan (2016-2020) set specific environmental and productivity goals, including peak goals for carbon emissions, energy use, and water use. In 2021, China introduced a national emission trading scheme (ETS) that covers the electricity generation sector, which accounts for more than 40% of the country's energy-related CO2 emissions. China has also shifted homes from coal to gas heating and closed small coal-fired power plants near urban areas, replacing them with larger, more efficient units further away.
Despite these efforts, China's Nationally Determined Contributions (NDCs) under the Paris Agreement have been rated as "highly insufficient" by the Climate Action Tracker. China's high energy consumption and emissions are also impacted by its stance as a developing country, which it argues should allow it more leeway to pollute. However, there is pressure from the international community, especially the US, to speed up plans to cut emissions and combat climate change.
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China's industrial production
China is the world's largest emitter of carbon dioxide, producing 12.7 billion metric tons of emissions annually, according to a 2023 report. China emitted 27% of the world's greenhouse gases in 2019, according to research by the Rhodium Group. The Asian giant has the world's largest population, so its per-person emissions are still far behind those of the US, but these emissions have tripled over two decades. China has pledged to reach net-zero emissions by 2060, with a peak no later than 2030.
China's high level of emissions is due to its reliance on coal, which accounts for roughly 70% of the country's electricity generation. China is currently running 1,058 coal plants, more than half of the world's capacity. In 2014, Premier Li Keqiang declared a "war on pollution," leading to efforts to shift homes from coal to gas heating and to close small coal-fired power plants near urban areas.
To address its high emissions, China began operating a national emission trading scheme (ETS) in July 2021. This scheme creates a carbon market where emitters can buy and sell emission credits. The initial phase of the national ETS only covers the electricity generation sector, which accounts for more than 40% of the country's energy-related CO2 emissions. China's central government has also issued "working guidance" on peaking carbon emissions and achieving carbon neutrality, laying the foundation for its "'1+N' climate policy system".
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Frequently asked questions
China is the world's largest emitter of carbon dioxide, producing 12.7 billion metric tons of emissions annually.
Coal burning is the main source of pollution in China, accounting for roughly 70% of the country's electricity generation.
China has implemented various measures to reduce pollution, including shifting homes from coal to gas heating and closing small coal-fired power plants near urban areas. China also operates a national emission trading scheme (ETS) that creates a carbon market where emitters can buy and sell emission credits.
China has pledged to reach net-zero emissions by 2060, with a peak no later than 2030.
China's emissions exceed the combined emissions of all developed nations. The country's per capita emissions are lower than those of the United States but higher than the world average.
