Helena Joyce
China is the world's biggest emitter of carbon dioxide (CO₂) emissions, accounting for over 31% of global emissions in 2022. The country's industrial sector is responsible for 35% of its total energy sector emissions, with steel, coal power, chemicals, non-ferrous metal smelting, and petrochemicals classified as dual-high industries due to their high energy consumption and emissions. China's per-capita emissions are lower than those of the US and other major economies, and the country has pledged to reach net-zero emissions by 2060. However, China's heavy reliance on coal power and the absence of a national climate law present significant challenges in combating climate change.
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What You'll Learn
China's status as a developing country
China is the world's largest emitter of carbon dioxide (CO2) and is responsible for over 31% of global emissions. The country is heavily reliant on coal power, with 1,058 coal plants currently in operation, which is more than half of the world's capacity. China's industrial sector is responsible for a significant portion of its emissions, with the production of steel, cement, chemicals, and other high-energy consumption industries contributing to its high emissions. Despite being the biggest emitter today, China's share of cumulative emissions since the industrial revolution is smaller than that of the US.
When it comes to China's status as a developing country, it is important to note that the country has the world's second-largest economy and the largest military. However, China still has one of the lowest GDPs per capita, and its average life expectancy and infant mortality rates are worse than most other countries with similar overall wealth. China's development status is a matter of debate, with some arguing that its large and advanced cities, such as Beijing and Shanghai, are comparable to developed countries. However, there are also vast rural areas and smaller cities in China where living standards are much lower, with many lacking access to basic amenities like electricity, heating, and running water. This disparity between different regions of China contributes to the argument that it is still a developing country.
Historically, China has identified as a developing country, standing in solidarity with newly independent nations in Asia and Africa and advocating for the sovereignty and self-determination of "Third-World" nations. China's alignment with anti-colonial and anti-imperial movements has reinforced its claim as a crucial part of the developing world. Additionally, China's membership in organizations like the Group of 77 at the United Nations further emphasizes its alignment with the developing world.
In summary, China's status as a developing country is a complex issue that involves economic, historical, and geopolitical factors. While China has made significant progress and developed areas, particularly in its large cities, it also faces challenges typical of developing nations, including income inequality and regional disparities. The country's large population and varying levels of economic development contribute to the argument that it is still a developing nation, despite its global influence and economic power.
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China's energy consumption
China's energy sector is heavily reliant on coal, which has had detrimental environmental and social impacts. In 2019, coal represented 57.6% of the Chinese energy mix. Coal combustion is a major contributor to air pollution in China, posing risks to public health, and it also significantly adds to the country's CO2 emissions. China emitted nearly 9.9 billion tonnes of CO2 in 2020, accounting for 30.7% of global emissions.
The country has implemented policies to address its energy consumption and emissions, with a focus on improving energy efficiency and transitioning to a low-carbon energy system. Since 2011, China's energy policy has aimed to mitigate climate change, and the government has pledged to reach net-zero emissions by 2060, with a peak no later than 2030. To achieve this, China is promoting market-oriented tools such as energy rights trading and emissions trading, and it has also launched a national emissions trading system (ETS) to control the energy consumption and emissions of specific industries.
China's industrial sector is a significant contributor to its energy consumption and emissions. Industry is responsible for 35% of the country's total energy sector emissions, and China produces a large proportion of the world's steel, cement, chemicals, and other energy-intensive products. The transport sector is also a major area of focus, with oil-powered passenger cars, trucks, and airplanes dominating transport energy use. The electrification of the transport sector, such as through the adoption of electric vehicles (EVs), is seen as a crucial strategy for reducing CO2 emissions.
Overall, China's energy consumption is closely tied to its economic growth, and the country is working towards a more sustainable balance between the two. While challenges remain, China is taking steps to reduce its energy consumption and transition to a lower-carbon economy.
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China's coal power reliance
China is the largest producer and consumer of coal and coal power in the world. In 2024, coal accounted for approximately 59% of China's electricity generation, with wind, solar, hydro, and nuclear contributing most of the remainder. China produces approximately 4.8 billion tons of coal per year, over half of the global total. China's coal consumption was 1907 Mtoe in 2018, which was 50.2% of the global consumption. The country is currently running 1,058 coal plants, more than half of the world's capacity.
China's reliance on coal is driven by several factors. Firstly, coal is a significant source of energy for the country, with 56-59% of its energy supplies coming from coal-fired plants. Secondly, coal is a major source of employment, with over 3.21 million people directly dependent on coal-related jobs. Additionally, coal-dependent regions often have specialized "mono-industry" areas closely tied to the coal value chain, making the transition away from coal challenging.
The Chinese government has set targets to cap coal consumption and reduce its share in the country's energy mix. They have promoted the use of cleaner coal technologies, such as ultra-supercritical and integrated gasification combined cycle (IGCC) power plants, and explored new technologies like carbon capture and storage (CCS) and hydrogen fuel cells. However, China's energy transition faces challenges, including the need to upgrade the power grid infrastructure to better integrate renewable energy sources and continued investment in research and development of new technologies.
China's growing reliance on coal has drawn criticism for undermining global efforts to tackle climate change. Despite being the largest emitter of carbon dioxide (CO2) emissions in 2022, accounting for over 31% of global emissions, China has increased coal mining and imports in recent years. Beijing's focus on boosting coal-fired energy output to address power crises, such as heatwaves and droughts, has led to concerns about the impact on global warming and climate change.
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China's industrial emissions
One of the primary sources of industrial emissions in China is the burning of fossil fuels, particularly coal. Coal-generated electricity and heat account for 33% of the energy supplied to the industrial sector. China's heavy reliance on coal power is evident in the operation of 1,058 coal plants, constituting more than half of the world's capacity. While the country has recognised the need to transition to cleaner energy sources, it has not yet imposed caps on coal capacity or generation in its five-year plans.
To address industrial emissions, China has implemented various policies and interventions. The country has introduced command-and-control policies targeting dual-high industries, including capacity replacement, fuel switching, and technology transformation. China is also promoting market-oriented tools, such as energy rights trading and emissions trading, with its national emissions trading system (ETS) launched in 2021. Additionally, China's National Plan for Tackling Climate Change includes adaptation, mitigation, scientific study, and public awareness components.
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China's emissions trading system
China is the biggest emitter of carbon dioxide (CO₂) emissions, accounting for over 31% of global emissions in 2022. Despite this, China's share of cumulative emissions since the Industrial Revolution is much smaller than that of the US, which has emitted over 400 billion metric tons of CO₂ since 1750. China's large emissions are due in part to its heavy reliance on coal power, with the country currently operating 1,058 coal plants, more than half of the world's capacity. China also produces nearly 60% of the world's steel and cement, as well as 30% of the primary chemicals used to make plastics and fertilisers.
In order to address its emissions, China has implemented various policies and initiatives, including its Nationally Determined Contributions (NDCs) under the Paris Agreement, which aim to reduce national emissions and adapt to the impacts of climate change. China has also set a goal of reaching net-zero emissions by 2060, with a peak no later than 2030. To achieve these goals, China has implemented a number of command-and-control policies to control the energy consumption and CO2 emissions of high-polluting industries, including capacity replacement, fuel switching, and technology transformation.
One of the key initiatives in China's emissions reduction strategy is the development of a national emissions trading system (ETS). The ETS was launched in 2021 and is currently the largest emissions trading system globally, covering more than 3,500 companies from the power, steel, cement, and aluminium smelter sectors. The system uses a market-based mechanism, allowing companies to acquire rights to release a certain amount of pollutants, known as allowances, which can be traded. The initial allowances covered an estimated 4.5 billion tonnes of CO2, and the market price per tonne of CO2e was around RMB 50, which was higher than the prices in some other emissions trading systems during their initial launch phases.
The ETS is built on the success of regional carbon markets implemented in seven regions, including Beijing, Chongqing, Guangdong, Hubei, Shanghai, Shenzhen, and Tianjin, which represent 25% of China's total GDP. These pilots continue to operate in parallel with the national ETS, covering sectors and entities not included in the national system. The national ETS initially only covered electricity generation, but it is expected to expand to other sectors over time, with a number of manufacturing industries, including steel, cement, and aluminium, to be added.
The Chinese government has also implemented a forestry carbon credits scheme, where owners of forests, typically rural families or villages, receive carbon tickets that are tradeable securities. Additionally, China has gained experience in drafting and implementing its ETS plan from the United Nations Framework Convention on Climate Change (UNFCCC) and has learned from the European Union and California's cap-and-trade programs. The ETS has the potential to play an important role in China's transition to carbon neutrality, but it has been criticised for its limited impact on CO2 emissions so far, due to factors such as a generous supply of allowances and a lack of a hard cap on emissions.
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Frequently asked questions
China is responsible for 27% of global carbon dioxide emissions and a third of the world's greenhouse gases. China emitted 14 billion tons of CO2 in 2022, accounting for over 31% of global emissions.
China is the world's largest emitter of carbon dioxide, with emissions primarily driven by its extensive use of coal. The United States is the second-largest emitter, and the two countries are responsible for 60% of global CO2 emissions. China's per-person emissions are lower than those of the United States, with the average Chinese person using far less energy.
China has included domestic climate targets in its most recent five-year plan, including ensuring that zero-emissions fuels make up 25% of energy consumption and half of installed generation. China has also announced that it will no longer build coal-fired power plants abroad and will increase support for other countries in developing green and low-carbon energy. China aims to reach peak carbon emissions before 2030 and achieve carbon neutrality by 2060.
