China has approved roughly 25 GW of new coal plants in the first half of this year, which underscores the importance of the coal sector in the nation. The Chinese government has reported that the coal sector is still one of the major energy generation sectors in the country and will most likely remain so for the foreseeable future, despite the nation’s attempts to roll back the reliance on coal in favor of more environmentally friendly energy generation sectors. Despite that stance, the coal sector has seen a rise in output for the first half of this year.
China still relies heavily on the coal sector to produce enough power to meet its needs
China is among the most technologically advanced nations in the world. Nearly every day, we hear of some new project in China that has the potential to completely reshape the market it is in.
The Chinese are an extremely industrious people who have proven time and time again that they are capable of reshaping several sectors that other countries could only dream of. Reports from the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM) state that China approved 25 GW of new coal power projects in H1 2025.
Those numbers show that newly proposed and revived projects reached 53 GW in the first half of 2025, which underscores the importance of the coal sector in China, which has been welcomed by the vast array of coal producers in the country.
It also undermines the stance that the Chinese government has taken in the coal sector overall. It was recently announced that coal output is expected to dip due to the government conducting inspections at coal sites in order to curb oversupply. Around 21 GW of coal-fired capacity was brought online between January and June, the highest first-half total since 2016.
“Coal’s share in power generation has fallen to record lows, but additions remain at decade highs, reflecting the persistence of structural and institutional reliance on coal in China’s power system,” – Centre for Research on Energy and Clean Air and Global Energy Monitor
China has a long way to go if it aims to reach its decarbonization goals
China has an exceedingly large population, and that populace needs massive amounts of power to meet their daily needs. The nation is also one of the worst polluters in the world, with Beijing blanketed in a cloud of smog on a daily basis.
The government has put measures in place to alleviate that smog and emissions overall. They have incentivized the renewable energy sector and have established several projects that aim to transition the country away from fossil fuels in favor of the renewable energy sector.
China’s National Statistical Bureau data showed that the country produced 2.40 billion mt of raw coal in the first six months of 2025, up 5.4% year over year. The coal sector has seen a split in support coming from the biggest countries in the world. While China opts to invest in renewable energy, the United States has taken steps to roll back the progress made in the energy sector under the previous administration.
The outlook for the coal industry in China is set to decline for the rest of the year
The news of 25 GW of new coal plants in China this year is a welcome trend that the coal sector will be hoping continues; however, the government has stated that this trend is temporary as it aims to place more of a priority on meeting its lofty emission goals, emphasized by the Presidents speech at the 80th Assembly of the United Nations in New York. The coal sector in America has seen several sites being auctioned off by the government; one suspects that trend will not cross the divide and take place in China as well.
