China has reported that its coal sector has seen significant expansion in the first half of 2025, despite the clear proclivity for renewable energy. A report published by the Center for Research on Energy and Clean Air (CREA) and the US-based energy analytics company, Global Energy Monitor (GEM), states that China has expanded its coal power capacity generation significantly more this year than in the last 9 years. China is among the heaviest energy consumers in the world, as well as being one of the worst polluters in the world; as such, the energy sector in China needs innovative projects that deliver vast amounts of power to the nation’s populace.
Despite the proclivity for renewable energy, China is still reliant on the coal sector
The aforementioned proclivity for renewable energy in China is on the rise. Having said that, China still relies heavily on the coal sector to deliver vast amounts of the nation’s power. In 2016, coal accounted for three-quarters of China’s energy capacity; in 2025, that number has dropped to about 50%. The report from the Center for Research on Energy and Clean Air (CREA) noted that China brought 21 gigawatts (GW) of coal power online in the first six months of 2025.
China’s leadership has lofty ambitions to reduce the exceedingly high greenhouse gas emissions that the nation produces. Chinese President Xi Jinping noted that he will announce China’s Nationally Determined Contributions (NDC) before November’s COP30 climate summit in Brazil. This year’s surge for the coal sector follows two years of consistent coal project permit approval, which led to more than 100 GW of coal power capacity added to the grid.
“Coal power development in China… shows no sign of easing, leaving emissions on a high plateau and stranding coal in the system for years to come,” – Christine Shearer, research analyst at GEM
The rise in coal capacity dampens the progress being made in the renewable energy sector
While China is still reliant on coal power, the progress being made in the renewable energy sector beggars belief. Solar capacity, for example, rose by 212 GW in the first six months of this year. Additionally, in 2025 alone, China is on track to install enough new renewable energy to cover the energy needs of Germany and the United Kingdom combined.
In 2022 and 2023, China approved, on average, two new coal power plants every week. That approval has not dampened the progress of the renewable energy sector. The state of energy affairs in China is the complete opposite of what is currently taking place in the US, with several coal sites being ordered by the DOE to continue operating under “emergency orders”.
Several industry insiders have cautioned that China needs to roll back its reliance on the coal sector in favor of the more environmentally friendly renewable energy sector.
“China’s clean energy boom is driving both economic growth and decarbonisation, but continued coal expansion risks holding it back, More coal power plants would not only waste investment, but also crowd out renewables–the real engine of China’s economic future.” – Qi Qin, lead author of the report and China Analyst at CREA
China will remain a leader in the energy sector for the foreseeable future
China is a major player in the global energy sector. It has experienced tremendous growth in the past thirty years, thanks to a unique political landscape that promoted the financial benefits of capitalism while keeping the country rooted in its communist foundation. That growth has led to China becoming the second-largest economy in the world, second only to the United States, which has extended the lifecycle for the coal industry by implementing executive orders that aim to promote the coal sector.
