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China is rebuilding its industrial economy on a clean foundation as rapid renewable energy expansions begin to offload fossil fuels

Last Updated: 28 May 2026

Anchor point: Overview

Key energy data for China

1st

Global ranking for electricity demand

42%

Share of clean electricity

22%

Share of solar and wind

58%

Share of electricity from fossil fuels

2.2x

Power sector emissions per capita as a multiple of the global average

42% of China’s electricity was generated from clean sources in 2025, in line with the global average of 43%. 2025 saw a fall in power sector emission due to a decline in coal generation.

Hydropower remains China’s largest single source of clean electricity, contributing 13% in 2025. The share of wind and solar combined reached 22%, above the global and Asia average of 17%. Solar recorded another year of exponential growth, with 336 TWh of power generation, a 40% increase compared to 2024.

The biggest shift in China’s electricity generation in 2025 was an absolute decline in coal generation. Coal output decreased by 71 TWh, the first such drop since 2015. Fossil fuels provided 58% of China’s electricity in 2025, down from about 62% in 2024.

China could reach peak fossil fuel consumption by 2030, thanks to exponential renewables growth and electrification. In 2025, China’s fossil generation declined by 56 TWh (-0.9%), the first year without an increase since 2015. This represents a structural shift, and if current trends hold, China’s fossil fuel demand could begin falling soon, creating conditions for global fossil fuel demand to decline as well.

Coal mine methane in China

China is also the world’s largest coal mine methane (CMM) emitter, accounting for 76% of global CMM emissions in 2023. Despite this, independent estimates suggest actual emissions may be higher than officially reported figures. China has taken steps to address low concentration methane through its voluntary carbon market (CCER), which now credits mitigation of coal mine gas below 8% methane concentration. Addressing CMM would significantly reduce overall emissions from the power and steel sectors.

Anchor point: Data

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Explore China’s electricity data

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Coal Mine Methane Data Tracker

The latest coal mine methane emissions, projections, production data, and policy context by country, available freely and openly to accelerate global coal mine methane reduction efforts.

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Anchor point: Insights

Our work

Ember’s research in China focuses on two questions: what China’s clean energy transition means for the rest of the world, and how international experience can inform China’s next phase of progress. Through analysis of energy and economic data, policy developments and clean technology deployment, our work examines the drivers behind China’s rapid expansion of clean electricity and electrification. This helps draw lessons for other economies while identifying global insights that may help accelerate China’s transition.

Commentary on China’s energy transition

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China’s clean energy expansion is doing more than cutting emissions, it is strategically offloading fossil fuels from the development process. If any country had reason to remain on a fossil-based growth path, it would arguably be China. It is perhaps the most successful example of rapid industrialisation powered by fossil fuels. Yet the opposite is happening. By rapidly scaling wind and solar while electrifying transport, industry and buildings, China is rebasing its industrial economy on a clean foundation. This raises an important question for other countries: whether fossil fuels should remain the backbone of their future development.

Muyi Yang
‍Senior Energy Analyst

China’s decision to include low concentration coal mine methane within its voluntary carbon market is a meaningful step, making it one of the few countries to formally recognise CMM projects within a carbon crediting framework. The challenge is that uptake remains limited in practice, held back by high abatement costs and low credit revenues. A dedicated methodology, stronger carbon price support and streamlined measurement, reporting and verification could unlock the scale of action that is needed from the world’s largest coal mine methane emitter.