Coal in China

The People's Republic of China is the largest producer and consumer of coal and coal power in the world. China produces approximately 4.8 billion tons of coal per year, over half of the global total.^[1]

In 2024, coal accounted for approximately 59% of China’s electricity generation, with wind, solar, hydro, and nuclear contributing most of the remainder. Specifically, wind and solar generated 10% and 9% of total electricity respectively, followed by hydropower (13%) and nuclear power (4%).^[2]

In 2024, China began construction on approximately 94.5 gigawatts (GW) of new coal-fired power capacity, marking the highest annual addition since 2015. Analysts generally frame new coal plants as backup capacity intended to stabilize the grid and ensure supply reliability as intermittent renewables like wind and solar become more dominant.^[2] However, a contrasting view highlights that coal mining companies are playing a dominant role in financing these new coal power projects. According to the Centre for Research on Energy and Clean Air, more than 75% of newly approved coal power capacity in 2024 was backed by coal mining companies or energy groups with coal operations, artificially inflating coal demand despite weak market fundamentals and undermining central government policies aimed at curbing coal consumption.^[3]

The long-term impact of China's energy transition policies is projected to reduce coal. According to DNV’s 2024 China Energy Transition Outlook, renewable energy is expected to supply 88% of electricity generation by 2050, with wind and solar each contributing around 38%, alongside smaller shares from hydropower and nuclear energy.^[4]

In September 2021, China pledged to end financing for overseas coal power plants, leading to the cancellation of at least 15 projects by April 2022.^[5][6]