China reliance on coal fired electricity has declined to a historic low with coal accounting for 49.7 per cent of the country’s total power generation in the first half of 2026. The share fell below 50 per cent for the first time, highlighting the rapid expansion of renewable energy and the country’s ongoing shift towards a lower carbon energy system.
The figures were highlighted in the Global Energy Transition Report (2026) released by the China Enterprise Reform and Development Society (CERDS). The report also pointed to a gradual slowdown in the growth of global carbon emissions, despite rising electricity demand and continuing geopolitical tensions.
Global energy related carbon dioxide emissions increased by 0.4 per cent in 2025, reaching 38.4 billion tonnes. This was the slowest annual increase since 2021, according to the report.
China recorded a 0.5 per cent decline in total carbon emissions while emissions in the United States rose by 2.4 per cent, making it the largest contributor to global emissions growth during the period.
Renewable energy also strengthened its position in the global electricity mix. Worldwide installed renewable capacity increased by 15.5 per cent in 2025 to reach 5,149 gigawatts.
Renewables generated 33.8 per cent of global electricity, overtaking coal fired power, which accounted for 33 per cent. It marked the first time in a century that renewable sources surpassed coal in global electricity generation.
China’s Clean Energy Expansion Drives the Transition
Energy experts say China’s progress has been supported by long term decarbonisation policies, investment in energy infrastructure and a large domestic manufacturing network that has helped reduce the cost of renewable technologies.
Sun Chuanwang, a professor at Xiamen University’s School of Economics said continued policy support, energy efficiency improvements and lower renewable technology costs could further reduce China’s dependence on coal.
He also noted that the country’s strong domestic coal supply and resilient energy system provide greater flexibility during the transition helping it avoid some of the energy security pressures that have prompted renewed coal use in parts of Europe.
Energy Investment Expected to Reach $3.4 Trillion Globally
Global energy investment is projected to reach $3.4 trillion in 2026 an increase of 5 per cent from the previous year.
Around $2.2 trillion is expected to be directed towards electricity grids, energy storage, low emission fuels, nuclear power, renewable energy, energy efficiency and electrification.
China’s energy investment is forecast to reach approximately $940 billion, maintaining its position as the world’s largest energy investor.
The country has pledged to peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060.
Separate analysis by the Helsinki based Centre for Research on Energy and Clean Air (CREA) reported that China’s carbon dioxide emissions from energy and industry fell by 3.1 per cent year on year in the third quarter of 2026. This was the largest quarterly decline since the COVID-19 pandemic.
Coal consumption decreased by 3.3 per cent, while improved utilisation of wind and solar power and lower electricity demand amid mild weather also contributed to the decline.
The analysis found that China rolling 12 month emissions total had remained flat or declined since March 2024 a trend lasting more than two years. Overall emissions fell by 0.5 per cent during the first three quarters of 2026.
International Energy Agency Executive Director Fatih Birol has described China’s achievements in clean energy technologies as an important driver of the global energy transition.
He said the global energy crisis was reshaping energy markets and encouraging countries to adopt renewable power and electric vehicles to reduce dependence on conventional energy sources.
The latest figures underline the growing role of renewable energy in China’s electricity system. However, the country’s continued dependence on coal and the challenges of meeting rising power demand remain important factors in determining how quickly its energy transition progresses.