China Doubles Down on Clean Energy Even as Coal Keeps Growing

China's renewable energy strategy is proving to be a double-edged sword. On one hand, the country has been rapidly expanding its solar and wind capacity, aiming to install 53% more by 2030 compared to 2025 levels. Currently, China holds one-third of the world's solar power capacity and a quarter of its wind power capacity. In 2024 alone, China added 360 GW of wind and solar power, contributing over half of the global additions.

However, despite its ambitious renewable energy plans, China also plans to continue expanding its coal production. It is the world's largest energy consumer, greenhouse gas emitter, and coal producer. In 2025, China contributed 78% of global coal power capacity that came online and is the biggest consumer and producer of coal worldwide.

While China's renewable energy growth is impressive, Qi Qin from CREA warns that the country's heavy reliance on coal could undermine its clean energy goals. The government has set a target of 1.8 billion tons of coal equivalent by 2030, a stark contrast to the 1.18 billion tce produced in 2025. China aims to integrate coal with renewable energy through storage technologies to make intermittent renewables more reliable.

China's strategy also includes expanding international cooperation on renewable energy, adopting green technologies, standards, and certification systems globally, and piloting renewables megabases to transmit wholly renewable energy. However, the plan acknowledges the continued expansion of the coal sector to ensure stability in the power sector, leading to concerns about the country's emissions reduction targets in the long run.