China sees fastest emissions drop since Covid due to Middle East war

China witnessed the steepest decline in carbon dioxide emissions since the onset of the Covid-19 pandemic in the third quarter, according to a recent analysis by the Centre for Research on Energy and Clean Air (CREA). The Central Asian nation's emissions dropped by 3.1% between July and September, primarily due to disruptions in oil shipments resulting from the ongoing conflict in the Middle East.

The Strait of Hormuz, a critical chokepoint for global oil trade, experienced significant disruptions, leading to a 4% year-on-year decrease in oil consumption. Transport oil consumption, in particular, decreased by 9%, as reported by CREA, citing official figures and commercial data.

CREA co-founder and lead analyst Lauri Myllyvirta explained that the oil price shock is likely to trigger a rebound in consumption once prices stabilize. However, this development comes amidst China's accelerating shift towards electrification and away from oil. Despite China's rapid construction of new coal plants, coal use also fell by 3% year-on-year during the quarter.

Gao Yuhe, the Beijing-based project lead at Greenpeace East Asia, emphasized that the ongoing decline in coal power is a crucial factor in the further development of renewable energy sources. The country has been experiencing rapid growth in renewable installations, with coal's share in its energy mix steadily decreasing. China remains the world's largest emitter, accounting for over 30% of global greenhouse gas emissions.

The nation's leaders have pledged to intensify efforts to reduce CO2 emissions and accelerate the green transition, with an ambitious goal of achieving carbon neutrality by 2060.