China outlines new decarbonisation strategy while keeping coal central to energy mix

BEIJING, March 5 — China has unveiled a new plan to reduce the carbon intensity of its economy by 17% during the current five-year policy cycle, outlining steps to cut emissions relative to economic growth while stopping short of committing to a phase-out of coal, according to official policy targets released on Thursday.

The plan aims to reduce carbon emissions per unit of gross domestic product while allowing economic expansion to continue. Analysts say the structure of the target means total emissions could still rise if economic growth remains strong.China, the world’s largest emitter of greenhouse gases, previously aimed to cut carbon intensity by 18% during the prior five-year policy period but achieved a reduction of about 12%, according to official figures.Carbon intensity targets outlinedUnder the new policy framework, authorities aim to lower carbon intensity by around 3.8% in 2026 as part of the broader five-year objective.Carbon intensity measures the amount of carbon dioxide emissions generated per unit of economic output. Governments often use the indicator to track progress in reducing the environmental impact of economic growth.Officials say the strategy is designed to support economic development while gradually lowering emissions through improvements in efficiency and energy use.However, because the metric is linked to economic output, total emissions could still increase if gross domestic product expands faster than the reduction in carbon intensity.Coal remains a major energy sourceThe policy also signals that coal will remain a central part of China’s energy system in the near term. Authorities said they would work toward reaching a peak in coal consumption within the next five years.The language differs from earlier policy statements that had referred to gradually phasing down coal use.Coal currently accounts for a significant share of China’s energy supply and plays a key role in electricity generation and industrial activity.Policy reflects balance between growth and climate goalsThe new targets highlight the balancing act faced by policymakers as they attempt to reduce emissions while sustaining economic growth in the world’s second-largest economy.China’s previous five-year carbon intensity target fell short of its official goal, underscoring the challenges associated with cutting emissions while maintaining industrial output and energy security.The latest plan signals continued efforts to improve energy efficiency and reduce emissions relative to economic activity, even as coal remains embedded in the country’s energy mix