What's Happening?
China has seen a significant decline in new coal power approvals, with only 41.77 gigawatts (GW) approved in the first three quarters of 2025. This marks a continued decrease from previous years, as the country
shifts focus towards renewable energy. Greenpeace East Asia reports that if the current trend continues, 2025 will be the second-lowest year for coal power approvals in the 2021-2025 period. The decline is attributed to policy changes aimed at capping coal usage and boosting renewable energy sources. Despite the slowdown in coal approvals, large-scale units still dominate the newly permitted projects, accounting for over 90% of the capacity. The investment in coal projects remains heavily state-capitalized, with central and local state-owned enterprises accounting for the majority of the investment.
Why It's Important?
The decline in coal power approvals reflects China's strategic shift towards renewable energy, which is crucial for reducing carbon emissions and combating climate change. This transition is significant as China is one of the world's largest carbon emitters, and its energy policies have global implications. The focus on renewables aligns with international efforts to reduce reliance on fossil fuels and promote sustainable energy solutions. The reduction in coal power projects also indicates a potential decrease in air pollution and environmental degradation, benefiting public health and ecological systems. However, the continued reliance on large-scale coal units suggests that coal will remain a part of China's energy mix, posing challenges to achieving long-term sustainability goals.
