China's Coal Permit Cuts: A Sign of Real Energy Transition?

China, the world's top builder of coal-fired power stations, significantly cut new coal plant permits by nearly 80% in early 2024. A Greenpeace East Asia report highlights this shift and the rise of wind and solar energy exceeding coal capacity. Time will reveal if this marks a true energy transition.

China, historically the largest builder of coal-fired power stations, has slashed the number of permits for new coal plants by nearly 80% in the first half of 2024, according to a recent Greenpeace East Asia report. This significant reduction raises questions about a potential turning point in China's energy policy.

The report, founded on fresh project approval data, also observed that China's combined wind and solar capacity reached 11.8 terawatts (TW), surpassing coal's 11.7TW for the first time. Wind and solar accounted for 84.2% of all new grid-connected capacity, despite China commissioning 14 new coal plants totaling 10.3 gigawatts (GW) - a 79.3% drop from the same period in the previous year.

Gao Yuhe, the lead of Greenpeace East Asia projects, noted the robust growth of wind and solar energy amid the slowdown in coal power construction. Uncertainty surrounds whether this trend signifies a true energy transition or just a temporary halt. Meanwhile, Greenpeace advocates for improved grid connectivity to enhance the output from China’s vast wind and solar infrastructure. Analysts suggest that China's carbon emissions may have peaked in 2023, highlighting a 1% reduction in emissions during the second quarter of 2024.