China's Coal Conundrum: Balancing Growth and Green Goals

China is accelerating its coal power construction, adding 94.5 gigawatts in 2024, the largest since 2015, complicating its transition away from fossil fuels. Despite record renewable growth, coal remains dominant due to power shortages. This could hinder global climate efforts as nations set ambitious 2035 emission targets.

China has embarked on its largest coal power expansion since 2015, constructing 94.5 gigawatts in 2024. This rapid build-out poses a challenge to China's commitment to reduce reliance on fossil fuels, according to a report released on Thursday by the Centre for Research on Energy and Clean Air (CREA).

With the nation grappling with energy security concerns and industry interests pushing coal projects, the transition to renewable energy is facing hurdles despite a record surge in renewable capacity last year. The report warns that if coal maintains its dominance, China's emission reduction targets and global climate efforts could be compromised.

Despite commissioning 356 GW of wind and solar power last year, renewable energy is struggling for grid space as utilisation rates decline. As China aims to peak its emissions by 2030, the rush to secure coal projects ahead of new restrictions indicates a complex balancing act between growth and sustainability.