Construction of New Coal Plants in 2024 Threatens China’s Green Energy Investments and Climate Commitments

China’s recent surge in the construction of coal-fired power plants has raised alarms about the country’s climate goals and its progress in green energy investment. Despite China’s commitment to peak carbon emissions before 2030 and achieve carbon neutrality by 2060, the construction of new coal plants in 2024 threatens to undermine these objectives.

In 2024, coal power development in China saw an unprecedented increase, with 94.5 gigawatts (GW) of new coal-fired capacity under construction, the highest in a decade. The country also approved 66.7 GW of new coal plants, significantly outpacing renewable energy additions. These developments have brought China’s share of global coal plant construction to 93%, raising concerns about the continued reliance on coal.

China remains the world’s largest producer and consumer of coal, with the sector responsible for 60% of the country’s electricity generation. While the country has been expanding its renewable energy capacity at an impressive rate—adding 356 GW of wind and solar power in 2024—the rapid growth of coal power complicates the country’s shift towards a renewable energy-driven power sector. This dual expansion creates a challenge in transitioning to greener energy sources while reducing emissions.

The recent coal plant boom runs counter to President Xi Jinping’s pledge to limit coal consumption during China’s 14th five-year plan (2021-2025) and phase it down by the 15th five-year plan (2026-2030). The surge in coal plant approvals is largely driven by industrial interests, especially coal mining and energy groups, which seek to secure growth before China’s carbon reduction targets take effect.

Despite this setback, China’s investment in renewable energy continues to make significant strides, helping to slow the rise of emissions. In total, China now boasts around 1,400 GW of installed renewable energy capacity. This expansion of clean energy is expected to help meet the country’s growing electricity demands and contribute to a plateau in emissions growth.

However, the expansion of coal capacity risks locking in a dependence on fossil fuels that could slow decarbonisation efforts. According to experts, the key issue is not only the construction of new plants but the continued operation of existing coal-fired power stations. The utilisation rate of these plants—how often they are used to generate electricity—will determine the level of emissions. The need to recoup investments in these plants could result in prolonged coal usage, undermining efforts to reduce carbon emissions.

Furthermore, long-term contracts for coal power purchases could restrict the growth of renewable energy by discouraging electricity buyers from prioritising clean energy, particularly if penalties are incurred for not meeting coal-based contract obligations.

Despite the rise in coal power, experts remain hopeful that China’s renewable energy boom will lead to substantial emissions cuts by 2035. China’s growing role in solar and wind energy development positions it as a leader in green technologies, and its climate commitments remain central to global discussions on climate action.