• 80% Cut: China reduced new coal power plant permits by nearly 80% in H1 2024.
• Renewables Surpass Coal: Wind and solar capacity now exceed coal capacity for the first time.
• Uncertain Future: The long-term implications of this slowdown in coal are still unclear.

China, the world’s largest builder of coal-fired power stations, made a significant shift in the first half of 2024, reducing new coal power plant permits by nearly 80%, according to a report by Greenpeace East Asia. This cut could signal a potential turning point in China’s energy strategy, though the future remains uncertain.

For the first time, China’s combined wind and solar capacity (11.8 terawatts) has surpassed its coal capacity (11.7 terawatts), making up 84.2% of all new grid-connected capacity. Despite this, China commissioned 14 new coal plants totaling 10.3 gigawatts (GW) of power, a 79.3% decrease from the same period in 2023.

Gao Yuhe, a project lead at Greenpeace East Asia, commented on the trend: “Wind and solar expansion has been strong as coal building slows, but it’s unclear what the slowdown means for the future of coal.”

“Are Chinese provinces slowing down coal approvals because they’ve already approved so many coal projects during this five-year plan period? Or are these the last gasps of coal power in an energy transition that has seen coal become increasingly impractical? Only time can tell,” Gao added.

Analysts at the Helsinki-based Centre for Research on Energy and Clean Air suggested that China’s carbon emissions might have peaked in 2023, noting a 1% year-on-year drop in emissions in Q2 2024, the first quarterly decline since the COVID-19 pandemic.

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China’s government maintains that coal plants are still necessary for grid stability, especially during peak demand periods, such as the record-breaking heatwaves in July. However, Greenpeace urges increased investment in grid connectivity to maximize the output from the country’s growing fleet of wind and solar plants.

The National Development and Reform Commission did not immediately respond to requests for comment. The future of China’s coal dependency remains a critical question as the nation navigates its energy transition.