Energy-related emissions in China were relatively flat between 2021 and 2022, decreasing by 0.2% or 23 Mt to around 12.1 Gt. Emissions from energy combustion alone grew by 88 Mt, entirely due to increased use of coal, but this was more than offset by declines in emissions from industrial processes. The overall yearly decline was the first since structural reforms drove emissions lower in 2015.

While China significantly ramped up domestic coal production and coal power capacity additions last year, actual coal consumption did not fully keep pace. Tempered by a large increase in solar PV and wind generation, coal accounted for around three-fifths of the fuel mix in electricity generation. Total electricity demand grew much slower than the average seen over the last decade. As such, emissions from coal-fired power increased by around 3%, in part due to the ramp-up of coal power plants during heat waves, as well as to increasing reliance on electricity or district heating fuelled by coal.

Industry sector emissions declined, but the effects of China’s crackdown on debt-financed property and the ongoing real estate slump were not fully reflected in 2022 industry emissions. Construction new starts were down by around 40% year-on-year, while the production of steel and cement were just 2% and 10% lower than in 2021, respectively. As a result, China’s industry sector emitted 161 Mt less than the year before, with a large share of this decline from process emissions. China’s unprecedentedly large year-on-year decline pulled down global industry emissions.

In contrast to the global growth in transport sector emissions, China’s transport emissions registered a 3.1% decrease in 2022. Covid-19 measures were strongly reinforced in comparison to 2021, including total lockdowns in major cities and restrictions on crossing prefecture or province boundaries. At the same time, electric car sales reached 6 million in 2022, preventing further emissions from diesel and gasoline cars.