Why China is Still Building New Coal: Examining the rationale of China’s long-term energy pathway

March 2, 2026

China is simultaneously expanding coal capacity and delivering the world’s largest buildout of wind and solar power. This dual trend raises a critical question: does continued coal construction undermine the credibility of China’s long-term climate commitments?

ARE’s latest report provides a system-level assessment of how China’s power sector is expected to evolve through 2060. The analysis shows coal capacity peaking by 2030 and steadily declining thereafter, supported by carbon-capture technology retrofits. Over the same period, electricity demand is projected to double, with wind and solar supplying more than two-thirds of generation, backed by battery storage, pumped hydro, nuclear, and hydropower.

Understanding these dynamics is essential for evaluating China’s transition pathway and its implications for global climate outcomes. The report offers a detailed view of how coal, renewables, and emerging technologies will interact as China builds a more resilient and decarbonised power system.

Why China is Still Building New Coal: Examining the rationale of China’s long-term energy pathway

Why China is Still Building New Coal: Examining the rationale of China’s long-term energy pathway

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Why China is Still Building New Coal: Examining the rationale of China’s long-term energy pathway

Why China is Still Building New Coal: Examining the rationale of China’s long-term energy pathway

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Energy Transition Portal

Protein Transition Portal