China's Renewed Push for Energy Transition

China's energy regulator announced continued reforms aiming to phase out fossil fuels and expand green electricity trading. Despite significant investments, challenges remain in cutting carbon intensity. China's renewable energy installations have surged, but meeting ambitious future targets requires new strategies and measures.

China will persist in phasing out fossil fuels and reforming its electricity system, the energy regulator declared on Thursday. The National Energy Administration head highlighted accomplishments and reiterated existing plans for the country's energy transition, focusing on green electricity trading and replacing fossil fuels with renewable sources.

At a State Council press conference, Zhang Jianhua emphasized China's substantial $676 billion investment in energy transition last year, as reported by BloombergNEF. Despite leading globally in renewable energy transition, China's power system remains heavily coal-dependent.

Responding to queries about the potential for China's carbon emissions to peak before the 2030 target, Song Wen reassured that the dual carbon target remains unchanged. While achieving 1,200 gigawatts of wind and solar power early, China's government is cautious about setting more ambitious goals without evaluating national conditions.

New-energy department director Li Changjun hinted at new goals based on the country's evolving needs. However, analysts note that China lags in reducing carbon intensity and must urgently cut absolute emissions to meet its targets. The white paper also advocates for advancing energy storage technology and fostering global green energy cooperation.

A key highlight is the Karot hydropower station in Pakistan, part of the Belt and Road Initiative, despite recent militant threats. The white paper underscores China's commitment to creating a global community with shared green energy goals.

(With inputs from agencies.)