China Slashes Electricity Generation Emissions to Record

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China Slashes Electricity Generation Emissions to Record Levels

The first half of the year has seen utilities in China decrease their emissions from electricity production to new lows as clean power generation continues to increase. Figures from electricitymaps.com show that for every kilowatt hour of electricity generated, CO2 emissions averaged 492g.

This is quite a decrease from the 514g in emissions per kilowatt hour of electricity produced in the same period last year and the first ever figure recorded below 500 grams.

The 23% increase in clean power generation between January and June of last year is said to be the primary driver behind the decrease in emissions as more clean energy allowed power companies to decrease output from gas and coal powered plants. In comparison to 2024, total power generated from coal power plants reduced by 4%.

While 75% of power generated in China still comes from fossil fuel sources, the growth of clean energy supply has begun surpassing fossil fuel generated power. According to the London Stock Exchange Group, total clean power output in China during H1 of this year was 200% more than the clean power produced during the H1 of 2019.

Figures from Ember, an energy think tank, also show that fossil fuel emissions from electricity production between January and May totaled 2.2 billion metric tons of carbon dioxide. This figure is over 60 million tons less than the same period last year, indicating that significant progress is being made by Beijing to reduce pollution in the energy sector.

However, the persistent economic slowdown resulting from a prolonged real estate slump, coupled with the unpredictability of tariffs imposed by the U.S. on Chinese exports, continues to affect energy demand and overall emissions in the East Asian country.

The last few years have seen the rate of construction activity in China decline significantly due to a debt crisis among property developers, which has consequently suppressed demand for energy-heavy products like cement, piping, glass, and structural steel.

More recently, the new tariffs imposed on Chinese goods by President Donald Trump this year have dampened demand for goods made in China and curtailed production across various manufactured sectors. Reduced activity on building sites and factory floors has, in turn, lowered the total energy requirements of these sectors and enabled power producers to scale back output accordingly.

If a recovery takes hold in the construction and manufacturing industries in the future, China’s overall energy demand will rise in tandem, likely triggering a rebound in generation from carbon-intensive fossil fuels.

However, if the Chinese economy continues to be restrained by property sector debt and trade tariff concerns, the nation’s reliance on fossil fuels will stay muted, potentially paving the way for further declines in emissions from the power sector.

As clean energy generations ramps up, the demand for platinum group metals like rhodium that are critical to the energy generation process could cause the demand for these metals to accelerate. Firms like Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) that specialize in the extraction of these critical metals could see investor interest grow.

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