Climate change is one of the key issues on the global agenda. China is a major emitter of greenhouse gases, which is why its climate action has received particular attention. Our team went on to find out what results the eastern neighbour can boast about its green agenda.

The study focuses on government programmes, renewable energy initiatives and efforts by the country's largest companies to reduce their carbon footprint. Progress towards environmental goals is evidenced by a growing share of carbon-free energy and significant investment in green infrastructure.

Key indicators of China's energy development

China, which has become a symbol of industrial progress, is also one of the world's biggest polluters. The country is responsible for nearly one-third of the world's carbon dioxide emissions, and these emissions continue to grow. China's coal-fuelled energy sector produces the vast majority of these emissions. But despite these dismal statistics, China is moving steadily towards a green future, transforming its energy system and paving the way towards carbon neutrality.

In recent years, the PRC has made significant steps in the development of renewable energy sources. Although energy consumption from fossil sources continues to grow, their share in the country's total energy mix is gradually declining. New renewable energy capacity is growing at a faster rate than fossil sources. This symbolises not just a technological shift, but a change in the very approach to energy.

Moreover, the coal-fired power industry, which has been the mainstay of China's economy for many years, is not stagnating either. Older, most environmentally harmful plants are being closed down, giving way to new, more efficient and cleaner technologies.

In addition, China is actively implementing initiatives and programmes aimed at the green agenda. The country has set ambitious goals: to reach peak carbon emissions by 2030 and carbon neutrality by 2060.

By 2025, China plans to significantly reduce its energy consumption and carbon dioxide emissions and increase the share of non-fossil energy. By 2030, it plans to stabilise emissions and significantly reduce its dependency on fossil fuels. By 2060, China aims to fully switch to renewable energy sources.

Major efforts are focused on developing green energy, improving industrial efficiency and promoting green transport. One of the key instruments is an emissions trading system that covers a significant portion of the country's carbon emissions. Along with this, green financial instruments supporting sustainable development are being actively developed.

Company actions to achieve carbon neutrality

China's largest energy and industrial companies have actively embraced the green agenda in an effort to reduce their carbon footprint and improve their ESG performance. Leading energy giants such as China Huaneng Group and State Power Investment Company (SPIC) are actively developing renewable energy, although they are still lagging behind compared to global leaders.

Coal mining companies show different results: Shenhua Energy Company has significantly reduced its carbon emissions, while Yanzhou Coal Mining Company has recorded an increase. China Coal Energy Company is actively supporting government goals by implementing environmentally friendly projects.

Industrial giants such as China Baowu Steel Group and Aluminum Corporation of China are developing innovative low-carbon technologies, including the use of hydrogen and renewable energy. HBIS Group is investing heavily in energy conservation and emission reduction, creating the cleanest steel mill in the world.

Government initiatives and programmes focused on the green agenda

China is actively developing green finance instruments and launching programmes to support the transition to carbon neutrality. A national emissions trading system was introduced in 2021, covering about 40% of the country's total emissions. The country is also developing programmes to refinance credits for carbon reduction projects and plans to expand the emissions trading system to other sectors of the economy by 2025.

Thus, China is actively moving towards carbon neutrality, combining government initiatives with the actions of major companies. The country, which leads the world in CO2 emissions, is focusing on renewable energy, industrial modernisation and the development of green technologies. With ambitious goals and practical steps, China aims not only to reduce its own emissions, but also to become a global leader in environmental transformation, paving the way for a sustainable future.