With a cumulative score of 2.4, Mainland China ranks number 1 among emerging markets and number 11 in the global ranking.
- Emerging markets
2.50 / 5
2.54 / 5
1.98 / 5
Net-zero goal and strategy
China has the goals to peak its carbon emissions before 2030 and reach net-zero before 2060.
Nationally Determined Contributions (NDC)
The government updated its NDC in December 2020 with new targets, including a 65% decline in GDP carbon intensity by 2030, compared with 2005. This is a minor adjustment of its 2017 target of a 60-65% decline.
Fossil fuel phase-out policy
President Xi Jinping announced in April 2021 that the country will start phasing down coal consumption from 2026-30. No explicit policy directive has been announced.
China launched its renewables portfolio standards in 2020, mandating power consumers and retailers to source a set share of clean energy. Retail liberalization now allows wind and solar assets in at least 25 of China’s 31 provinces to sell power directly to end users. The sale of coal-fired power, which still dominates the power system, has been liberalized in most of the country.
Power prices and costs
In October 2020, China imposed caps on the lifetime ‘hours of generation’ for which subsidy will be paid for all existing and new renewables projects. BNEF categorizes it as a retroactive cut on subsidies, as it alters the earlier practice that subsidized the full actual generation.
China’s power market is undergoing a series of changes that will impact both generation and retail. For renewable energy, generous subsidies that spurred rapid growth are coming to an end. It is still unclear whether policy makers will extend feed-in tariffs or deploy auctions for future projects. So far, decisions are made on an annual and province-by-province basis.
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
China is a global leader in electric vehicles. It currently has a target for EVs to account for 20% of passenger vehicle sales by 2025 and build 4.8 million chargers by 2020. The government provides upfront purchase grants for EVs, although the level of support has been decreasing, and exempts EVs from purchase taxes. China uses fuel-economy standards to mandate fuel consumption limits for passenger cars. The first set of standards were issued in 2004.
Fuel economy standards
Does the country have a fuel economy standard in place?
In the building sector, China's central government encourages heating supplied using geothermal, biomass and solar. National building standards mandate energy efficiency levels for residential and public buildings as well as building heat energy consumption.
Together with local governments, it subsidizes the adoption of low-carbon heating. Most financial incentives for low carbon building improvements differ by region. In some, geothermal projects may receive a 50% rebate from the government. The country does not have a boiler scrappage scheme or incentive in place. Still, it does have broad policies encouraging boiler retrofits, emissions controls and energy efficiency improvements.
Energy performance standards
Are there minimum energy performance standards for buildings?
Energy efficiency plan
Does the country have a national energy efficiency plan?