As War Roils Energy Markets, China Sees Its Emissions Drop

China’s carbon dioxide emissions fell by 3.1 per cent between July and September, the largest quarterly drop since the 2022 pandemic lockdowns. The decline reflects both the rapid growth of low-carbon power and changing energy use amid fuel price rises linked to the Iran war.

Oil use fell 4 per cent year on year as electric vehicles gained ground, while coal emissions dropped 3 per cent as new wind, solar and nuclear generation outpaced rising electricity demand. Steel and concrete emissions also fell during a construction slowdown. China is still building coal plants, and it lacks enough grid capacity to deliver all its renewable electricity: in the first half of the year, roughly a quarter of wind and solar output was rejected.