In September 2020, China announced that it would aim to peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060. This marked a major shift in environmental governance. Earlier policies had focused mainly on controlling pollutants such as sulphur dioxide, wastewater, and PM2.5. Carbon neutrality required something broader: restructuring the energy system itself.

The challenge was especially significant because China still relied heavily on coal for electricity, heating, and industrial production. Reaching the new climate targets therefore meant expanding renewable energy, improving energy efficiency, electrifying transport and industry, strengthening power grids, and reducing the carbon intensity of economic growth.

At the same time, energy security remained a central concern. Renewable generation was growing rapidly, but the power system still needed reliable electricity during periods of high demand or weak wind and solar output. Policy documents therefore increasingly paired the goal of a clean, low-carbon energy system with the need for it to remain safe and reliable.

This tension became especially visible in 2021, when some local governments moved aggressively to meet energy-consumption and emissions targets while China was also experiencing tight coal supplies, high coal prices, and strong industrial electricity demand. Central authorities subsequently warned against “campaign-style carbon reduction” and stressed the principle of “build the new before breaking the old”, signalling that decarbonisation could not come at the expense of basic energy security or economic stability.