Overview of China’s energy transition 2022

The fossil energy crisis, coupled with the continuing COVID-19 pandemic, is accelerating major disruptions to traditional energy supplies, transport, and consumption. As the world’s largest producer, importer and consumer of energy, China has attracted increased international attention focusing on the domestic energy system and its future. 

The Chinese energy system is undergoing dramatic shifts, with a top-down mandate to transition from a carbon-intensive economy towards a peaking of emissions by 2030 and carbon neutrality by 2060. Notwithstanding growing concerns about energy security, China is expected to uphold this climate commitment, which was announced by President Xi Jinping in September 2020. As with the European Union (EU), although a short-term setback to its clean energy transition may occur, China is nevertheless doubling down on efforts to transform its fossil fuel-dominated economy towards a renewables-based system.

We have observed a growing interest in the Chinese energy system, which led us to draft an Overview of China’s Energy Transition 2022. The purpose of this publication is to deliver facts and background information, rather than address specific policy challenges or delve into possible solutions. Instead, we present fundamental data that should be helpful to gain a better understanding of the Chinese energy system.

This publication introduces the Chinese natural gas industry, with a focus on supply, imports, consumption, market reform, and the ongoing transformation of the sector. This first part of the publication will be followed by additional chapters dedicated to oil, coal, electricity and carbon-dioxide emissions from fuel combustion, among other topics.

A caveat: We strive to find and analyse available data. However, we recognise that errors occur, and statistics might not always be accurate.