Jakarta, INTI - China is entering a new phase in its efforts to achieve its climate targets, in which successful emissions reductions depend heavily on decarbonizing high-emitting industrial sectors.
Having made significant progress in clean energy development, the country now needs to focus on sectors that are difficult to electrify to accelerate the transition to a green economy.
A recent report from Agora Energy China and Agora Energiewende stated that China has successfully overcome key challenges in expanding the use of renewable energy.
“China has largely solved the challenge of scaling renewables,” said Kevin Tu, managing director of Agora Energy China. “The priority now is to ensure that clean energy can transform industry, strengthen energy security, and deliver sustained emissions reductions.”
The government’s 15th five-year plan for energy development due for release later this year “will be the first real test of this transition at scale,” he said.
This momentum comes amid a slowdown in China's carbon emissions growth by just 0.5% in 2025, while coal-fired power plant use has declined for the first time in ten years.
Heavy Industry Decarbonization
However, emissions growth is now increasingly concentrated in heavy industrial sectors, such as steel, cement, and chemicals, which together account for around 14% of total national emissions.
To reduce emissions from these sectors, the use of renewable hydrogen, the electrification of heating processes, and the use of low-carbon materials, supported by a clean electricity supply and a more flexible electricity system, are required.
On the other hand, China's success in developing renewable energy still faces challenges. While solar and wind more than doubled over five years to about 22% of total electricity generation in 2025, utilization fell to less than 95%. This situation indicates an imbalance between increasing generating capacity and the ability of the electricity grid to absorb the additional energy supply.
Conclusion
China focuses on reducing carbon emissions from heavy industries such as steel, cement, and chemicals, after successfully accelerating the development of renewable energy. According to reports by Agora Energy China and Agora Energiewende, these sectors are now the main sources of emissions growth. To decarbonize industry, China needs to expand the use of renewable hydrogen, electrify industrial processes, and use low-carbon materials, supported by a clean electricity supply and a more flexible power system.
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