China's CO2 Emissions Drop in July
China's CO2 emissions fell in July due to a decrease in power generation from coal and gas, alongside reduced coal, cement, and crude steel output.
China's CO2 emissions dropped in July, driven by a 3.5% decrease in power generation from coal and gas combined with falling coal, cement, and crude steel output.
Key Findings
China's CO2 emissions dropped in July, driven by a 3.5% decrease in power generation from coal and gas combined with falling coal, cement, and crude steel output. Coal mine output has now seen a full year without year-on-year growth.
| Category | July 2026 | July 2025 |
|---|---|---|
| Coal power generation | -2.5% | 6 consecutive months of year-on-year growth |
| Power generation from coal and gas | -3.5% | 2% year-to-date growth |
| Wind capacity additions | 38.6 GW | 25% drop from last year |
| Solar power capacity additions | 72.1 GW | 66% drop from last year |
Coal power generation dropped 2.5% after six consecutive months of year-on-year growth. Power generation from coal and gas is still up 2% year-to-date, due to exceptionally poor wind conditions, increased wind and solar curtailment, and relatively rapid power demand growth in the first half of the year.
Coal Generation Fell for the First Time in 2026
Power generation by large-scale power producers fell 0.1% year-on-year in July, while total power generation is estimated to have increased by 0.5%. Coal power generation fell 2.5% year-on-year, following six consecutive months of increase. This followed China's coal power generation falling in 2025 for the first time in a decade.
| Category | July 2026 | July 2025 |
|---|---|---|
| Coal power generation | -2.5% | 6 consecutive months of year-on-year growth |
| Gas power generation | -13.9% | |
| Solar generation | 10.4% | |
| Wind generation | -4.5% | |
| Hydropower and nuclear power generation | 7% and 6.7% |
Coal power generation fell 2.5% year-on-year, following six consecutive months of increase. This followed China's coal power generation falling in 2025 for the first time in a decade.
Coal Imports Rise as Oil and Gas Imports Fall
China's coal imports increased 20% year-on-year in July 2026, with import volumes for the first seven months up 4.3%. China's crude oil imports fell 24.3% year-on-year, reaching a nine-year low for the month of July, showing the continued impact of disruptions to shipments through the Strait of Hormuz. For the first seven months as a whole, oil import volumes declined 13.2% year-on-year.
| Category | July 2026 | July 2025 |
|---|---|---|
| Coal imports | 20% year-on-year increase | |
| Crude oil imports | -24.3% year-on-year | 9-year low for the month of July |
| Natural gas imports | -0.9% year-on-year |
China's coal imports increased 20% year-on-year in July 2026, with import volumes for the first seven months up 4.3%. China's crude oil imports fell 24.3% year-on-year, reaching a nine-year low for the month of July, showing the continued impact of disruptions to shipments through the Strait of Hormuz.
Carbon-Intensive Industrial Output Continues to Contract
Crude steel output fell 3.6% year-on-year in July, declining by 3.1% over the year thus far. Output of steel products fell by 4.1% compared to a year earlier. Pig iron production also declined, falling 4.5% year-on-year.
| Category | July 2026 | July 2025 |
|---|---|---|
| Crude steel output | -3.6% year-on-year | |
| Cement output | -11.6% year-on-year | |
| Chemical fibre output | -1.7% year-on-year |
Crude steel output fell 3.6% year-on-year in July, declining by 3.1% over the year thus far. Output of steel products fell by 4.1% compared to a year earlier. Pig iron production also declined, falling 4.5% year-on-year.
Wind Capacity Additions Reach New Record for June
In the first six months of 2026, China added:
| Category | July 2026 | July 2025 |
|---|---|---|
| Solar power capacity additions | 72.1 GW | 66% drop from last year |
| Wind power capacity additions | 38.6 GW | 25% drop from last year |
| Thermal power capacity additions | 38.4 GW | 49% increase from last year |
| Hydro power capacity additions | 6 GW | 53% increase from last year |
| Nuclear power capacity additions | 3.6 GW |
In the first six months of 2026, China added more wind capacity than was added in any full calendar year before 2025. In June 2026 alone, China added 13.6 GW of wind capacity, a record high for the month of June.
