China's drive to decarbonization is gaining traction

China's drive toward decarbonization goals is gaining momentum through the support of accelerating policy and ongoing energy structure optimizations, according to a report by the China Center for International Economic Exchanges on Wednesday.

It said the nation looks to establish a new energy system in order to effectively tackle challenges arising from domestic and international green transitions.

The report highlighted China's progress in decarbonization, saying renewable energy installations have achieved a historic milestone by surpassing coal-fired power this year, with wind and solar power as key contributors.

The latest data from the National Energy Administration showed that in 2023, renewable energy installations reached 1.45 billion kilowatts as of mid-December, accounting for over half of the country's total and surpassing thermal power installations for the first time.

It said energy storage is experiencing explosive growth, and hydrogen is emerging as an increasingly important role in propelling deep decarbonization for the industrial sector and supporting long-term energy storage.

Despite positive progress, China still faces challenges in decarbonization, including difficulties in consuming power generated from new energy sources, inadequacies in carbon footprint measurement systems, and heightened constraints from international carbon regulations, according to the report.

Looking ahead, a comprehensive strategy is needed to balance high-quality development and high-level energy security. The report said that accelerating the construction of a new energy system is crucial to ensure energy supply while promoting new energy development.