China's CO2 Emissions Fall in First Half of 2025, But Challenges Remain

China's carbon dioxide emissions fell by 1% year-on-year in the first half of 2025, driven by strong growth in clean energy, extending a decline that began in March 2024. The power sector, a major emissions source, saw a 3% drop in CO2 output, with solar power growth offsetting increased electricity demand. However, rapid expansion in the coal-to-chemicals industry added to emissions, posing a challenge to China's carbon peaking goals. Despite the emissions decrease, China is likely to miss several climate targets, highlighting the need for more ambitious goals in its upcoming Nationally Determined Contribution and 15th Five-Year Plan.
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