China’s carbon emissions rise again as more clean power is wasted

The economic powerhouse burned more coal and gas in the first quarter of 2026, despite record wind and solar build-out

China's carbon emissions bounced back up in early 2026 as “inflexible” grid management caused the country to waste vast quantities of clean power and burn more fossil fuels instead, new analysis shows.

After recording a first full-year decline in 2025, China's carbon dioxide (CO2) emissions from energy and industry grew by 2% in the first quarter of 2026, according to analysis by the Centre for Research on Energy and Clean Air (CREA) for Carbon Brief.

China burned more coal and gas to generate electricity than in the same period a year earlier, despite building record wind and solar capacity. Instead of being integrated into the network and used, clean power equivalent to more than France's entire electricity output for the quarter was discarded.

Coal power plants protected
Lauri Myllyvirta, CREA's lead analyst, said the paradox was primarily caused by China's inflexible operation of coal and gas power plants, which supply electricity through long-term contracts that remove any incentive to reduce output when cheaper solar and wind power is available.

Electricity trading between Chinese provinces, also based on annual contracts, prevents surplus renewable energy from flowing to other areas in real time, the analysis found.

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Myllyvirta said all operators should be required to sell electricity in real time so that coal power plants would face competition from very low prices during hours of strong renewables output and have an economic incentive to cut down generation. “But that has not made a lot of progress in China,” he added.

Curtailment rates rising

The intentional reduction of renewable energy generation, a process known as curtailment, saw a significant increase in China at the start of 2026, reaching 9.2% for solar and 8.5% for wind respectively, according to Bloomberg.

Myllyvirta noted that real curtailment rates are likely to be even higher than those reported in official statistics. He added that, until tracking improves, there won’t be enough political pressure to fix the issue.

The findings highlight Beijing's failure to make full use of its record renewables build-out to accelerate the country's transition away from fossil fuels.

If curtailments had not risen, increased capacity means wind and solar could have generated an extra 170 terawatt hours of electricity (TWh) in the first quarter, more than satisfying the growth in power demand, CREA’s analysis found. But, instead, clean power generation rose by just 60 TWh, with wind showing almost no growth.

Global problem

China is not alone in under-utilising its full renewable energy potential. Curtailments have risen in countries including the UK, Australia, India, Chile and Brazil, primarily as a result of bottlenecks in national transmission systems unable to accommodate additional clean power output.

After failing to keep up with the installation of renewable generation capacity, annual investments in updating grids need to increase by around 50% by 2030, according to the International Energy Agency. The watchdog said that, if power networks fail to prevent high levels of curtailments, clean energy operators risk facing significant revenue losses, threatening the investment case for renewables.

One of South America’s largest clean power generators said on Wednesday that it was putting plans for $1 billion in new renewables investment in Brazil on hold as the country’s grid operator rejected up to 25% of the power its existing projects could produce, Reuters reported.