China is at a crossroads. It produces more coal than any other country while leading the world in renewable energy installations.

In 2023, it mined 4.7 billion tonnes of coal—more than half the global total—while also accounting for 64% of all wind and solar projects under construction globally.

However, its continued reliance on coal risks undermining its climate goals, including peaking emissions by 2030 and achieving carbon neutrality by 2060.

Despite investing heavily in renewables, China is rapidly expanding its coal capacity. It is currently building 450 million tonnes of new coal mining capacity per year (Mtpa), with another 830 Mtpa in planning.

These developments lock in decades of emissions, contradicting efforts to reduce the nation’s environmental footprint.

Methane emissions are a significant concern, as coal mining remains the largest industrial source of the potent greenhouse gas. China’s coal mines already emit 52,726 million cubic meters (MCM) of methane annually, about 70% of the global total.

Planned coal projects could add nearly 15,000 MCM annually, further escalating the climate crisis. Even as coal dominates, China has shown progress in renewables.

Fossil fuels now supply 62.7% of its electricity, down from 65.7% last year. Yet, over 420 gigawatts of coal-fired power plants are still in development, more than twice the U.S.’s operating coal fleet.

This dual approach of expanding coal and renewables highlights the contradictions in China’s energy policy.

State-owned enterprises drive much of this growth, controlling 40% of China’s coal production. China Energy Investment Corporation produces 473 million tonnes of coal annually, emitting more methane than Australia’s entire coal industry.

These companies contribute nearly 40% of China’s total coal mine methane emissions, amplifying their environmental impact.

China is also a major coal importer, bringing in 474 million tonnes in 2023, mainly from Indonesia, Russia, and Mongolia. Coastal provinces often find imported coal cheaper than transporting it domestically, even as domestic production hits record highs.

Imports remain a small fraction of consumption but reveal inefficiencies in China’s energy supply chain.

The report warns that China’s coal expansion threatens its climate commitments and the Paris Agreement’s 1.5°C target.

New mega-mines, designed to operate for over 50 years, could lock in emissions for generations. Methane mitigation technologies are costly and rarely implemented at the necessary scale.