Anika Patel writes on the Carbon Brief website about China’s new five-year energy strategy, which strengthens its commitment to renewable energy while retaining coal as a backup, introduces mandatory clean energy consumption targets, and reinforces its position in global clean-energy competition.
China Briefing 25 June 2026: Five-year plans passed | Critical-mineral tensions | Industrial decarbonisation plan
Key developments
New five-year plans
GENERATION TARGET: China today released its 15th five-year plan for building a “new-type energy system”, according to finance news outlet Cailianshe. It said the plan covered topics including energy sources, power-market reform and China’s role in clean-energy supply chains and climate governance. The plan, published by the National Development and Reform Commission, stated that China will aim for clean energy to constitute 30% of power generation by 2030 – up from approximately 22% today. It also stated that wind and solar will become the “mainstay” of China’s power mix. The government will work to increase clean-energy consumption, such as by upgrading the grid to “accommodate” 900 gigawatts of distributed energy and promoting emerging solutions such as virtual power plants and hydrogen. The plan also urged the “strengthening” of coal’s role as a “bottom-line guarantee”.
IN THE WORKS: At a meeting on 11 June, China’s State Council approved the “15th five-year plan for building a beautiful China”, reported industry news outlet BJX News. The meeting readout noted the importance of “actively address[ing] climate change” and developing “green production and lifestyles”, it added. The next day, the Ministry of Ecology and Environment (MEE) approved a series of environment-related five-year plans, including the “15th five-year plan for a national response to climate change”, said business news outlet 21st Century Business Herald article. The full text of the plans is not yet available.
JOBS AND GOVERNANCE: A separate five-year plan on employment included calls to “unlock employment potential” by developing “new energy system” projects, according to current affairs outlet China News. The government also published a white paper on global governance that said the “general public truly feels that nations are taking action and that unity can overcome any obstacle” to address climate change, reported state news agency Xinhua. It added that the paper called on developed countries to “honor their commitments” on climate finance. Foreign minister Wang Yi said in a press conference that China aims to “innovate governance mechanisms” to address issues such as how countries can “achieve” a global low-carbon transition, Xinhua also reported.
Critical mineral barbs
REDUCE DEPENDENCIES: The Group of Seven (G7) major economies have stated that “no single country should supply more than 60% of their imports of rare earths”, reported Bloomberg, in “an effort to reduce their reliance on China”. The full communique, which does not mention China by name, said that diversifying supply chains was “urgen[t]”, due to “market concentration”, the “growing use of arbitrary trade restrictions” and the need to “reduce vulnerabilities”. In response, China’s foreign ministry urged the G7 to “stop disrupting the international trade order” with “self-made rules”.
EXPORTS BLOCKED: The Indonesian government’s new nickel production quotas and pricing rules could put $50bn of Chinese investment at risk, Chinese diplomats argued in a letter covered by the Financial Times. Lithium miners in Zimbabwe, including Chinese firms, are asking for more time to build local processing facilities ahead of a 2027 lithium concentrate export ban, said Reuters. Meanwhile, China restricted trade with two US rare-earth companies, in response to the US adding companies including CATL and BYD to a “blacklist”, said the Financial Times. China’s exports to Japan of rare earths used to make permanent magnets remain “negligible”, reported Reuters.
DIALOGUE URGED: EU member states have asked the European Commission to develop new trade instruments to deal with the “economic threat” posed by China, reported the Hong Kong-based South China Morning Post. Despite “combative rhetoric” ahead of the summit, the Financial Times reported that the 27 leaders opted for dialogue rather than immediate action to address “global macroeconomic imbalances”. Separately, the European Commission plans to impose tariffs on Chinese plug-in hybrid electric vehicles, reported German business newspaper Handelsblatt.
CLIMATE MINISTERIAL: The EU, China and Canada held a climate ministerial, in which Chinese environment minister Huang Runqiu said countries “must strengthen cooperation rather than retreat from it”, said Euronews. Climate outlet Tanpaifang reported that Huang also said COP31 should address “insufficient emission reduction efforts and financial support from developed countries”. According to a European Commission transcript, EU climate commissioner Wopke Hoekstra said: “We need to act for climate, but also for competitiveness and independence. We cannot afford to depend on third countries.”
Mandatory targets for energy users
NEW TARGETS: From August, the Chinese government will “set binding targets” for companies on how much low-carbon power and non-electric energy they must consume, said Bloomberg. It added that targets will be set for how much low-carbon power provinces must absorb into their grids. Provinces and “key energy-consuming industries” will see their uptake of clean energy monitored on a quarterly basis and be subject to annual assessments by the State Council, said industry news outlet International Energy Net.
END-USER PRESSURE: The announcement marks the first time that China has established targets for non-fossil energy consumption at the “end-user level”, reported economic news outlet Jiemian. It added that the previous system, which only covered power, placed the responsibility for absorbing renewable energy into the grid “primarily” onto local governments and power grid companies.
SUPPORTING THE MARKET: The new measures will “help address grid integration challenges and promote better utilisation of renewable energy”, an official at the National Energy Administration told reporters, according to Xinhua. The official said it would also help boost demand for other low-carbon industries, such as “green hydrogen, ammonia and methanol”. Liu Guobin, vice-president of the China Electric Power Planning and Engineering Institute said in an “explanation” posted on International Energy Net that the measures would also “convey clear…expectations to the market” for the long-term outlook for renewable energy, “guiding the rational allocation of investment”.
External link
Energy in Demand - Sustainable Energy - Rod Janssen 