China has unveiled a new climate strategy aimed at reducing carbon intensity by 17% between 2026 and 2030, as part of its latest five-year economic decarbonisation plan. The policy outlines how the world’s second-largest economy plans to balance climate commitments with continued industrial growth and energy security.

Carbon intensity measures the amount of carbon emissions produced per unit of economic output. By focusing on this metric, China aims to lower emissions relative to economic growth while maintaining its manufacturing-driven economy.

The new plan also prioritizes the expansion of renewable energy capacity, with a goal to replace approximately 30 million metric tons of coal consumption annually with renewable power. However, the framework does not introduce new limits on total coal use, reflecting coal’s continued role in supporting China’s industrial activity.

The strategy follows mixed outcomes from the previous five-year cycle, during which China achieved a 12% reduction in carbon intensity, falling short of its 18% target. For 2026, the government expects carbon intensity to decline by around 3.8%, according to national planning authorities.

Some analysts caution that the new target may still allow overall emissions to rise if economic growth outpaces efficiency improvements. Experts note that achieving deeper reductions will depend largely on how quickly renewable energy can scale across the country’s rapidly growing energy demand.

Despite the concerns, the plan reinforces China’s broader climate commitment to peak carbon emissions before 2030 and achieve carbon neutrality by 2060, highlighting the central role of clean energy expansion in the country’s long-term transition strategy.