Shanxi's green transition an example others can learn from

Generations of Chinese have known Shanxi as a province where coal is not merely a commodity but the pulse of the local economy, the foundation of people's livelihoods and a cultural touchstone. Yet the province now faces the daunting task of maintaining this legacy while reinventing itself in the new era. With increasing resource constraints, mounting ecological pressure and narrowing industrial structures, Shanxi's transformation could offer a blueprint for resource-dependent regions across China about how to realize green transformation.

Shanxi is not starting from scratch. It has been methodically laying the groundwork for a comprehensive, high-quality transformation, in order to maintain its energy security, modernize its industrial base, diversify its economy and embrace green growth — all without losing its historical strength. This balancing act requires both discipline and imagination.

Shanxi is increasingly demonstrating that coal, the province's lifeblood for decades, need not be a shackle. Instead, it can serve as a bridge to a diversified energy future. In recent years, Shanxi has been taking measures to balance its energy sector's development and supply security with its green transition. The result is a steady march toward a new energy system — one that integrates traditional coal production with wind, solar, hydrogen, and other renewable energy generation.

The province prioritizes national energy security. In the first four years of the 14th Five-Year Plan (2021-25) period, Shanxi produced more than 5 billion tons of raw coal, ensuring stable electricity supply across 23 provinces. The province's unconventional natural gas production, too, has increased, reaching a cumulative total of 56.97 billion cubic meters. In fact, Shanxi is managing the production of coal, electricity and gas in an integrated way, showing that a province once defined solely by high coal production can also set benchmarks in modern energy management.

Importantly, Shanxi is also upgrading its coal industry. Pilot projects, such as high-sulfur coal integrated utilization and coal-based new materials production, are helping build a complete industry chain for coal-to-olefins and coal-to-ethylene glycol products. By combining clean energy technologies with industrial modernization, Shanxi is turning coal from a climate liability into a dynamic product.

The province's renewable energy goal is no less ambitious. By 2024, Shanxi's installed renewable energy capacity on the provincial grid accounted for more than 50 percent of the provincial grid's installed power, with renewable output at peak times meeting more than 90 percent of the provincial electricity demand.

Hydrogen, methanol, geothermal and biomass projects are steadily developing in the province, and large-scale wind and solar power generation bases are being planned on land sites previously considered unusable — mining subsidence areas, waste heaps and saline-alkali land. Shanxi is essentially writing a playbook on how a traditional energy hub can pivot toward a clean energy future.

The energy transition is only part of Shanxi's story. Industrial transformation lies at the heart of its economic policy. The province is reforming its traditional sectors — coal, steel, chemicals and building materials — to change their low-efficiency, high-pollution nature and pursue greener production. Simultaneously, emerging and future industries are beginning to cluster, creating scale effects in the digital economy, new materials and high-tech manufacturing.

As part of Shanxi's technology-driven industrial revitalization, companies such as Yangquan Valve Co are moving from traditional manufacturing to precision "smart manufacturing", developing hydrogen pipeline valves and other products that will fill the domestic gaps and reach international standards. This is emblematic of a broader trend: turning traditional industries into engines of new productivity, while improving their product value and market competitiveness.

Shanxi is also nurturing industrial clusters using a "chain-linked" approach. By focusing on provincial priority industry chains — such as specialty steel materials — it is fostering coordination between leading enterprises, core chain companies and specialized "little giant" companies. The result is a collaborative network that promotes innovation, helps integrate supply chains and boosts competitiveness across sectors.

Beyond energy and industry, Shanxi is also exploring other avenues of growth. Its mineral wealth, which extends beyond coal to aluminum, magnesium and other metals, will help it develop specialized high-value materials, while its cultural heritage, with national-level protected sites and historic towns, will promote tourism, and wellness and cultural industries.

To make the most of these opportunities, Shanxi is fostering a business-friendly environment and deepening reforms to simplify administrative work, reduce costs and support entrepreneurship. Its streamlined procedures at the provincial, municipal and county levels, along with its policies encouraging credit-based oversight and enterprise support, are aimed at making investment easier, safer and more predictable, and building a vibrant, diverse market ecosystem where enterprises — from small start-ups to high-tech manufacturers — can thrive.

Shanxi's transformation demonstrates that even single resource-dependent regions can modernize legacy industries, creatively leverage resource endowments and integrate tradition with innovation. By carefully planning, promoting technological innovation and committing to sustainable growth, the province has turned historical constraints into competitive advantages. Its experience shows that balancing energy security, industrial upgrading and strategic diversification can create a resilient, high-value economy, offering a blueprint for other regions seeking to achieve sustainable development in the new energy era.

The author is the Party secretary and president of the Shanxi Academy of Social Sciences.

The views don't necessarily reflect those of China Daily.