Stepping on the gas necessary to realize carbon-peaking goal

China — which committed in 2020 to peaking carbon emissions before 2030 and achieving carbon neutrality before 2060 — has laid out plans to realize the first goal, the deadline for which falls within the 15th Five-Year Plan (2026-30) period.

Over the past five years, the country has made firm and clear strides in green and low-carbon energy transition and emissions reduction, with a steady increase in its installed capacity of green energy, or electricity produced using wind, solar and other kinds of renewable energy.

Data from the National Energy Administration show that in 2025 the installed capacity of renewable energy in China reached 2.34 billion kilowatts, accounting for about 60 percent of the country's total installed power capacity.

In 2025, green electricity output in China reached approximately 4 trillion kilowatt-hours, surpassing the combined electricity consumption of the 27 European Union member states, which was about 3.8 trillion kilowatt-hours.

In addition, the rise of photovoltaics, lithium-ion batteries and new energy vehicles became an important driver for foreign trade growth in 2025, with some observers estimating that China will likely achieve its carbon peaking target ahead of schedule.

These achievements are indeed gratifying. But they should not obscure the deep-seated challenges China faces as it continues to advance energy saving and emissions reduction. One such challenge is the insufficient capacity of the power grid to absorb the fluctuation of green electricity supply, which is often caused by the change of weather and seasons.

Therefore, during the 15th Five-Year Plan (2026-30) period, instead of simply pursuing growth in the installed capacity of renewable energy, the country needs to focus on utilizing more green electricity.

It is necessary to develop more virtual power plants — networks of distributed energy resources — and create a smart management system which coordinates power supply, demand, storage and grid operations to mitigate the fluctuation of renewable energy and its impact on grids.

The construction of pumped hydro-energy storage and electrochemical energy storage facilities should be promoted to store the green electricity exceeding the grid's capacity.

More efforts are needed to develop microgrids and equip them with highly efficient energy storage technologies. With the help of these small-scale grids which are able to operate independently, more green electricity can be consumed locally, reducing the challenge renewable energy poses for the main grid and providing a solid foundation for the country to achieve carbon peaking as planned.

Surplus green electricity could be converted into "green hydrogen" to avoid energy waste. Also, unlike traditional methods of producing the important raw material from coal, oil and natural gas, using green electricity to decompose water into hydrogen does not generate any carbon dioxide.

In the metallurgical sector, such "green hydrogen" could replace coal as a reducing agent, significantly lowering carbon emissions. Its use should also be broadened to cover the production of green ammonia, methanol and sustainable aviation fuels.

Therefore, during the 15th Five-Year Plan (2026-30) period, intensified efforts are needed to overcome technological bottlenecks for the production and utilization of green hydrogen, further improving safety and reducing costs.

It is important to note that coal is a significant energy source in China, and its use cannot be completely replaced in the short term. As a result, the country also needs to further develop carbon capture technologies, reduce energy consumption and costs of the technologies, and facilitate their large-scale application.

Developing the circular economy is another important way to ensure that China achieves its carbon peaking target on time. As a white paper China released in November last year said, the circular economy plays a crucial role in facilitating reduction of carbon emissions.

For example, a large number of discarded home appliances and electronic products form a vast "urban mine" from which metals such as copper and iron can be extracted for reuse, avoiding coal use in traditional metal smelting processes. Research indicates that compared to steelmaking from iron ore, using scrap steel to produce one ton of steel reduces carbon dioxide emissions by 1.6 metric tons.

This year, the National Development and Reform Commission will lead efforts to formulate the 15th Five-Year Plan for the development of the circular economy.

Additionally, China needs to step up efforts to develop the national carbon market, include more sectors into this market, explore carbon futures and other derivatives, and ensure carbon prices accurately reflect the cost of emissions reduction.

Transition finance should be promoted to support the transformation of emissions-intensive industries, and standards should be set up to support a carbon footprint accounting system which covers the entire life cycle of products.

Public participation is essential for China to achieve its carbon peaking goal on schedule. By building public consensus and advocating green lifestyles, the country can galvanize the broadest collective effort from its people to support the green transition.

Therefore, it needs to continue improving its public transportation network, encouraging low-carbon travel and advancing the "Clean Plate Campaign".

The author is a member of the 14th National Committee of the Chinese People's Political Consultative Conference, the former president of Shenyang University of Chemical Technology, and an international fellow of the Royal Academy of Engineering.

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