Energy sector decarbonization in China: macro challenges, supporting technologies and systems, and policy recommendations

China’s energy sector, as a major source of carbon emissions, has been the focus of extensive efforts aimed at achieving carbon neutrality. The advancement and deployment of technology are central to this objective but present significant complexities, as reflected in existing policies and studies. Developing a strategic framework or roadmap for net-zero energy sector technologies in China is therefore of considerable importance.

The team to support the roadmapping of China’s carbon neutrality technology development, affiliated with Tsinghua University and the Administrative Centre for China’s Agenda 21, recently conducted a study on the technological requirements and obstacles of China’s energy sector decarbonization. This work may help to achieve a better understanding of technology development and deployment, and to make more thoughtful policy recommendations.

The team published their review in Technology Review for Carbon Neutrality on December 31, 2024.

In this review, the team provided a holistic perspective considering both the supply and demand sides, the short and long terms, as well as governmental and market-based strategies. In addition to emissions reductions, China must ensure energy security, align with high-quality economic development, and address challenges such as the geographical mismatch between energy production and consumption, as well as the integration of emerging energy infrastructures with the existing fossil fuel-based system.

Addressing these challenges requires a suite of technological solutions. Three primary pathways can directly reduce emissions in the energy sector: (1) improving efficiency and reducing overall energy consumption, (2) transitioning to zero-carbon energy sources in both production and consumption—such as renewable energy, nuclear power, and other non-emitting energy carriers, and (3) implementing carbon capture, utilization, and storage (CCUS) technologies to capture produced or existing CO₂ emissions. However, the deployment of these technologies introduces additional complexities, such as the instability of power systems with a high share of variable renewable energy. Enabling technologies, including the grid transmission, distribution and storage system, carbon governance system, and risk alleviation system such as waste management, are also essential.

These decarbonization technologies and systems are coming into play under rapidly changing technological, economic, and regulatory landscapes in China. While important progress is taking place, technology innovations in addition to cost advantages are crucial for China to maintain competitiveness in decarbonization. A top-level design of a decarbonization technology roadmap would be necessary and beneficial, subject to periodic evaluations and dynamic adjustments to accommodate emerging technologies and solutions. The research team expects this paper will serve as a valuable resource for guiding future technological advancements in China’s energy sector.

Other contributors include Xiliang Zhang, Da Zhang and Yuyan Weng from the Institute of Energy, Environment and Economy at Tsinghua University, Xian Zhang from the Administrative Centre for China’s Agenda 21, Xiaodan Huang from the Tsinghua-CTG Joint Center for Climate Governance and Low-carbon Transformation and Weichen Zhao from the Bartlett School of Sustainable Construction at University College London.

This work was supported by Special Projects No. 72140005 of the National Natural Science Foundation of China and No. 2022QNRC001 of the Young Elite Scientists Sponsorship Program by CAST.