China registers first decline in coal use in a decade as green energy soars

Japan's Sanae Takaichi and the energy security election mandate

In today’s edition:

— China’s first decline in coal use in 10 years is a major tipping point toward lower global emissions

— Japan’s prime minister won a snap election on key reforms, including returning nuclear power

— Can we learn about climate solutions from our own plants?

— Why pulling critical minerals out of Greenland will be harder than the White House thinks

— Humanity extracts 11 tons per person of minerals, fuels and resources from Earth each year

The Tianjin power plant, in northwest China, is coal-powered. It is China’s first near-zero emission project, which converts coal into a mixture of hydrogen and carbon monoxide for electricity generation. Photo: Asian Development Bank.

Amid the political and cultural chaos this week over the latest White House attack on climate regulations and the Puerto Rico power grid, a major shift in the global fight against climate change occurred in China. For the first time in more than a decade, the world’s largest burner of coal for energy reported an annual decline in coal usage in 2025, despite an increase in energy demand.

The 1.9% decline came as coal capacity fell below 50% and will lower to almost 30% in the next decade, according to a report by energy researcher Wood Mackenzie. The declines came during a decade in which solar and wind power usage grew tenfold, as prices for renewable energy fell about 75%.

Even with years more decline, China will remain the largest burner of coal, which it has said it will use whenever necessary to meet energy demand. The largest coal companies in the world are mostly Chinese, and despite the drop they will continue to churn out emissions for decades to come.

U.S. coal companies, for example, remain in business and are continuing to attract investors more than 17 years after coal usage peaked in 2008. Shares of Peabody Energy. BTU 0.00%↑ shares have more than doubled in the past year while shares of Warrior Met Coal HCC 0.00%↑ are up more than 70%, as the White House eases pollution regulations.

Still, at a time when it looks like political forces are lined up against decarbonization and improvements to the environment, China’s small but significant achievement moves the needle in the fight against global warming.

If you have ideas or suggestions for us, contact me directly at
dcallaway@callawayclimateinsights.com.

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Tuesday’s subscriber insights

Japan Prime Minister Sanae Takaichi. Photo: Trong Khiem Nguyen/flickr.

Sanae Takaichi’s climate agenda and the energy security play