China's Industrial Sector Shows Signs of Peaking Fossil Fuel Use

A new analysis from think tank Ember finds that clean power generation in China last year more than covered the growth in electricity demand, leading to a slight drop in coal output. Eight provinces, including industrial hubs like Hunan and Shandong, are now seeing declining coal generation, while nine others show a marked slowdown in growth. The report also notes that in eight of eleven industrial sectors, including textiles, food, and pharmaceuticals, fossil fuel use has already peaked as factories electrify processes like heating and cooking.

Ember's analysis reveals that clean electricity generation outpaced demand growth nationwide, resulting in a modest decline in coal production. Eight provincial regions, including major manufacturing centers such as Hunan and Shandong, are experiencing falling coal output, while nine additional provinces show a pronounced deceleration in growth.

The transition extends beyond power plants to factory operations. Across eight out of eleven industrial categories—encompassing textile, food, pharmaceutical, and machinery sectors—fossil fuel consumption has already reached its peak. This shift is driven by factories switching to electric alternatives for processes like heating and cooking, replacing traditional gas boilers and ovens.