Chinese energy consumption

China, as the world's largest energy consumer, reached an energy consumption of 3.652 billion tons of oil equivalent in 2021, accounting for about 25 percent of global energy consumption. Despite an increasing share of renewables, coal remains the dominant energy source at 60 percent, followed by oil and natural gas. Rapid industrialization and urbanization have driven this growth, leading to significant environmental degradation. In response, China has committed to reach peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060. Efforts include improving energy efficiency through industrial agglomeration and market liberalization, which have contributed to reduced energy intensity. However, energy consumption and CO₂ emissions vary across provinces due to uneven economic development and liberalization. Factors such as private sector growth, foreign direct investment, urbanization, and sectoral contributions significantly influence energy usage. While policies aimed at sustainable development and market reforms show promise, regional disparities pose challenges to achieving uniform decarbonization across China.