China experienced a 1% reduction in carbon dioxide emissions during the first half of 2025 compared to the same period last year, according to a recent report from the Centre for Research on Energy and Clean Air (CREA) based in Helsinki. The decline largely stems from a significant rise in renewable energy generation, particularly from solar power.

Emissions within China’s power sector, the country’s largest contributor to greenhouse gases, dropped by 3% over the six-month span. CREA’s lead analyst, Lauri Myllyvirta, attributed this improvement to the rapid expansion of the nation’s solar power capacity, which is anticipated to reach another record level of additions by the end of 2025. This trend positions China on track for an overall emissions decline throughout the year.

Despite these gains, coal consumption in the power sector decreased by 3%, offset by a 6% increase in gas usage for electricity production. Emissions also decreased in sectors including building materials, metals, cement, and steel, largely due to a slowdown in China’s property market.

However, the chemical industry remains an outlier, showing rising carbon emissions. The sector’s use of coal as a feedstock for producing synthetic fuels and petrochemicals surged by 20% in the first half of the year. This shift has contributed an additional 3% to China’s total carbon emissions since 2020, with projections suggesting a further 2% increase by 2029.

China, recognized as the world’s largest emitter of CO2, last reported a yearly emissions decrease in 2022 amid the pandemic-related economic slowdown. The country has set ambitious climate goals, including peaking carbon emissions by 2030 and achieving net-zero emissions by 2060.

Requests for comment from China’s Ministry of Ecology and Environment were not answered outside of normal business hours.