China is implementing new renewable power pricing policies in July. This has created uncertainty regarding the country's ability to meet its Paris Agreement commitments. The new policy removes existing price guarantees linked to coal-power rates.
New wind and solar projects must now negotiate contracts directly with electricity buyers. This is likely to lead to lower prices for new renewable energy projects. Favorable pricing will still be available for projects aligned with central government targets.
Despite progress, China remains the world's largest emitter of greenhouse gases. The National Energy Administration has set a target of "more than 200 GW" of annual clean energy additions. This is well below the 360 GW added in 2024.
The uncertainty surrounding renewables expansion affects China's climate credibility. The 2025 government work plan omitted a carbon intensity target. This signals reduced policy emphasis on emissions reduction.