The energy sector in China is at a critical juncture with pressure to continue to support economic growth, while combating local air pollution and reducing greenhouse gas emissions (GHG). At present, China’s energy system is dominated by fossil fuels, and the country is both the world´s largest energy consumer and GHG emitter. China remains the largest coal consumer, responsible for 55% of global coal use, although coal’s share in China's primary energy consumption has been consistently declining and 2025 marked an absolute decline in coal fired electricity generation.[1] China also accounts for half of the world's utility-scale solar and wind power capacity under construction and accounts for more than 60% of global additions to renewable power-generation capacity. Renewable energy accounted for approx. 22% of China’s total energy production in 2025. Recognizing the need for an environmentally sustainable growth model, China has backed the Paris Agreement, which aims to limit global temperature increases to below 2°C compared to pre-industrial levels.
China’s Nationally Determined Contribution (NDC) to the Paris Agreement includes a commitment to peak carbon emission by 2030 and achieve carbon neutrality by 2060. Moreover, China aims to reduce carbon intensity by 65% compared to 2005 levels. Under its updated NDC for 2035, presented at New York Climate Summit by President Xi Jinping in September 2025, China additionally commits to increasing the share of non-fossil fuels in total energy consumptions to over 30% and reducing net GHG emissions by 7-10% from their peak level by 2035.
While China continues to expand its coal capacity, it is simultaneously pursuing reductions in CO₂ intensity, signalling an increased focus on energy-system flexibility and efficiency to accommodate rising energy demand. Denmark is uniquely positioned to assist China to achieve these goals and even to increase the level of ambition. The Danish energy model is based on several decades of transition and ambitious policy targets on renewable energy and a proven, flexible energy system. Denmark has demonstrated that it is possible to combine economic growth with a parallel reduction of GHG emissions and energy consumption.
Long-term energy modelling and planning are key components of the Sino-Danish energy collaboration. A central deliverable is the annual publication at COP of the China Energy Transformation Outlook (CETO), which is approved by the NDRC before release and created together with Energy Research Institute (ERI). CETO consists of scenario analyses based on extensive modelling work, outlining a cost-effective pathway for China’s energy transition.
DEPP26
A key criterion for CNDEPP26 partner selection is the national commitment to reducing GHG emissions and interest in collaborating with Denmark to benefit from Danish leading competences in green energy transition. China remains a strategic partner for the DEPP26 due to the successes of DEPP III, as well as its current and forecasted acceleration in energy demand, significant CO2 emissions and the potential for cost efficient reduction of GHGs.
As a major economy and the world’s largest emitter of GHGs, the successful completion of its low carbon transition will play a significant role globally in achieving the objective of the Paris Agreement. In accordance with the objective and principles of the Danish Climate Envelope, DEPP26 priority will be given to interventions where a transformational and sustainable shift to renewable energy and energy efficiency can be achieved through enhanced policy frameworks and markets structures in partner countries.
Interventions will be delivered within four thematic areas where DEA have extensive competences and a comparative advantage over most, if not all, other leading energy authorities. The four thematic areas are:
- Long-term energy modelling and planning
- Enhanced framework conditions for renewable energy
- Integration of renewable energy and flexibility of the power sector
- Energy efficiency and district heating
Under the CNDEPP26, the former Strategic Sector Cooperation (SSC) on clean heating with China’s National Energy Administration, will be incorporated to facilitate the dialogue under a broader cooperation, Sino-Danish Clean Energy Partnership, and will continue to facilitate Sino-Danish knowledge exchange and cooperation on district heating and energy efficiency, promote the integrating of renewable energy, while highlighting associated socioeconomic benefits in relation to emissions reduction.
