History Made: China’s Power Emissions Just Hit Record Lows

In a major global development, China’s electricity sector has, for the first time ever, dropped below 500 grams of CO₂ per kilowatt-hour. This marks a pivotal turning point—not just for China, but for global emissions trends, ESG strategies, and Scope 2 reporting across industries.

The Numbers Behind the Shift

According to recent data, China’s clean electricity output jumped by 23% year-over-year in the first half of 2025. Coal-fired power generation, meanwhile, saw a modest decline of about 4%. While fossil fuels still account for roughly 75% of the energy mix, this milestone shows a meaningful move toward decarbonization.

This is the cleanest power mix ever recorded in the world’s largest power system. And while the shift may seem incremental, its impact is anything but

Why It Matters (Even If You’re Not in China)

You don’t need to operate in China to be affected by this change.

• Carbon pricing and global offsets: China’s cleaner grid could influence international carbon markets and offset strategies.

• Investor pressure: Multinational companies sourcing from Chinese manufacturers will face higher scrutiny around embedded emissions in their supply chains.

• Scope 2 emissions: Accurate emissions tracking now requires real-time regional energy mix data, not static assumptions or national averages.

The Challenge: Are You Measuring Scope 2 Correctly?

While Scope 1 and 3 get a lot of airtime, Scope 2 the emissions from purchased electricityare often poorly measured. Many companies still rely on outdated spreadsheets or proxy data, missing critical shifts like this one in China.

Tracking the real-time carbon intensity of electricity used across locations is now essential not optional.

What Forward-Looking Companies Are Doing

• Mapping energy sources to operations: Knowing where your electricity is sourced and what mix powers your sites.

• Integrating data platforms: Using tools that bring utility, procurement, and emissions data together.

• Scenario modeling: Forecasting emissions impact as the grid evolves.

Final Thought

This isn’t just a China story. It’s a signal that energy data is ESG data and companies that can’t interpret it will be left behind.

As global power systems evolve, organizations must shift from static reports to dynamic insights. The leaders will be those who can see and act on energy changes in real time.