China’s Q3 emissions post biggest drop since pandemic as Hormuz crisis curbs fossil fuel use

[BEIJING] China’s carbon dioxide emissions from energy and industry fell 3.1 per cent year-on-year in the third quarter of 2026, the biggest quarterly drop since the pandemic, as the world’s biggest emitter used less fossil fuel, according to an analysis on Friday by the Helsinki-based Centre for Research on Energy and Clean Air (CREA).

China cut its oil use by 4 per cent during the quarter as the crisis in the Strait of Hormuz curbed energy shipments, said the CREA analysis, which was carried out for UK-based Carbon Brief. The analysis included emissions from fossil fuels and the cement industry

Transport oil use declined even more sharply during the quarter, dropping by 9 per cent year-on-year, the analysis found, as people relied more on electric cars and taxis to get around.

Coal use fell by 3.3 per cent as wind and solar wastage improved, and power demand fell due to mild weather

“The sharp decline in China’s CO2 emissions extends a ‘flat or falling’ trend that began in March 2024 and has now lasted more than two years,” the report said, referring to the rolling 12-month total of China’s emissions, which is used to smooth out seasonal factors.

Growth in the coal-to-chemicals sector also slowed as higher coal prices led to a drop in demand for coal-chemicals products, following a boom earlier in the year, when low coal prices helped Chinese companies outcompete rivals using petroleum-based feedstocks.

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China’s emissions have now fallen by 0.5 per cent in the first three quarters of the year, the analysis found, indicating the trend of falling fossil fuel use and emissions could hold for the full year. REUTERS