China’s carbon neutrality largely relies on its energy and electricity sector, the biggest carbon emitter. This study tracks the sector’s low-carbon transition to provide policy insights for China and other nations. Based on data mining from official statistics, government documents and reports, the research finds China has significantly expanded wind and solar capacity to peak carbon emissions by 2025, but new coal projects, inadequate grid infrastructure and flawed regulatory frameworks hinder the transition, as local governments prioritize energy security over sustainability. Policy recommendations include establishing an emission peaking framework, enhancing resource security, promoting distributed renewable energy and energy storage, and repositioning coal as a supplementary power source. Its originality lies in comprehensively analyzing the interplay between renewable expansion and coal investment, addressing China’s unique energy challenges with innovative policies, and offering practical references for global decarbonization efforts. Balancing energy demand and economic pressures remains critical, requiring concerted innovative policies for a sustainable low-carbon power sector.

Yimei Zhang, Chen Zhao, Yifei Hu, Yao Liu. Insights and Policy Directions for China's Power Sector Amid Carbon Neutrality Goals. Academic Journal of Business & Management (2026), Vol. 8, Issue 8: 57-66. https://doi.org/10.25236/AJBM.2026.080808.

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