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Plummeting oil use drives down CO2 emissions in China – Analysis
Date posted:
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Post Author
Tracey Biller
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China’s carbon dioxide (CO2) emissions fell by 1% in the second quarter of 2026, as oil consumption plummeted amid the strait of Hormuz crisis.
This is according to a Centre for Research on Energy and Clean Air (CREA) analysis forCarbon Brief penned by CREA lead analyst Lauri Myllyvirta. Ms Myllyvirta notes that total CO2 emissions fell despite a continued rebound in coal-fired power generation.
While emissions remain marginally elevated after a 2% increase in the first quarter, they remain below their peak in 2023-24.
The report also documents a 9% overall decline in the use of oil as well as a 16% decrease in oil use in the transport sector.
Behind the key findings for the second quarter of 2026 is the fact that electric vehicles (EVs) and public transport have become key factors in China’s oil demand, enabling transportation levels to increase even as fuel use fell sharply. In fact, oil consumption displaced by EVs in China in the first half of 2026 exceeded the UK’s total oil consumption over a six-month period.
The report also finds that China is on track to add enough wind, solar, nuclear and hydropower this year to cover electricity demand growth, despite a slowdown in new capacity.