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China is the world's largest coal producer and importer, with a significant shift toward large-scale and mega-scale mining operations. Despite climate goals, China is developing approximately 1,280 Mtpa of new coal capacity, nearly half of the global proposed pipeline. This expansion, concentrated in provinces like Inner Mongolia and Shanxi, drives massive methane emissions, with China's operating mines alone accounting for roughly 70% of global coal mine methane emissions from similar-sized operations. State-owned enterprises (SOEs) dominate the sector, controlling 40% of production capacity and contributing nearly 40% of the nation's coal mine methane emissions.

China is currently off track to meet its 2025 climate commitments, including targets for carbon and energy intensity and the share of non-fossil fuels. This is driven by a surge in coal power permitting and construction, with 114 GW approved and 70 GW starting construction in 2023. Despite official rhetoric that new coal plants serve a 'supporting' role for grid stability and renewable integration, the report finds this is often a 'smokescreen' for bulk power generation, leading to significant overcapacity and stranded asset risks.

China is experiencing a significant increase in coal power capacity, with 37 GW starting construction and 52 GW permitted in the first half of 2023. The report argues that most of these projects violate central government policies intended to limit coal to a supporting role for renewables, instead serving as bulk power generation. This trend, driven by energy security concerns and a desire to maximize carbon-intensive capacity before the 2030 peaking deadline, risks creating massive overcapacity and undermining China's carbon neutrality goals.

In 2022, China experienced a dramatic surge in coal power project activity, permitting 106 GW of new capacity—the highest level since 2015. While 50 GW started construction, representing six times the capacity of the rest of the world combined, the trend is driven by rising peak electricity loads and a rigid grid paradigm. Despite claims that new plants are for "supporting" grid stability, evidence suggests they are intended for baseload use. This expansion occurs alongside record clean energy additions, but risks undermining China's carbon neutrality goals if it leads to a moderation of clean energy buildout or increased CO2 emissions.

In 2021, China's coal-fired power construction reached its highest level since 2016, with 33 GW of new capacity starting construction. Despite carbon neutrality targets, investment in long-process steel remains high, with China accounting for 85% of global new long-process capacity. The report warns that these investments lock in coal dependency and risk creating stranded assets valued at hundreds of billions of dollars. While there is growth in electric arc furnace (EAF) steel and renewable energy targets, the scale of new fossil-fuel infrastructure continues to outpace the transition needed to meet Paris Agreement goals.

Despite pledges for carbon neutrality, China's power and steel sectors continued to announce coal-based projects in early 2021. While CO2 emissions growth showed signs of cooling in the second quarter of 2021 due to government controls on financial excesses and industrial output, the volume of new coal projects remains high, risking the creation of stranded assets and undermining 2030 emission reduction targets.

Despite a slowdown in emission growth in Q2 2021, China's power and steel sectors continued to announce significant new coal-based capacity in the first half of the year. The report highlights a contradiction between economic growth driven by construction and decarbonization goals, noting that zero-emission power only met 30% of electricity demand growth between H1 2019 and H1 2021. While government measures to control fiscal overspending and industrial output led to a slowdown in CO2 emission growth in the second quarter, the continued announcement of coal-based projects risks creating stranded assets and hindering the transition to low-carbon technologies.

The China Green Bond Market Mid-Year Report 2018 details a 14% year-on-year increase in green bond issuance from Chinese issuers in H1 2018, totaling USD 13.02 billion. While financial and non-financial corporates drove growth, 28% of total issuance failed to align with international green bond definitions, primarily due to allocations to general working capital. Renewable energy remained the largest sector for proceeds, and over 40% of issuance occurred offshore, led by ICBC. The report also highlights new regulatory measures from the PBoC and the launch of a Green Bond Issuance Programme in Hong Kong.

Coal mining accounts for 8 percent of global methane emissions. While significant potential exists for abatement through degasification and ventilation air methane (VAM) oxidation, progress is hindered by policy, financial, and technological barriers. In China, legal frameworks and conflicting safety/emission standards create hurdles, while India lacks resource assessments. Russia faces issues with licensing and inefficient degasification systems. In the US, split-estate ownership on federal lands and a lack of federal mandates limit viability. The report suggests that while large-scale investment is available, a lack of small-scale funding for design and demonstration is a primary obstacle, proposing revolving funds and micro-loans as solutions.

This case study examines the integration of climate change adaptation into China's Comprehensive Agricultural Development (CAD) program, specifically through the World Bank-financed Irrigated Agriculture Intensification Loan III Project (IAIL3) and a subsequent Global Environmental Facility (GEF) grant. Focused on the 3H Plain, the initiative aimed to address water scarcity and agricultural vulnerability by implementing drought-resistant crop varieties, water-harvesting infrastructure, and capacity-building for farmers, including rural women.

Following severe floods in 1998, the Chinese government shifted from building larger levees to a 'soft path' of environmental restoration in the Yangtze River basin. This approach, guided by the '32 Character Policy' and coordinated by the National Development and Reform Commission (NDRC), involved restoring 2,900 square kilometers of floodplains and relocating 2.4 million people to higher ground. These measures increased floodwater retention capacity by 13 billion m3, improved biodiversity, and diversified local livelihoods. The strategy was later incorporated into the 2007 National Climate Change Programme as a 'no regrets' adaptation measure, though challenges remain regarding institutional rivalry and a lingering preference for hard engineering solutions.