China's 2026-2030 Carbon Plan: 17% CO2 Intensity Cut, More Clean Energy and Grid Upgrades

China's State Council released a new action plan covering 2026 to 2030 that aims to cut carbon dioxide emissions per unit of GDP by 17% from 2025 levels. The plan focuses on expanding non-fossil energy, upgrading power grids, and boosting new energy vehicle adoption. It sets the framework for China's dual carbon goals amid global trade pressures and domestic economic restructuring. The plan leans heavily on scaling renewable energy and modernizing grid infrastructure to support higher shares of variable generation. It also targets increased EV penetration as a key lever for transport sector decarbonization. The 17% intensity reduction target is a concrete benchmark that will drive investment in clean energy projects and grid upgrades over the next five years.