As the largest producer of carbon dioxide in the world, China experienced a 3.1% decrease in carbon emissions in the third quarter of 2023. This reduction was primarily due to a 4% drop in crude oil consumption and a 9% decrease in fuel use in the transportation sector.
Reduction in Fuel Consumption and Its Impacts
According to a report from the Finnish Energy and Clean Air Research Center, coal consumption in China also decreased by 3.3% during this period. This reduction in carbon emissions continues a trend that began in March 2024 and has lasted for over two years. CREA analysts believe these changes indicate a negative trend in energy consumption and its impact on the environment.
Decrease in Oil and Gas Imports
Additionally, due to the critical situation in the Middle East, China has reduced its oil and gas imports and turned to alternative energies such as wind and solar power. Estimates show that from March to August 2023, China saved $9.1 billion on its oil and gas imports. Meanwhile, China has relied on its large crude oil reserves and has been using these reserves for a long time due to rising oil prices above $100 per barrel.
As the largest importer of crude oil in the world, China has continuously utilized its 1.3 billion barrel reserves, helping to control oil prices even as oil flows from the Middle East are under pressure.
CREA data indicates that despite abundant oil reserves, China has reduced its energy consumption to such an extent that it has had a significant impact on CO2 emissions. These changes reflect China's increasing attention to environmental issues and efforts to reduce dependence on fossil fuels.
