From Fuel to Feedstock
China's Fossil Fuel Turning Point and Implications for Subnational Decarbonization in Carbon-Intensive Industries
English, Chinese
April 2026
Policy Brief
Energy Transition Industry
Summary:
This policy brief analyzes the structural shift in China's fossil energy consumption from fuel to feedstock, identifying provinces with high feedstock dependence and assessing the implications for subnational decarbonization under the "dual control" framework for carbon emissions. The methodology combines quantitative analysis of national and provincial energy statistics from the China Energy Statistical Yearbook (2019–2023) with a classification framework that ranks provinces based on the share of coal, oil, and natural gas used as feedstock relative to their total final consumption of each fuel. It then derives targeted policy recommendations centered on accelerating the deployment of green hydrogen, ammonia, and methanol as substitutes for fossil feedstocks in carbon-intensive industries, supported by a case study of Inner Mongolia's green hydrogen industry plan.
Suggested citation:
Yang, Li & Li, Xindi (2026). From Fuel to Feedstock: China's Fossil Fuel Turning Point and Implications for Subnational Decarbonization in Carbon-Intensive Industries (Policy Brief). Beijing: Institute for Global Decarbonization Progress (iGDP). April 2026.
