In Depth: As China Pursues Carbon Goals, Coal Heartland Faces Uphill Struggle
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Reaching China’s “dual carbon” goals — peaking emissions by 2030 and hitting neutrality by 2060 — will be a challenge for every part of the country.
But few provinces face the same kind of uphill struggle as Shanxi, the nation’s second-largest coal producing region after Inner Mongolia in 2024.
Shanxi was responsible for just over a quarter of the entire country’s coal output in 2024, according to official statistics. That’s no mean feat considering China likely accounted for half of total global output that year, the International Energy Agency estimates.
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- 2010：
- The State Council approved the establishment of a national-level reform pilot zone in Shanxi to help move its economy beyond coal mining.
- 2017：
- The State Council introduced more measures in Shanxi, including building innovation platforms and increasing financial support.
- May 2019：
- The Commission for Comprehensively Deepening Reform identified Shanxi as an experimental area for green energy.
- 2019：
- Shanxi’s service sector surpassed its industrial sector in GDP contribution for the first time, reaching over 51%.
- 2022：
- Shanxi Pengfei Group Co. Ltd. broke ground on a hydrogen-focused industrial park in Xiaoyi.
- December 2023：
- Pengfei Group began producing green hydrogen in Xiaoyi using renewable power.
- Late 2023：
- The Shanxi provincial government established Jinchuang Valley initiative to incubate tech startups and promote innovation.
- April 2024：
- Shanxi raised its resource tax rates on raw coal and washed coal to 10% and 9%, from 8% and 6.5%, respectively.
- As of the end of 2024：
- Shanxi’s installed renewable energy capacity reached about 61.9 million kilowatts, accounting for 50.4% of the province’s total energy capacity.
- January 2025：
- Shanxi provincial government acknowledged the ongoing challenge of economic transition in its 2025 work report.
- As of 2025：
- Lüliang operates 11 hydrogen refueling stations and has over 600 hydrogen fuel cell vehicles on its roads.
- As of 2025：
- Jinchuang Valley initiative attracted five local higher education institutions and 68 scientific research teams and tech startups.
- As of May 2025：
- Datong’s data centers brought in an annual revenue of 4.67 billion yuan.
- CX Weekly Magazine
Jun. 13, 2025, Issue 22
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