Shanxi, China’s coal powerhouse, is now at the epicenter of a defining industrial and environmental transformation. Once called the nation’s “coal heartland,” the province produced a staggering 1.27 billion tonnes of coal in 2024—more than India, and enough to make Shanxi the world’s second-largest coal producer if it were a country. However, as China accelerates its journey toward carbon neutrality—a pledge to hit peak emissions by 2030 and reach net-zero by 2060—Shanxi faces mounting pressure to recalibrate its economy and redefine its identity.
For decades, coal mining has been the bedrock of Shanxi’s development, employing roughly one in ten residents and anchoring the region’s financial stability. But this model is rapidly becoming unsustainable. The country’s renewables momentum has been breathtaking: wind and solar capacity in China surged to nearly 1,500 GW in April, surpassing fossil fuel generation for the first time. Furthermore, initial data suggests China’s CO₂ emissions may have already peaked.
Yet despite this clean-energy boom, coal-fired power still dominates China’s electricity system, generating close to 60% of the nation’s power. The government has responded by pledging to boost coal production and supply to safeguard against power shortages, recalling the devastating blackouts of 2021–22 and drawing lessons from energy-scarce regions like Iberia.
This complex reality is playing out in Shanxi. Its leaders are exploring alternative economic engines, notably by fostering tourism that spotlights the province’s historical and cultural assets. Xu Xiaobo, a former miner, embodies this shift: now working in administration and guiding tours part-time, he says he wants to showcase Shanxi beyond its reputation for coal dust and pollution. Meanwhile, clean-energy projects using solar and hydrogen are taking shape—solar capacity has climbed to nearly 62 GW, and companies like LONGi and Meijin Energy are expanding into hydrogen, albeit some from coal-based feeds.
Still, the path ahead is far from smooth. Shanxi’s GDP growth lags behind the national average, and job losses loom as coal mines close or shrink. Families accustomed to mining incomes are expressing resistance, fearful of unemployment and downward mobility . The province’s fate is thus emblematic of China’s broader struggle: how to harmonize aggressive climate goals with economic viability and social equity, especially in regions deeply entwined with dirty energy.
Experts caution that China’s transition must be “fair”—a promise repeatedly underscored by President Xi Jinping. But balancing this with energy security is proving politically and technically daunting. The 15th Five Year Plan spanning 2026–30 will be a litmus test: will it prioritize carbon cuts without triggering instability or unemployment?
What happens in Shanxi carries global consequences. As the world’s largest coal user and carbon emitter, China’s success or failure in decarbonizing provinces like Shanxi will critically shape the planet’s ability to avoid devastating climate change. Amid unprecedented clean-energy growth, the dual-track reality—new renewables alongside coal expansion—reveals both promise and dangerous inertia . Whether Shanxi can reinvent itself as a greener, innovation-driven powerhouse remains uncertain—but it is undeniably at the forefront of China’s green revolution.
