California’s Departure from Coal: Lessons for China’s Energy Transition

California made headlines when it completely phased out coal power at the end of 2025, marking a significant milestone in its journey towards renewable energy. This landmark decision reflects a long-term strategy aimed at promoting cleaner energy sources and serves as a paradigm for other nations, including China, as it grapples with its own energy transition.

The End of an Era: Coal’s Role in California

By December 2025, Los Angeles ceased importing coal-fired electricity from the Intermountain Power Plant in Utah, effectively marking the end of coal use in the city and the state. Mayor Karen Bass referred to this moment as a “defining moment” in California’s transition to 100% clean energy by 2035.

According to the California Energy Commission, coal constituted a mere 2% of the state’s power mix in 2024, while renewable energy surged from 22% in 2015 to 41% in 2024. Christine Shearer, project manager at Global Energy Monitor, emphasizes that California’s limited coal generation eased the transition process compared to other regions where coal plays a more significant role.

Insightful Takeaways for China

Li Shuo from the Asia Society Policy Institute believes that China can glean valuable lessons from California’s strategic approach to energy transition. “China can learn from California’s long-term planning—scaling up storage and renewable energy to accelerate the phase-out of coal,” asserts Li. In light of California’s history of advancing renewable energy goals, China’s focus must shift towards reducing coal dependency.

California has consistently updated its renewable energy targets. Originally set at 20% renewables by 2017, these goals increased to 33% by 2020 and aim for 50% by 2030, with a target of achieving 100% by 2045.

Contrasting Policies: California vs. Federal Government

California’s ambitious policy contrasts sharply with the federal stance under past administrations. While California has pursued aggressive coal reduction efforts, federal policies have often favored coal, with former President Trump describing it as “clean” and “beautiful.” His government extended the operation of aging coal plants, demonstrating a stark divergence in energy policy across levels of governance.

This inconsistency has left states like California to act autonomously, creating unique frameworks that prioritize clean energy.

Collaborating with China: A Mutual Commitment to Clean Energy

California’s relationship with China has blossomed over the years, particularly in the realm of clean technology. Despite fluctuations in diplomatic relations, California has remained a climate leader, striving to maintain collaboration on sustainable initiatives. The California-China Climate Institute, established in 2019, symbolizes this commitment.

Governor Gavin Newsom’s recent memorandum of understanding with China’s National Development and Reform Commission underscores both parties’ dedication to enhancing carbon capture technologies and regional cooperation.

The Future of Coal: Trends and Implications

Although California has effectively ended its relationship with coal, it remains a contentious issue across the U.S. National data reveals a decline in coal-fired capacity from 340 GW in 2011 to 190 GW in 2025. However, there still exists considerable policy uncertainty, impacting the pace of coal replacement with renewable sources.

Similarly, while China still relies on coal, particularly for heating, recent data indicates a gradual decline. The Beijing area’s coal consumption plummeted from 30 million tonnes in 2000 to less than 600,000 tonnes today. While new coal projects are continually approved, these primarily aim to replace old facilities rather than increase total coal consumption.

How the U.S. and China Can Transform Energy Systems

The U.S. and China share challenges regarding grid reliability, often leading to the continued operation of coal plants. Transitioning to renewable energy along with battery storage solutions is vital for both nations. California has embraced this approach, adding approximately 40 GW of renewable power and battery storage since 2019.

States like Texas have also demonstrated that renewable energy can flourish in competitive markets, where newer technologies and storage solutions create a more robust grid.

Conclusion: A Shared Path Towards Clean Energy

California’s successful transition away from coal serves as a beacon for China and other countries aiming to reduce fossil fuel dependence. Through strategic planning, consistent policy updates, and international collaboration, significant strides can be made toward a sustainable energy future.

The lessons learned from California’s journey are not solely applicable within American borders, but hold universal relevance for any nation committed to phasing out coal and embracing a cleaner, more sustainable energy mix.