China's Emissions Fall Amid Iran War as Electric Vehicles Fill the Gap

China's carbon dioxide emissions fell by 1% after the outbreak of the US-Israeli war on Iran, thanks to reduced oil consumption and increased use of electric vehicles and public transport. The report reveals the role of clean energy in cushioning price shocks caused by the strait of Hormuz crisis to the world's biggest oil importer.

According to second-quarter energy data reported by China's National Bureau of Statistics, the country was able to increase overall transportation use despite cutting oil imports by 32% in February. This reduction helped stabilize global oil prices, which surged by about 60% after the first US airstrikes.

The analysis indicates that two-thirds of the fall in imports came from running down strategic oil stockpiles, while the remaining third was largely covered by a reduction in demand. China's use of oil fell by 9% overall and by 16% for transport, with electric cars, buses, trains, and trucks making up for the shortfall.

Lauri Myllyvirta, lead analyst at the Centre for Research on Energy and Clean Air, noted that this was the first time China's overall emissions had fallen due to a reduction in oil use rather than coal consumption. He added that electrification is 'the winning strategy' to insure against price shocks.