China's Q2 2026 CO2 Emissions Decline 1% Amid Oil Supply Disruption

China’s carbon dioxide emissions fell 1% in the second quarter of 2026, the first quarterly drop in recent years. The decline followed a 9% reduction in overall oil consumption and a 16% cut in transport‑sector oil use, triggered by disruptions to Gulf supplies through the Strait of Hormuz. The data show that the country’s reliance on imported oil can directly influence its emission trajectory. The fall in emissions is a clear indicator of how external supply shocks can temporarily lower a major emitter’s carbon footprint, even as domestic demand remains high.