Disruptions to Gulf Exports Hamper Oil Market Recovery; China’s National Carbon Market to Expand to Petrochemical and Chemical Industries, Covering About 80% of CO2 Emissions
(2026/08/10—2026/08/16)
Author：Hao-Wang
International Energy News
1.Disruptions to Gulf Exports Hamper Oil Market Recovery
Recently, the International Energy Agency’s August Oil Market Report noted that renewed disruptions to oil exports from the Gulf have put the recovering global oil market under renewed pressure. Global oil supply rebounded to approximately 101.5 million barrels per day in July, but remained about 6.3 million barrels per day below the level recorded a year earlier. Meanwhile, global observed oil inventories fell by about 69 million barrels in a single month to below 7.9 billion barrels. Supply disruptions and declining inventories have jointly heightened uncertainty in international energy markets.
Demand is also showing considerable volatility. The IEA expects global oil demand to decline by around 1.6 million barrels per day in 2026, a further downward revision from its previous forecast, before rebounding by approximately 2.4 million barrels per day in 2027. In the short term, weaker oil consumption may help ease growth in fossil fuel use and associated carbon emissions. However, a strong subsequent recovery in demand could prolong the global energy system’s dependence on oil and increase pressure on the achievement of medium- and long-term energy transition and carbon reduction targets.
2. Saudi Energy Ministry and Syrian Electricity Company Sign Cooperation Agreements for Solar Projects
Recently, several power purchase and technical cooperation agreements were signed for solar energy projects in the Middle East. The agreements involve the development of three large-scale solar photovoltaic projects with a combined installed capacity of 760 MW, supported by battery energy storage systems with a total capacity of 1,077 MWh. The power purchase agreements will run for 20 to 25 years, with electricity prices starting from approximately USD 0.03 per kWh, highlighting the competitiveness of large-scale solar-plus-storage projects in providing low-cost electricity over the long term.
The cooperation also covers engineering consulting, project management, main substation construction, and technical support for power generation and energy storage systems. These measures are expected to enhance local grid stability and improve the integration of renewable energy. As solar and energy storage deployment expands, the projects could reduce reliance on conventional fossil fuels in the power system, promote a shift toward a lower-carbon energy mix, and contribute to long-term reductions in power-sector carbon emissions.
3. IIT Guwahati Develops Two-Stage Microalgae Cultivation Method to Improve CO2 Capture Efficiency
Researchers at the Indian Institute of Technology Guwahati have developed a nutrient-assisted, two-stage microalgae cultivation method. In the first stage, microalgae are exposed to a CO₂ concentration of 15% to promote rapid growth. In the second stage, the CO₂ concentration is reduced to 5%, while calcium and phosphorus are added to improve the acid-base balance of the cultivation system and maintain photosynthetic activity. Experimental results show that the method increased microalgal biomass production by 25.7%, CO₂ fixation by 35.4%, lipid productivity by 1.86 times, and total intracellular bioenergy efficiency by 37.65%.
The technology also significantly improves microalgal self-flocculation and biomass recovery, achieving a recovery efficiency of 98.46%. This could help reduce the energy-intensive downstream separation costs associated with microalgal biorefineries. In the future, the method could be integrated with CO₂-rich industrial flue gas for larger-scale applications, enabling the production of renewable fuels such as biodiesel while capturing industrial carbon emissions and providing a potential pathway for jointly advancing carbon mitigation and bioenergy development.
Domestic Energy News
1. China’s National Carbon Market to Expand to Petrochemical and Chemical Industries, Covering About 80% of CO2 Emissions
Recently, a press conference in the State Council Information Office’s series on the launch of the 15th Five-Year Plan period announced that China’s national emissions trading system will expand beyond the power generation, steel, cement, and aluminum smelting industries to cover other high-emitting sectors, including petrochemicals and chemicals. The expanded market is expected to effectively regulate approximately 80% of the country’s CO₂ emissions. By the end of July 2026, cumulative trading volume in the national carbon market had exceeded 930 million tonnes, further strengthening the role of market-based mechanisms in emissions reduction.
During the 15th Five-Year Plan period, China will also implement dual controls on both the total volume and intensity of carbon emissions, promote green and low-carbon transformation across key sectors including energy, industry, transportation, and buildings, and strengthen controls on non-CO₂ greenhouse gases such as methane. The plan calls for an approximately 3% reduction in carbon emissions per unit of product in sectors covered by the national carbon market, further strengthening the role of carbon pricing in guiding investment toward energy conservation, emissions reduction, clean energy, and low-carbon technologies.
2. China Releases Coal Industry Development Plan for the 15th Five-Year Plan Period
Recently, the Coal Industry Development Plan for the 15th Five-Year Plan period set out key targets for the sector through 2030. Coal consumption is expected to peak by 2030, while the share of production capacity from large modern coal mines will rise to 87% and the share of intelligent coal mine capacity will reach 75%. The five major coal supply bases in Shanxi, western Inner Mongolia, eastern Inner Mongolia, northern Shaanxi, and Xinjiang are expected to account for more than 80% of national coal output. China also plans to establish more than 100 million tonnes per year of reserve coal production capacity, further strengthening energy security.
The plan also promotes the green and low-carbon transformation of the coal industry by accelerating clean energy substitution for coal-fired boilers and industrial furnaces, advancing the integration of coal power with renewable energy and energy storage, and expanding coalbed methane development and utilization. By 2030, coalbed methane production is targeted to reach 26 billion cubic metres. As coal consumption shifts from continued growth toward a peak plateau, the energy mix is expected to improve, while greater utilization of coalbed methane and mine gas could help reduce emissions of methane and other greenhouse gases, supporting both energy security and carbon mitigation.
3. Ningbo Becomes China’s First City with More Than 10 GW of Distributed Solar PV Capacity
Recently, following the grid connection of a 1,038 kW distributed solar photovoltaic project at Ningbo Science High School, Ningbo’s total distributed solar PV capacity surpassed 10 GW, making it the first city in China to reach this milestone. Industrial parks account for 84% of the city’s distributed PV capacity. At present, around one out of every ten kilowatt-hours of electricity consumed for production and daily life in Ningbo is supplied by solar power. Assuming 1,000 full-load equivalent operating hours annually, these distributed PV systems can generate approximately 10 billion kWh of clean electricity each year.
The large-scale deployment of distributed solar PV is estimated to reduce CO₂ emissions by about 5 million tonnes annually. However, the variability of renewable generation also presents challenges for grid operation, with short-term output fluctuations of up to 3 GW during rapid changes in weather conditions. Ningbo is addressing these challenges by integrating energy storage, microgrids, flexible commercial and industrial loads, and virtual power plants, aggregating more than one gigawatt of adjustable resources to improve renewable energy integration and enhance power system flexibility.
(Main news sources: CCTVNEWS APP, International Energy Network, China Energy Network, National Energy Administration, China Energy News)
