The 10 largest polluting countries emitted a record amount of CO2 in 2023

In 2023, the 10 largest polluting countries increased industrial emissions to a record 24.5 billion tons of CO2, up from 23.9 billion tons (+2.5% y/y) in 2022. This is stated in the review of the Energy Institute, according to Reuters.

The three largest polluters were China, the United States and India, which together accounted for more than 53% of all industrial emissions last year.

China emitted a record 11.2 billion tons of CO2, an increase of 642 million tons compared to 2022 and the largest annual increase since 2011.

The surge in emissions reflects the country’s industrial activity picking up after a negative performance in the previous year, when a combination of COVID-19 restrictions and the onset of a credit crunch in the construction sector undermined economic activity. At the same time, production of construction steel and cement remains low, which will keep emissions down in 2024.

India’s emissions also reached a new high of 2.8 billion tons, up 219 million tons, or 8%, from 2022. The country’s reliance on coal for more than 75% of its electricity means that emissions will continue to rise for several years, even as energy companies build more renewable energy capacity.

In the United States, CO2 emissions from industry in 2023 decreased by 158.5 million tons per year to 4.64 billion tons. As U.S. utilities deploy renewable energy capacity at a record pace, while further reducing coal-fired power generation, additional emissions reductions in the U.S. industrial sector are likely to be achieved by the end of this decade.

Russia, Saudi Arabia, and Iran recorded an annual increase in CO2 emissions in 2023 – at 1.6 billion tons, 620.4 million tons, and 683.6 million tons, respectively.

As a reminder, China increased steel production by 0.6% in 2023 compared to 2022 to 1.019 billion tons. Thus, the downward trend in the country’s steel industry has stopped after two consecutive years of declining production.

Last year, the Chinese authorities did not impose restrictions on steel production in line with their ambitions to reduce CO2 emissions, which contributed to an increase in production and revenue of local steelmakers. At the same time, in 2021-2022, the downward trend in the industry was supported by the relevant restrictions. Thus, in 2023, emissions increased by 7.8% y/y.