A fresh 90-day trade truce between the U.S. and China is shaking up global energy dynamics. Announced earlier this week, the deal has already triggered a 277% surge in cargo bookings from China to the U.S.—a sign of booming trade and a likely spike in industrial output.

But this economic revival comes at an environmental cost. Despite China’s record-high renewable energy capacity—wind and solar now exceed thermal power—these clean sources met just 22.5% of Q1 electricity demand.

With factories gearing up, demand for reliable, on-demand power is rising—and that means coal and gas are back in the spotlight.Climate groups are sounding the alarm.

Although coal’s share in China’s energy mix has fallen to 54.8%, the expected industrial surge could temporarily reverse that trend.

Analysts say renewables can’t yet shoulder peak demand loads, especially with summer approaching.

The trade truce may ease economic tensions, but it’s complicating China’s green energy ambitions—at least for now.