China has started the transformation from a coal-based energy system with high environmental costs to a low-carbon and environmentally friendly energy system. Our analyses show that the right strategy for policy measures are on the table, but the success of the energy transition depends on strong practical use of these strategies – the power market must be enforced in a way that stimulate flexibility and integration of RE, the carbon pricing mechanisms must ensure sufficiently high carbon prices to make an impact on CO2 emission and the support schemes for RE must stimulate costefficient deployment of RE projects. Also, more ambitious targets for RE and for coal reduction are needed in the short run if China shall be able to comply with the Paris agreements requirements for a “well Below 2 °C” future.