This article analyses the national circumstances and major factors underpinning China's energy demand and supply, energy-related emissions, and consequently China's sustainable development. These factors include the huge, still growing, and aging population, rapid economic growth, ongoing industrialization and urbanization, environmental and health concerns at local, regional and global level. Against such background analysis, the article explores the potential and constraints of non-fossil fuel, fuel-switching to natural gas, economy restructuring and clean coal technology in mitigating emissions of greenhouse gases (GHG) and ensuring energy supply in China. The authors reiterate the importance of improving energy efficiency in China and discuss how to integrate renewable energy into rural development. The article concludes with an in-depth discussion about redefining development goals, the equity issue in climate change process, and the linkage with sustainable development.