This paper investigates the asymmetric impact of de‐coal in China on economic output and carbon dioxide (CO2) emissions through a nonlinear time series simulation over the period 1965–2021. The research also estimates the effects of using renewable energy as an alternative fuel to replace coal. The results show that the reducing effect of de‐coal on CO2 emissions is stronger than the increasing effect of coal consumption. The negative impact of de‐coal on economic growth is weak or insignificant. While renewable energy contributes to economic output, it has a reducing effect on CO2 emissions. At the end of the paper, China's targets to achieve carbon neutrality and de‐coal are discussed based on the findings.