Mining is an economic activity, and as soon as cheap electricity is available, mining activities will preserve it, meaning that mining activities are not focused on fossil fuels or an activity that destroys the environment, such as shale oil and others.
The more governments press for cheaper alternatives related to renewable energies, the more bitcoin mining will use them.
I also note that China may begin to reduce dependence on environmentally polluting activities by the year 2030, so we will witness a green revolution.
In general, environmental issues do not worry me because as I mentioned Bitcoin mining needs electricity regardless of its source.
China is hard to trust. They flip their opinion, plans all time. From environment, politics, economics and health issues. They are not transparent with things they are doing.
Same with Bitcoin, crypto and their regulations. It is best to see what will happen and not believe in what they announce.
Hydropower mainly, yup. Cheapest form of energy in many regions there, with plenty of surplus, and for a time, easy to do really good corporate deals with the state governments. You'd definitely have to be a hobbyist or independent to still be trying out coal when there's plenty of cheap hydropower coming out from there from megadams. They switched one new megadam mid-last year, another mega one to come this July (yes, these actually also came at the expense of environment, special the 3 gorge dam project but that's the price they're paying for clean renewables).
China has many hydropower plants and they have so many biggest hydropower plants on Earth. Their hydropower plants and huge dams make the ecosystem along the Mekong Delta become worse.
Their neighborhood nations complain too much with their megadams and serious changes for ecosystem there. China disclaim all of accusations with their dams.
They have the a huge hydropower supply on Earth.