China relies on coal

Faced with the energy crisis and following the high heat of this summer, China fears a shortage of electricity. Thus, it relies on coal.

Share:

Comprehensive energy news coverage, updated nonstop

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

7-Day Pass

Up to 50 articles accessible for 7 days, with no automatic renewal

3 $/week*

FREE ACCOUNT

3 articles/month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 30,000 articles • 150+ analyses per week

Faced with extreme heat this summer, an energy shortage and rising gas and oil prices, China has increased its coal production, raising concerns about the climate consequences of this choice.

Yet President Xi Jinping had pledged to reduce the use of coal from 2026 as part of a series of commitments to reduce China’s CO2 emissions by 2030 and achieve carbon neutrality by 2060.

China, the world’s largest emitter of greenhouse gases, has reduced its CO2 emissions for four consecutive quarters due to slower economic growth, according to a study published in early September by the climate observatory Carbon Brief.

But to revive their economy, the authorities are relying on an increase in the production of coal, an energy source that is particularly harmful to the climate.

This policy of support for this sector, which accounts for most of its electricity production, worries experts who fear that it will complicate a possible transition to greater use of renewable energy.

Last fall, fearing an energy shortage, the authorities ordered coal producers to increase their extraction capacity by 300 million tonnes by 2022, the equivalent of one more month of coal production for the country.

As of the first quarter of 2022, Chinese regulators have authorized coal mines with a total capacity of 8.63 gigawatts, according to Greenpeace. This is already almost half of the approved capacity for the entire year 2021.

Avoiding shortages

In recent weeks, due to the unprecedented heat wave, more coal has been burned and extracted to run air conditioners and to compensate for the reduced production of hydro dams due to the drying up of rivers.

In June, Premier Li Keqiang called for “increasing coal production capacity as much as possible and establishing long-term coal supply.”

According to the independent Climate Action Tracker, even the “most stringent” climate targets set by Beijing to combat warming would lead to global warming of 3 to 4°C before the end of the century, well beyond the Paris agreement’s goal of limiting global warming to 1.5°C.

To meet this goal, China will need to “reduce its emissions as soon as possible and well before 2030″ and “cut coal and other fossil fuel consumption at a much faster rate than previously expected.”

Beijing’s reluctance to move away from coal is due in part to the inefficiency of its power grid, which does not allow for the transport of surplus energy from one region to another.

Coal and gas provide an immediate source of energy and are, in practice, “the only way for local authorities to avoid power shortages,” wrote researcher Lauri Myllyvirta in a Carbon Brief report.

More complicated transition

However, China has made real progress in renewable energy. The country’s current operational solar capacity represents nearly half of the world’s total, according to the San Francisco-based NGO Global Energy Monitor (GEM).

But unlike wind or solar power, coal and gas stocks can be stored and used as needed, giving local authorities a sense of security.

Yet building more coal-fired facilities means less focus on solving grid problems, Myllyvirta told AFP, fearing that this will cause plant owners to “slow down the transition because they will have an incentive to use their brand new assets.”

At the same time, the central government wants to “avoid large-scale power outages, such as those that hit northeastern provinces last winter, in what is a politically crucial year for Mr. Xi,” according to Byford Tsang, senior policy advisor at the climate think tank E3G.

President Xi is expected to win an unprecedented third term in power at the Communist Party Congress on October 16.

Tsang said the surge in global energy prices due to Russia’s invasion of Ukraine has also prompted Beijing to boost its domestic coal production, pointing to a 17.5% drop in coal imports in the first half of 2022 compared to last year.

“The more China relies on coal now, the harder it becomes to finance and implement renewable energy projects later,” Wu Jinghan, climate and energy project manager for Greenpeace in East Asia, told AFP.

“The longer we wait to make the transition, the more complicated the path to transition becomes,” he added.

Queensland coal producers are struggling to rein in costs, which remain above pre-2022 levels as the impact of royalty hikes and margin pressures continues to weigh on the sector.
Coal will temporarily become the main source of electricity in the Midwest markets MISO and SPP during winter, according to the latest federal forecasts.
The Trump administration plans to open millions of federal hectares to coal and ease environmental rules governing this strategic industry.
The integration of private operators into South Africa’s rail network marks a turning point for coal exporters, with a target of 55 million tonnes exported in 2025 from the Richards Bay terminal.
Facing Western restrictions, Russia plans to increase coal deliveries to China, India and Turkey, according to a recent presentation on the sector’s outlook.
The visit of the Pakistani president to Shanghai Electric marks a new strategic phase in China-Pakistan energy cooperation, centred on the Thar mining and power project and local skills development.
Port congestion in Australia has boosted Russian and Indonesian coal exports to South Korea, with both now dominating the market due to lower prices and reliable delivery schedules.
Polish state-owned producer JSW confirms its 13.4 million tonnes production target for 2025 thanks to new equipment coming online, despite recent disruptions at multiple sites.
Russia and Indonesia overtook Australia as South Korea's top thermal coal suppliers in August, driven by lower prices and more reliable logistics amid persistent Australian shipment delays.
Uniper has demolished cooling tower F at its Scholven power plant, marking a new stage in the dismantling of the Gelsenkirchen coal site, where the energy company plans to build a hydrogen-ready gas-fired plant.
Underreported methane emissions from Australian mines could increase steelmakers’ carbon footprint by up to 15%, according to new analysis highlighting major gaps in global supply chains.
The new Russian railway line linking the Elga mine to the Sea of Okhotsk port will reach full capacity in 2026, after an operational testing phase scheduled for 2025.
The Romanian government is asking the European Union for a five-year delay on the closure of 2.6 gigawatts of coal capacity, citing delays in bringing gas and solar alternatives online.
President Gustavo Petro bans all coal exports to Israel, a decision with minor energy effects but strong diplomatic weight, illustrating his anti-Americanism and attempts to reshape Colombia’s domestic politics.
India’s coking coal imports are rising and increasingly split between the United States and Russia, while Australian producers redirect volumes to China; 2025 results confirm a shift in trade flows.
China approved 25 GW in H1 2025 and commissioned 21 GW; the annual total could exceed 80 GW. Proposals reached 75 GW and coal’s share fell to 51% in June, amid declining imports.
Valor Mining Credit Partners completes its first major financing with a secured loan to strengthen the operational capacity of a U.S. mining site.
Amid tensions on the Midwest power grid, Washington orders the continued operation of the J.H. Campbell plant to secure electricity supply over the coming months.
Peabody Energy abandons the acquisition of Anglo American’s Australian coal assets, triggering an arbitration process following the failure of a post-incident agreement at the Moranbah North mine.
Core Natural Resources announces USD220.2mn in operating cash flow for the second quarter of 2025, while revising its capital return strategy and increasing post-merger synergies.

All the latest energy news, all the time

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

7 DAY PASS

Up to 50 items can be consulted for 7 days,
without automatic renewal

3$/week*

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.