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.

Partagez:

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.

Turkish power producer Eren Energi Elektrik Uretim has launched a tender to buy 375,000 tonnes of thermal coal to be delivered in five shipments starting from August 2025, according to a document seen by Platts on June 27.
Ireland ends four decades of coal-based electricity production by converting its Moneypoint power plant to heavy fuel oil, now exclusively reserved for the balancing market until 2029.
China's coal imports dropped 18% in May, driven by historically low domestic prices and significant growth in national production, shifting the country's energy market dynamics.
India’s unprecedented drop in power demand led to a sharp decline in coal-based generation in May, while renewable energy output reached a record high.
Greenpeace data shows a renewed wave of coal projects in early 2025, as renewable capacity surpasses thermal energy for the first time.
Financial giant BlackRock highlights economic and strategic risks linked to an antitrust procedure backed by Washington, targeting major asset managers accused of conspiring to reduce coal production in the United States.
Adani Power will supply 1,500 MW to Uttar Pradesh through an ultra-supercritical coal power plant built under the DBFOO model, at a tariff of Rs 5.383 per unit.
A satellite analysis led by Ember and Kayrros shows that methane emissions from Australian mines are 40% higher than official reports, revealing significant gaps in the current coal sector monitoring.
Donald Trump issues several executive orders aimed at reducing regulations on the U.S. coal industry, addressing economic expectations from coal-producing states while securing national energy supply.
Backed by Chinese funding, Zambia and Zimbabwe are reviving coal projects in contrast to international energy sector trends.
New coal-fired electricity capacity added in 2024 dropped to 44 GW, driven mainly by China and India, according to a report released on Thursday.
Finnish energy company Helen has halted operations at the Salmisaari plant, the country’s last coal facility, halving its carbon dioxide emissions in one year.
An independent study suggests that the Hail Creek mine may emit up to eight times more methane than reported in Glencore's official disclosures.
Eskom has connected Unit 6 of the Kusile coal-fired power station, adding 800 MW to the national grid amid efforts to stabilise electricity supply in South Africa.
The Indian government presents a project to create a coal exchange for the domestic market, a measure aimed at improving transparency and regulating the local coal market.
The United States has announced its withdrawal from the Just Energy Transition Partnership with South Africa, thereby reducing the country’s international financial commitments in its gradual exit from coal.
Indonesia sets a floor price for coal to strengthen its control over domestic prices and influence international markets. This new strategy will take effect on March 1, 2025.
Indonesia continues to strengthen its dependence on coal, jeopardizing its greenhouse gas emission reduction commitments. This paradox is highlighted in a recent report, emphasizing the tension between environmental goals and economic realities.
Australian mining giant BHP saw its net profit multiply fivefold, reaching $4.4 billion, despite an 8% drop in revenue. Sustained demand and signs of recovery in China strengthen its outlook.
In 2024, China began building new coal power plants, a decision that threatens its goal of reaching peak carbon emissions by 2030, according to a report published by the Centre for Research on Energy and Clean Air (Crea) and Global Energy Monitor (GEM).