China’s coal production is rising, endangering global efforts to decarbonize the economy; The country’s coal production is more than 50% of global production

BEIJING – As China ramps up its production and imports of coal, its surge in coal output could offset other countries’ efforts to decarbonize the economy. China is the largest carbon dioxide producer in the world. In 2023, coal production and imports reached record highs, and much of it is used for coal-fired power generation to meet growing electricity demand.

The Economic Information Daily, a Chinese economic newspaper, reported on Friday about an 11-meter-high pile of coal on an area of ​​about 8,000 square meters near a factory of major energy company State Power Investment Corporation in Anhui province, China. The total amount of coal the company stores is reportedly around 16 million tons.

China’s National Energy Administration estimates that maximum energy demand will increase by more than 100 million kilowatts this summer compared to last year. China is likely planning to allay concerns about the balance between electricity supply and demand by showcasing its coal reserves.

According to China’s National Bureau of Statistics and other sources, the country’s coal production rose to a record high of 4.71 billion tons in 2023, up 3% from the previous year. Chinese coal production reached a record high for three years in a row and represents more than 50% of global production. In addition, China’s coal imports have increased, increasing 62% annually to 470 million tons in 2023.

Most of the fuel is used to generate electricity from coal-fired power stations. The Chinese government is believed to have approved an additional 114 gigawatts (GW) of coal power capacity by 2023. The additional capacity alone is twice as much as Japan’s total capacity of 53 GW.

China experienced severe power shortages and unrest in the summer of 2021, which explains the increase in coal production.

In his 2020 UN General Assembly speech, Chinese President Xi Jinping stated that China aims to peak CO2 emissions before 2030. In response to his speech, China’s supply of coal fell and its price rose several times during the year. Many local authorities have reduced their electricity supply to achieve their assigned reduction targets, without securing alternative energy sources.

Energy security is another reason behind coal production. Unlike crude oil and natural gas, which China depends on imports, the country is virtually self-sufficient in coal. Although wind and solar energy generation has increased, these energy sources are dependent on weather conditions. As a result, coal is China’s main source of energy to secure a stable electricity supply. Under these conditions, there will be a rush to build coal-fired thermal power plants until 2030, an energy sector source said. Some expect China’s coal energy capacity to increase by more than 20% in the future.

China’s move goes against the global trend towards a low-carbon economy. The COP 28 UN Climate Conference agreed in December 2023 that the world must reduce greenhouse gas emissions by 43% from 2019 levels by 2030. To achieve this goal, China’s efforts are essential, as the country has about 30 % of global CO2 emissions.

“China has not retreated from action against global warming, but is increasingly prioritizing cheap and stable electricity supplies,” said Taishi Sugiyama, director of research at the Canon Institute for Global Studies.