China’s climate commitment is increasingly difficult to ignore. Although the country is recognized as a leader in renewable energy, particularly solar power, its efforts haven’t been enough to reduce its dependence on coal. In fact, the Chinese government recently reaffirmed its commitment to energy security by emphasizing the continued use of coal.
A growing global demand. According to the latest International Energy Agency report, China ended 2024 with a coal demand that was 30% higher than that of all other countries combined. This high level of domestic demand has solidified China’s position as the world’s leading consumer of coal, prompting a need for a stable supply for its economy and energy sector.
Coal dependence. In response to this demand, the China Coal Transportation and Distribution Association announced that coal production will increase by 1.5% this year, marking the ninth consecutive annual increase. This production rise is tied to the expected 1% increase in domestic demand, alongside the need to ensure adequate energy supplies.
Changes. In the first half of 2024, China reduced the number of permits for new coal plants by 80%. The country also expects to decrease emissions from new construction by 20%.
However, China plans to increase its coal supplies to ensure energy security, which has led to an expansion of its mining capacity. As a result, coal production will recover in 2025 following earlier interruptions due to safety issues in mines, particularly in Shanxi province in North China. This recovery will help reduce imports and could impact foreign purchases. However, producers in countries like Mongolia and Russia will continue to seek to maximize their sales to China, the world’s largest coal consumer.
What about renewables? China has recently made significant investments in clean energy and is a global leader in solar and wind power production. However, the transition to renewable sources hasn’t yet entirely replaced coal. Despite its leadership in solar energy, the Asian nation still relies on coal to maintain energy security and mitigate the risks of supply shortages and disruptions in the energy supply chain.
The elephant in the room. Although China is a leader in renewable energy, it remains the world’s largest consumer of coal. This contradiction highlights the country’s challenge in achieving an energy transition while sustaining economic growth.
Image | Bart van Dijk
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