Nation ramps up efforts to curb coal consumption

China will take action to further curb coal consumption in the years to come as the latest move of the country's concerted efforts to bring carbon emissions to a peak by 2030, according to a plan issued by State Council, the country's Cabinet.

The plan unveiled on Tuesday said China will "speed up the pace in cutting coal consumption, strictly and rationally limit the increase in coal consumption during the 14th Five-Year Plan period (2021-25) and phase it down during the 15th Five-Year Plan period (2026-30)".

To achieve the goal, China vowed to promote use of alternative energy sources and spur an industrial upgrade in the coal sector, according to the document.

The country will place severe restrictions on new coal-fired power projects, urge newly constructed generation units to reach an advanced level in meeting coal consumption standards on a global scale, phase out outdated coal power capacity, and promote an upgrade to generation units currently in operation to make them more energy-efficient, it said.

Other measures will include strictly restricting cross-regional transportation of coal-fired power, encouraging less coal use in energy-intensive industries, promoting eco-friendly coal use, and gradually banning coal burning in sections including residential life, agricultural production, and catering, the action plan said.

The plan came as coal supplies had shown signs of picking up under the government's efforts to ramp up output to ensure power and heating demand during the upcoming winter. Experts said coal still plays an important role in ensuring energy supply although going forward, it will take up a smaller part in China's energy structure with rapidly developing new energy sources.

Coal will eventually transit into a role of power source that is for ensuring basic energy needs and systematic adjustment in the process of power generation, while new energies will become more essential in guaranteeing energy supplies, experts said.

In order to achieve the goal, it is important for energy-intensive industries to have structural adjustments and cut capacity. Government should also take steps to promote low-carbon transition in the coal industry, encourage development of a circular economy, and step up development of tertiary industries, they added.

"Currently fast development of industries creates big demand for power, and coal-fired power generation takes up about 65 percent of the total power generated. Taking down proportion of coal in China's energy structure while ensuring energy supplies to both livelihood and industries needs long-term efforts," said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University in Fujian province.

At present, China is working on price mechanisms on coal and power to balance demand and supply.

"Given that coal-fired power generation still takes up a big part of China's current energy mix, how to promote green transformation of the coal-fired power industry will become an area of focus for development in the short term," Lin said.

Wu Lixin, assistant to general manager of the Coal Industry Planning Institute of China Coal Technology and Engineering Group, said companies in the coal-fired power sector are already taking measures, such as phasing out outdated capacity, adopting technology-led production procedures, and innovative technologies to reduce carbon emissions, in order to switch to a greener path of development.

"Meanwhile, it is important to manage power use in energy-intensive industries such as steel and aluminum, and encourage energy-efficiency technology development in those sectors in the short- and medium-term," Lin said.

"While in the long run, new energies and circular economies will see opportunities of growth as China is taking measures to optimize its energy mix with the most recent being encouraging construction of large-scale wind and solar bases in deserts," he added.