Page 188 - 2023 White Paper on the Business Environment in China
P. 188
3 White Paper on the Business Environment in China
Coal China's coal imports in July rose by nearly a
quarter as power generators increased purchases
On 21 September 2021, China's president, Xi to provide for peak summer electricity demand.
Jinping, told the UN General Assembly via video link Over the first seven months of 2022, China
that China would increase support for green and imported 138.52 million tons of coal, down 18%
low-carbon energy in developing countries, and not on the same period of 2021. An unseasonably
build any new coal-fired power projects overseas. hot summer changed the path. The government
China has been a major builder of coal power vowed to avoid power rationing in 2022 and urged
plants around the world, often providing both the coal-burning power generators, which supply
finance and the technology. Its decision is having about 60% of the country's electricity, to enlarge
and will have a profound effect, both at home and coal stocks. Thus, China’s seaborne coal imports
in expanding the low-carbon development and from Russia hit a record high of 7.38 million tons
energy transition paths of developing nations. in July 2022 (Reuters, China’s July).
Between September 2021 and April 2022, 15
overseas coal power projects that were in the pre- Nationwide, power plants burnt 8.16 million
financial closure and pre-construction stages were tons of thermal coal daily for the first two weeks
shelved or cancelled. These were projects that had of August 2022, up 15% from the previous year,
nonetheless received Chinese financial backing or according to most recent data from the National
EPC (engineering, procurement and construction) Development and Reform Commission. On August
support. The proportion of fossil fuel projects 3, daily thermal coal consumption hit a record high
in China’s Belt and Road energy sector projects of 8.5 million tons. China is now more reliant on
started to fall in 2016 and bottomed out in 2020, coal for power than it was last year. In July 2022,
when 58% of investment went to renewables electricity generated from coal increased 22%
(hydropower, solar, wind and bioenergy), the first- from June, accounting for 69% of the total. Coal-
time renewables surpassed fossil fuels. And apart fired power made up 67.4% of China’s electricity
from the 15 Chinese-built or funded coal power supply in 2021. 2022’s shortages proved that coal
projects that were cancelled between September is indispensable (He).
2021 and April 2022, the country made no
overseas coal power investments in 2021 or the The 2022 energy crisis is not only an unintended
first half of 2022 (Chen and Shen). consequence of high temperatures and drought,
but also a result of its long-term net-zero emissions
While China has taken steps to decarbonize goal. Increased coal import costs and rash control
its overseas investments, more can be done to of domestic coal production put China's energy
decarbonize China's global power including a supply in question, and renewable energy wasn't
particular focus on decarbonizing Asia, where the ready to fill the gap. Indeed, it isn't the first energy
most generating capacity is financed by China and security crisis China has endured in recent years.
over 50% is coal-based. About half of that total Dozens of provinces experienced "power cuts" in
capacity of Chinese-backed power generation 2021 partly due to long-term reductions in coal
overseas is fossil-fuel related, and the pipeline of production between 2016-2020. Chinese Energy
projects could add another 100m tons of annual News called energy security a matter of national
CO2 emissions if they are all completed. China’s destiny. Caught between green energy promises
overseas power portfolio is still dominated by and dwindling energy supply, Beijing turned to see
coal and large-scale hydropower, indicating that green energy as a secondary goal that could be
China can do more to implement its pledge to step put aside after energy security is fully guaranteed.
up support for green and low-carbon energy in The push for more coal power is at odds with
developing countries — especially wind and solar China's climate goals. According to China's 13th
power. The majority of the China-financed overseas Five Year Plan, coal-fired plants should be capped
power generation capacity now in the planning at generating 1,100 gigawatts of electricity. To
stage will employ low-carbon energy sources, date, China has 1,074 gigawatts of coal power in
indicating that a recent pledge to end overseas coal operation, but more than 150 gigawatts of new
financing is having an effect (Al Jazeera). plants have either been announced or permitted.
188
Coal China's coal imports in July rose by nearly a
quarter as power generators increased purchases
On 21 September 2021, China's president, Xi to provide for peak summer electricity demand.
Jinping, told the UN General Assembly via video link Over the first seven months of 2022, China
that China would increase support for green and imported 138.52 million tons of coal, down 18%
low-carbon energy in developing countries, and not on the same period of 2021. An unseasonably
build any new coal-fired power projects overseas. hot summer changed the path. The government
China has been a major builder of coal power vowed to avoid power rationing in 2022 and urged
plants around the world, often providing both the coal-burning power generators, which supply
finance and the technology. Its decision is having about 60% of the country's electricity, to enlarge
and will have a profound effect, both at home and coal stocks. Thus, China’s seaborne coal imports
in expanding the low-carbon development and from Russia hit a record high of 7.38 million tons
energy transition paths of developing nations. in July 2022 (Reuters, China’s July).
Between September 2021 and April 2022, 15
overseas coal power projects that were in the pre- Nationwide, power plants burnt 8.16 million
financial closure and pre-construction stages were tons of thermal coal daily for the first two weeks
shelved or cancelled. These were projects that had of August 2022, up 15% from the previous year,
nonetheless received Chinese financial backing or according to most recent data from the National
EPC (engineering, procurement and construction) Development and Reform Commission. On August
support. The proportion of fossil fuel projects 3, daily thermal coal consumption hit a record high
in China’s Belt and Road energy sector projects of 8.5 million tons. China is now more reliant on
started to fall in 2016 and bottomed out in 2020, coal for power than it was last year. In July 2022,
when 58% of investment went to renewables electricity generated from coal increased 22%
(hydropower, solar, wind and bioenergy), the first- from June, accounting for 69% of the total. Coal-
time renewables surpassed fossil fuels. And apart fired power made up 67.4% of China’s electricity
from the 15 Chinese-built or funded coal power supply in 2021. 2022’s shortages proved that coal
projects that were cancelled between September is indispensable (He).
2021 and April 2022, the country made no
overseas coal power investments in 2021 or the The 2022 energy crisis is not only an unintended
first half of 2022 (Chen and Shen). consequence of high temperatures and drought,
but also a result of its long-term net-zero emissions
While China has taken steps to decarbonize goal. Increased coal import costs and rash control
its overseas investments, more can be done to of domestic coal production put China's energy
decarbonize China's global power including a supply in question, and renewable energy wasn't
particular focus on decarbonizing Asia, where the ready to fill the gap. Indeed, it isn't the first energy
most generating capacity is financed by China and security crisis China has endured in recent years.
over 50% is coal-based. About half of that total Dozens of provinces experienced "power cuts" in
capacity of Chinese-backed power generation 2021 partly due to long-term reductions in coal
overseas is fossil-fuel related, and the pipeline of production between 2016-2020. Chinese Energy
projects could add another 100m tons of annual News called energy security a matter of national
CO2 emissions if they are all completed. China’s destiny. Caught between green energy promises
overseas power portfolio is still dominated by and dwindling energy supply, Beijing turned to see
coal and large-scale hydropower, indicating that green energy as a secondary goal that could be
China can do more to implement its pledge to step put aside after energy security is fully guaranteed.
up support for green and low-carbon energy in The push for more coal power is at odds with
developing countries — especially wind and solar China's climate goals. According to China's 13th
power. The majority of the China-financed overseas Five Year Plan, coal-fired plants should be capped
power generation capacity now in the planning at generating 1,100 gigawatts of electricity. To
stage will employ low-carbon energy sources, date, China has 1,074 gigawatts of coal power in
indicating that a recent pledge to end overseas coal operation, but more than 150 gigawatts of new
financing is having an effect (Al Jazeera). plants have either been announced or permitted.
188
