China’s coal power expansion poses a significant risk to global climate goals, according to a new report from the U.S. think tank Global Energy Monitor and the Centre for Research on Energy and Clean Air. Despite China’s commitment to reducing greenhouse gas emissions and increasing renewable energy sources, the country has approved a staggering 106 gigawatts (GW) of coal power capacity and started construction on 70 GW in 2023 alone. This rapid pace of development is equivalent to two new coal power plants per week.
The report highlights that China is veering off track to meet its climate targets for 2025 due to its increased use of coal and investment in coal power. Power generation from coal has risen by 12 percent from 2020 to 2023, accounting for 44 percent of the overall expansion in power output. This falls short of the aim of renewable energy accounting for over 50 percent of the increase.
China’s energy transformation efforts may be hindered by the recent boom in coal power permitting, which was prompted by electricity shortages in 2021. In just two years, China approved 218 GW of new coal power, sufficient to power Brazil. The report emphasizes the urgent need for “drastic action” to achieve carbon and energy intensity targets by 2025, as well as challenges in increasing the proportion of non-fossil fuels in the energy mix.
One of the major reasons cited for building new coal power plants is power shortages. However, experts argue that China already has enough generating capacity to meet demand, even during peak periods. The concern lies in the fact that coal power plants are running at low capacity, and it is unclear whether newer capacity will replace older inefficient plants.
The oversupply of coal-fired power capacity in some grid regions is attributed to the rigid and antiquated method of operating the grid. This has led to the construction of more coal power plants in areas with unused capacity. The report criticizes China’s approach of overbuilding coal power as a costly and risky gamble, especially when alternative solutions are available to meet targets and address energy security.
China’s struggle to fulfill its climate pledges extends beyond controlling new coal power. The country aims to decrease energy and carbon intensity, limit coal use, and significantly increase the proportion of renewable energy sources by 2025. However, the report suggests that these goals will not be achieved after 2023. Despite a decrease in GDP growth during the COVID-19 pandemic, CO2 emissions have continued to rise, driven by carbon-intensive industries.
Decarbonization requires a determined workforce, strong government and business policies, and long-term strategic planning. It is not just about short-term financial gain but about fundamental structural reform within the economy. China must commit considerable resources to effectively guide the entire economy towards a zero-carbon future.
In conclusion, China’s coal power expansion poses a significant challenge to global climate goals. Despite commitments to reduce greenhouse gas emissions and increase renewable energy sources, the country continues to approve and construct new coal power plants at an alarming rate. Urgent action is needed to steer China back on track to meet its climate targets and ensure a sustainable future.
