Page 234 - 2020 White Paper on the Business Environment in China
P. 234
0 White Paper on the Business Environment in China
consumption and promote renewable power at and expand the country’s capacity by an amount
home, China provides billions of dollars in support nearly twice the size of Europe’s total coal capacity.
for overseas coal plants per year, according to the If this happens it could single-handedly end any
latest findings. The top recipients—Bangladesh, chance of keeping global warming below 1.5°C,
Indonesia, Pakistan and Vietnam—were countries and also conflicts with the 2°C target, with even a
which are in earlier stages of their development conservative analysis of the goal requiring that China
and have also signed up to China’s Belt and Road cut its coal capacity by roughly 200GW by 2030. The
Initiatives. Domestically in 2018, coal consumption Chinese government has not adopted the industry
accounted for 59 percent of the total energy proposal, but it is under consideration (Myllyvirta).
consumption—down from 60.4 percent in 2017.
Still, China remains the world’s largest producer of China allowed 11 provinces and regions to
carbon emissions. Air pollution is still responsible resume building coal power plants, in another sign
for more than 1 million premature deaths a year in that the world’s largest energy user is far from
the country (Zhou). finished with the most-polluting fossil fuel. The
NEA forecasts that only 10 provinces and regions
A study by Global Energy Monitor, Greenpeace would have an excess of coal-fired electricity
and the Sierra Club claims that China could add 290 generation capacity in 2022, down from 2019’s
GW in new coal-fired plants over the next few years. outlook for a glut in 21 areas by 2021. That means
This would be more than the 261 GW capacity of 11 areas can start building plants again, as the
the entire US coal-power fleet in 2018. China put overcapacity label had suspended construction of
another 110 GW of new power generation into new projects until the issue was addressed. The
operation in 2019. They put 120 GW into operation decision underscores how dependent on coal the
in 2018 after connecting a record 133.7 GW of world’s second-largest economy still is, even as it
new capacity in 2017, according to data from invests hundreds of billions of dollars in cleaner
the China Electricity Council (CEC). China’s total energy sources such as natural gas, wind turbines
installed capacity was expected to break the 2,000 and solar panels. Areas freed up for new coal
GW barrier by the end of 2019, rising around 5 power plant constructions include Hebei, Qinghai,
percent from the end of 2018. Chinese electricity Chongqing, Guangxi, Guangdong, Yunnan, Guizhou
consumption rose to 6.84 trillion kWh in 2018, and Henan. The facilities aren’t allowed to produce
with growth hitting a six-year high of 8.5 percent heat for residential customers, but can serve large
year-on-year. The rise in consumption was led by industrial users (Shen and Murtaugh).
the manufacturing industry and services sector.
China’s coal-fired power capacity reached 1,010 GW In order to meet the growing demand for
by the end of 2018. If China goes to 1150 GW or electricity, China’s biggest power generator, China
higher for coal power by 2022, then China will not Energy Group is planning to build 11 GW of new
meet its Paris Agreement promises (Wang). coal power during 2020. More than 6 GW of new
ultra-low emission coal-fired capacity will be added
The largest power producers in China have asked this year while another 5 GW is planned for 2020.
the government to allow for the development of China Energy Group, which operated coal-fired
between 300 and 500 new coal power plants plants with a total capacity of 175 GW, is planning to
by 2030 in a move that could single-handedly gradually replace small, polluting coal-fired power
jeopardize global climate change targets. In its units with efficient ones, noting that total capacity
review of the government’s five-year-plan, CEC— would continue to increase but at a slower rate
the influential industry body representing China’s of growth. China’s coal consumption has steadily
power industry—recommended adopting a ‘cap’ decreased by a few percent each year since 2013.
for coal power capacity by 2030—but the 1300 In 2018 coal accounted for 59 percent of China’s
GW limit proposed is 290 GW higher than current total energy consumption, 1.4 percent less than the
capacity. The target is for the country’s coal-fired previous year, and the first time coal has accounted
capacity to continue to grow until peaking in 2030. for less than 60 percent of the total energy used.
The cap would enable China to build two large coal Committed to suppressing pollution and fighting
power stations per month for the next 12 years, global warming, China is making a great effort to
234
consumption and promote renewable power at and expand the country’s capacity by an amount
home, China provides billions of dollars in support nearly twice the size of Europe’s total coal capacity.
for overseas coal plants per year, according to the If this happens it could single-handedly end any
latest findings. The top recipients—Bangladesh, chance of keeping global warming below 1.5°C,
Indonesia, Pakistan and Vietnam—were countries and also conflicts with the 2°C target, with even a
which are in earlier stages of their development conservative analysis of the goal requiring that China
and have also signed up to China’s Belt and Road cut its coal capacity by roughly 200GW by 2030. The
Initiatives. Domestically in 2018, coal consumption Chinese government has not adopted the industry
accounted for 59 percent of the total energy proposal, but it is under consideration (Myllyvirta).
consumption—down from 60.4 percent in 2017.
Still, China remains the world’s largest producer of China allowed 11 provinces and regions to
carbon emissions. Air pollution is still responsible resume building coal power plants, in another sign
for more than 1 million premature deaths a year in that the world’s largest energy user is far from
the country (Zhou). finished with the most-polluting fossil fuel. The
NEA forecasts that only 10 provinces and regions
A study by Global Energy Monitor, Greenpeace would have an excess of coal-fired electricity
and the Sierra Club claims that China could add 290 generation capacity in 2022, down from 2019’s
GW in new coal-fired plants over the next few years. outlook for a glut in 21 areas by 2021. That means
This would be more than the 261 GW capacity of 11 areas can start building plants again, as the
the entire US coal-power fleet in 2018. China put overcapacity label had suspended construction of
another 110 GW of new power generation into new projects until the issue was addressed. The
operation in 2019. They put 120 GW into operation decision underscores how dependent on coal the
in 2018 after connecting a record 133.7 GW of world’s second-largest economy still is, even as it
new capacity in 2017, according to data from invests hundreds of billions of dollars in cleaner
the China Electricity Council (CEC). China’s total energy sources such as natural gas, wind turbines
installed capacity was expected to break the 2,000 and solar panels. Areas freed up for new coal
GW barrier by the end of 2019, rising around 5 power plant constructions include Hebei, Qinghai,
percent from the end of 2018. Chinese electricity Chongqing, Guangxi, Guangdong, Yunnan, Guizhou
consumption rose to 6.84 trillion kWh in 2018, and Henan. The facilities aren’t allowed to produce
with growth hitting a six-year high of 8.5 percent heat for residential customers, but can serve large
year-on-year. The rise in consumption was led by industrial users (Shen and Murtaugh).
the manufacturing industry and services sector.
China’s coal-fired power capacity reached 1,010 GW In order to meet the growing demand for
by the end of 2018. If China goes to 1150 GW or electricity, China’s biggest power generator, China
higher for coal power by 2022, then China will not Energy Group is planning to build 11 GW of new
meet its Paris Agreement promises (Wang). coal power during 2020. More than 6 GW of new
ultra-low emission coal-fired capacity will be added
The largest power producers in China have asked this year while another 5 GW is planned for 2020.
the government to allow for the development of China Energy Group, which operated coal-fired
between 300 and 500 new coal power plants plants with a total capacity of 175 GW, is planning to
by 2030 in a move that could single-handedly gradually replace small, polluting coal-fired power
jeopardize global climate change targets. In its units with efficient ones, noting that total capacity
review of the government’s five-year-plan, CEC— would continue to increase but at a slower rate
the influential industry body representing China’s of growth. China’s coal consumption has steadily
power industry—recommended adopting a ‘cap’ decreased by a few percent each year since 2013.
for coal power capacity by 2030—but the 1300 In 2018 coal accounted for 59 percent of China’s
GW limit proposed is 290 GW higher than current total energy consumption, 1.4 percent less than the
capacity. The target is for the country’s coal-fired previous year, and the first time coal has accounted
capacity to continue to grow until peaking in 2030. for less than 60 percent of the total energy used.
The cap would enable China to build two large coal Committed to suppressing pollution and fighting
power stations per month for the next 12 years, global warming, China is making a great effort to
234
